Tips for First Time Home Buyers After a Contract Has Been Signed
For first time home buyers, reaching an agreement with a seller and finalizing a signed contract can bring a great sense of relief, and is something to celebrate! But between the time the contract is signed and the actual closing, a significant amount of work remains to be done, some of which is very time sensitive. Once the contract has been signed by both the seller and the buyer, the next steps for the buyer include:
1. Scheduling inspections, including but not limited to a general home inspection, a radon test and a pest inspection, depending on the specific property being purchased. Most standard real estate contracts allow for the buyer to take five business days to notify the seller of any defects revealed by the inspections, but in order to meet that deadline, the inspections should be ordered immediately after the contract is signed.
2. Proposing modifications to be made to the contract. Most buyers and sellers sign a standard form contract, which may require certain modifications depending on the particular purchase. Any necessary modifications are typically proposed by the buyer’s attorney to the seller’s attorney, and must also be proposed within five business days of the contract being signed.
3. If the property being purchased is a condominium or part of any type of homeowner’s association, specific documents must be requested from the seller’s attorney to ensure that the association’s rules are acceptable to the buyer and that there are no pending special assessments or back payments owed to the association by the seller.
4. Depending on the municipality that the property is located in, the buyer may be responsible for purchasing “transfer stamps” from the municipality prior to the closing.
5. The seller will provide a title insurance policy that should be carefully reviewed by the buyer and the buyer’s attorney to ensure that there are no possible liens or other title defects impacting the property.
The Kelly Law Firm represents many first time home buyers, and prides itself on handling real estate closings on time, with care, and with constant communication between the client and the attorney.