Understanding the Under Contract Process.

The 'Under Contract' period, also often described as the escrow period, is the time from which a buyer or seller goes under contract through closing day.

The 'Under Contract' Timeline:

The 'Under Contract' period typically lasts around 30-45 days, but it can be shorter or longer. During this time, all the items outlined in the contract need to be completed to everyone's satisfaction. By the time you've entered this period, you and the seller have agreed upon the closing date and any contingencies. Every contract varies, but most include the following:

  • Inspection Contingency: This should be done soon after signing the purchase contract. If the inspection results are unsatisfactory, it might lead to cancellation of the contract.
  • Financing Contingency: After signing the contract, you have a window to secure funding. If, for any reason, you can't secure funding during this period (and the seller won't grant an extension), you must decide whether to remove the contingency or cancel the contract.
  • Title Clarity: Ensure the seller provides a marketable title. Review the title report with an attorney or title officer to avoid any ownership-related legal issues. Be aware of local and state property transfer ordinances, and make sure you and/or the seller are in compliance.
  • Homeowner's Insurance: You'll likely need this before the sale can close, especially with requirements like fire and earthquake insurance. Apply for insurance as soon as possible after signing the contract.
  • Utilities and Final Walk-Through: Contact local utility companies to schedule turning-on services for the closing date. Also, don't forget the final walk-through inspection. Make sure the property matches the contract so there are no surprises.

Navigating a real estate transaction can be really tricky! There's a lot of paperwork, deadlines, and moving parts. We want you to have the smoothest transaction you can imagine. So, we built a transaction coordination team. They are in your transaction from the moment your offer gets accepted, ensuring that everything is signed and delivered on time.

If you are still confused about any portion of the home-buying process, your team at Story Real Estate can help. Even if you're just trying to learn about home buying and don't plan to buy any time soon. Just reach out! We love hearing from you.

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