The Contract of Sale, or Purchase and Sale Agreement, is a legally binding document whereby the homeowner and buyer agree to terms under which the buyer will acquire the seller’s property.
Who is paying the various expenses of the sale, including closing costs? Both buyers and sellers incur expenses during the transaction process. Buyers are typically responsible for costs associated with the down payment placed on their new home, any home inspections, a portion of the escrow fees, a title insurance policy benefiting the lender, and any loan costs. Sellers generally pay for a portion of the escrow fee as well as a standard title insurance policy. The responsibility of the annual expenses of property taxes and homeowner association fees is typically shared equally between buyers and sellers and prorated based on the closing date.
What is the actual closing date?
The closing date of a real estate transaction is the date in which proceeds from the sale are available to the seller and the transfer of the title has been recorded by the county. The lender is responsible for providing the buyer with a good faith estimate, which will provide a close approximation of the buyer’s financial requirement to close the transaction.
What is the date of occupancy?
The date of occupancy is agreed to between the buyer and seller during the negotiation process. If the seller remains in possession after closing, there should be a rent back agreement in place prior to closing. It will be important to clarify the status with your insurance company that you are in possession of the property after closing.
To enhance the success of selling your home and reduce the chances its new buyer will encounter problems after the sale, it’s a prudent idea to invest in a home warranty. The Coldwell Banker Home Protection Plan, which is paid out of escrow at the closing of your real estate transaction, will cover the cost of many repairs or replacement systems to your home. From water heaters to septic systems, to central air and heating, the Home Protection Plan covers repairs to a home while it’s on the market and for a specified time after the close of the sale.
To lessen the stress of selling a home, and for peace of mind that comes with a home warranty, it makes perfect sense to call your Coldwell Banker agent today for more details. Click here to contact us about Coldwell Banker’s Home Protection Plan coverage.
