Here are the different steps in a typical purchase and sale of residential real estate.
You should retain an experienced real estate attorney before you sign any documents regarding the purchase and sale of real estate.
Offer and Acceptance
The Buyer makes an offer and the seller rejects the offer, makes a counteroffer, or accepts the offer. If the Buyer and Seller reach an agreement on the sales price, they sign a document called an Offer or Contract to Purchase.
Purchase and Sale Agreement
A Purchase and Sale Agreement is prepared, reviewed and usually revised by the Seller and Buyer and, if agreeable to the Seller and Buyer, they sign the Agreement. The Purchase and Sale Agreement contains several important provisions including the sales price, closing date, that good title is delivered, and it is usually contingent on the Buyer obtaining financing by a certain date and a satisfactory inspection.
Buyers usually take a loan out from a lender to buy real estate. The lender then retains an attorney to represent it. The lender’s attorney will perform a title search (to make sure there are no title issues such as outstanding liens), obtain a plot plan (to make sure there are no boundary or set back issues), and obtain a municipal lien certificate (to determine what real estate taxes are owed).
The Seller must obtain a smoke detector and carbon monoxide alarm certificate from the fire department. In addition, the Seller must obtain any water and/or oil readings and prepare a deed.
The lender and its attorney will prepare the closing documents to be signed by the Borrower and Seller at the closing. One of the documents prepared by the Lender is a Closing Disclosure Statement which contains all numbers connected with the closing including the sales price, any costs, the amount the Buyer is borrowing, the amount the Buyer needs to bring to the closing, and the amount the Seller is to receive. The Seller must bring the deed and smoke detector and carbon monoxide alarm certificate to the closing.
The lender’s attorney will have a final title rundown performed at the registry of deeds. If there are no liens or title defects found during the rundown, the deed, municipal lien certificate and mortgage will be recorded and the transaction will, at that point, be completed. The Buyer and Seller will be informed that the documents were recorded.
Call Now For A Free Consultation
If you are buying or selling a home, contact Attorney Bob Allison for a free telephone consultation at 978-740-9433.