• Seller’s promise to give clear title to buyer; • Target closing date; • Earnest deposit associated with the offer, as well as method of deposit; • Disposition of earnest deposit if deal falls through or fails; • Plans for adjusting taxes, fuel, and water bills between buyer/seller; • Who will pay for title insurance, land survey, home inspections, etc.; • The deed to be granted; • State-mandated legal requirements; • Attorney review of contract; • Any disclosures; • The time after which the offer will expire. Something else to consider is contingencies. Many offers are made contingent upon a factor or event that must be resolved before the offer moves forward. The two most common contingencies are financing and home inspections. For financing, the offer is made contingent on the first-time buyer receiving a sufficient mortgage loan from their bank, or for current homeowners, contingent upon the sale of their home. For home inspections, the offer is made contingent upon a satisfactory home inspection report.
STEP 8: PUT MONEY IN ESCR Y IN ESCROW
Part of the home-buying process involves putting money into escrow; the buyer is expected to put money into escrow in order to make the contract binding, which then helps the contract move through and toward closure. A lot of people, both buyers and sellers, are confused about what 9
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