The Real Estate Transaction from Start to Finish
1. The Offer to Purchase
2. Home Inspection
3. The Purchase & Sale Agreement (the “P&S")
4. Pre-closing Preparation
5. Closing
The preceding is an outline of the typical residential real estate transaction. While additional steps (e.g., executing an extension to the P&S) may be necessary, this outline provides a guide to the process and should facilitate an ongoing conversation between you and your real estate attorney as you move through the process.
In many transactions, the real estate attorney is not retained until after the Offer to Purchase has been accepted. However, the Offer to Purchase may very well create a binding contract between Buyer and Seller and therefore it would be prudent to involve your real estate attorney in this critical first step.
While the home inspection is generally coordinated by the real estate agent, you will want to provide a copy of the inspection results to your real estate attorney, who will incorporate any key issues identified by the inspection in the P&S.
The P&S is a more formal agreement between Buyer and Seller outlining the terms of the Buyer’s agreement to purchase the property and the Seller’s agreement to sell said property. Your real estate attorney will draft and negotiate the terms of the P&S. In addition, you should expect your attorney to explain in layman’s terms the obligations and rights created by the P&S. This open dialogue is key to managing expectations throughout the process.
Pre-closing activities include obtaining the pay-off statement from the Seller’s lender, ordering the Municipal Lien Certificate, examining the title, securing a 6(d) Certificate (if the property is a condominium), and drafting the deed.
At closing all of the documents required to complete the transaction are executed and witnessed. Regardless of whether you are the Buyer or Seller, your attorney should review the Settlement Statement with you in advance of the closing, if possible. This will ensure that all of the parties are on the same page and that the Buyer is aware of the exact dollar amount necessary to close. While the closing attorney, who represents the lender and possibly the Buyer as well, will review the various documents, be sure to consult with your attorney should any questions or issues arise during the closing. Following the closing itself, the closing attorney will record the documents.
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DISCLAIMER
The information contained herein is for informational purposes only and does not constitute legal advice. Your receipt of this information is not intended to create or establish an attorney client relationship.