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From Acceptance To Closing

The period of time between Offer acceptance (thus creating a contract) to the closing date is filled with many different facets, persons and tasks that determine if, and how smoothly the transaction will be completed. Both Buyer and Seller have responsibilities during this period. As your Seller’s Agent we will assist you throughout to help you to meet these responsibilities.

The Home Inspection

The Buyer or the buyer’s lender will usually request a home inspection (at Buyer‘s expense). Home Inspectors are licensed by the State of North Carolina to professionally perform their duties. The inspection is a thorough and detailed inspection of the entire house including structural integrity, the electrical, plumbing, heating and cooling, appliances, etc. Disclosure and discovery are fundamental in this phase of the process.

On completion of the home inspection, the inspector will deliver a copy of his/her report to the Buyer. After review with their agent the buyer will put into writing for you a request for repairs utilizing the standard NC Real Estate Commission Repair Request Form. You can then agree, negotiate, or disagree to some or all of the requests. We will review with you what these possible options may or may nor mean to you regarding the transaction process, and what your options are.

The Wood Destroying Pest Inspection

Wood destroying pests are prevalent in the southeastern United States, so North Carolina is no exception. Termites are the most common pests. You may or may not have a termite bond which is a contract with a licensed pest control company to regularly inspect a home, and preventatively treat it for termite infestation.

Whether bonded or not, buyers and lenders usually require that a licensed pest control company inspect the prospective home to determine if infestation of any kind is present, if treatment is needed, or repairs are needed. If infestation is discovered, or if there is damage due to a past infestation, the Buyer will put into writing to you the treatment and/or repair requests to remedy the situation. Also, we will negotiate repairs, with and for you, if necessary, with the Buyer. We will make sure you understand your options according to the contract related to wood destroying pests related to treatment and repairs.

The Property Survey

Some, but not all lenders require a survey. Buyers may order a property survey by a licensed surveyor. This gives accurate information related to property lines, and lot size. Also, it will identify any possible encroachments, set-back violations, etc. that may impact the property.

Working with your Attorney

In North Carolina, your attorney performs critical duties and responsibilities related to the your chosen property, and in closing the transaction. Your attorney will prepare the following for and with you:

A deed, as the effective instrument to transfer title to the buyer
An affidavit as to Mechanic’s Liens that no services, labor or material have been provided within 120 days of closing; and if so, that vendors or claimants have been paid in full with a signed paid receipt, or that the vendor has waived, in writing, his lien rights to file a claim (the buyer’s attorney, on the day of closing, prior to recordation, will check to see if there are any new liens on the property).

You will need to provide to the Buyer‘s attorney (as applicable):

Approval from your lender to provide the pay-off for any outstanding balance on your mortgage to the buyer’s attorney so that the balance can be paid off at closing from proceeds, paid out from the attorney’s trust account.
Any leases and other related documents (if applicable), and the names and status (lease terms, payments, deposits etc.) of the tenants.
Written proof of repairs agreed to earlier in writing between buyer and you.
A bill of sale, if needed, for the personal property included in the OTP/C.

Buyer’s Attorney

The buyer’s attorney determines that you have marketable title; renders a title opinion for the buyer’s Title Insurance company; assembles and prepares documents for the closing meeting; conducts or oversees the closing meeting; and records the deed after closing.

To determine marketable title the buyer’s attorney does a title search through the Register of Deeds Office in the county seat of your property’s location. The title search entails following the historical chain of conveyances of at least 30 years to determine if the title is free of encumbrances, liens, assessments, easements, or any instrument of trust. Most lenders require title insurance, and if the title is clear the attorney will render a title opinion to the Title Insurance Company which forms the basis of their respective insurance policies.

The buyer’s attorney will receive a lender’s closing package which has all of the documents related to the loan and closing transaction that meets lending requirements, and all pertinent federal and state laws. The closing attorney will prepare the documents in the lender’s closing package for the closing meeting.

The attorney, after receiving the lender’s closing documents, will prepare a HUD-1 Form. This is the standardized form instituted and required under the Real Estate Settlement Procedures Act (RESPA - 1974). This becomes the closing statement at the closing meeting which documents all of the financial debits and credits related to the sale and purchase of the property. Both seller and buyer interests are represented in the document, and both seller and buyer sign after review and approval. In addition, we will make sure that you receive a signed copy of the HUD statement at the closing meeting, and/or immediately after recordation. This is in addition to the copy you will receive in the final closing packet from your attorney.

Scheduling the Closing

The scheduled time and date for closing specified in the contract is usually set well in advance after consultation with buyer and seller, lender, attorney, and real estate agents.

All parties are committed to meeting the target date and move forward in good faith to meet that deadline. Closing is usually scheduled on, and can be scheduled before the contract date. However, this date is not set in stone, unless it is specifically written in the contract that “time is of the essence” with regard to the closing date. We do not recommend (but will do so at our client’s request for given circumstances) inserting this language into the contract, except under extraordinary circumstances. Why? The “time is of the essence” language sets the date in concrete that literally “kills” the contract, if closing does not occur, unless both seller and buyer agree in writing to extend the contract beyond that date.

Sometimes factors and events intervene that are beyond either the seller’s or buyer’s control. The capriciousness of nature, unexpected delays of the lender and/or underwriter in getting the closing package to the closing attorney, scheduling conflicts among the parties, delays in completing repairs, time needed by Buyer to finalize financing arrangements, etc are all examples we have encountered for delays. Please know that as long as the parties continue to go forth in good faith to close the transaction within a reasonable amount of time beyond the contract closing date, the contract remains intact and enforceable.

The Final Walk-Through

Usually, on the date of closing, the buyer will schedule a “walk-through” of your property. This is to confirm the home and property’s condition. When closing occurs, the buyer accepts the home in it’s current condition at that time.

Seller Possession After Closing,
and Buyer Possession Before Closing

Either one of these options has to be agreed to in writing by both Seller and Buyer. The form for the Buyer is “Buyer Possession Before Closing Agreement” and the form for the Seller is “Seller Possession After Closing Agreement.“ These agreements set forth the conditions, and financial arrangements for the specified time for possession. Please note that either form cannot be used for possession for more than 7 days. Otherwise, a standard lease agreement will need to be entered into by both parties for their protection. If the occasion arises for either option to be considered or utilized, we will fully review the provisions of the form with you, so that you can make a decision as to how or whether you want to enter into the agreement with the Buyer.