WHAT TO EXPECT WHEN I GET A CONTRACT ON MY PROPERTY
In paragraph 1 of the contract right after the address of your property the contract states in addition to the personal property agreed upon at the time of the listing the following items will remain and will convey with the sale: fixtures located thereon including without limitation, blinds, ceiling fans, curtain rods and brackets, built in dishwasher, door knockers, garage door openers and controls, gas fireplace logs and inserts, installed floor and wall coverings, installed mirrors, light fixtures, mailbox and post, built in range, shades shrubs, exterior plants and trees, shutters, smoke and heat detectors, storm windows and storm doors, switch and receptacle covers, television antenna(e), window screens and screen doors. Meaning all of these items will convey to the new owner when your property closes. After listing your property these items may not be removed.
Paragraph 2: All personal property that will convey with the sale will be listed. This includes things like appliances, window treatments etc that have been agreed to by the sellers at the time of listing.
Paragraph 5: Purchaser agrees to make written loan application within 5 business days of acceptance of the contract.
Paragraph 8: Determines where the settlement will be. This paragraph also says the closing will be on or about _________ date. Possession of the property will be given to purchasers at settlement. Sellers will bring all keys and garage door openers to the settlement. Whatever date is in this paragraph will be the targeted settlement date. Please note the contract does say ON OR ABOUT. We try to maintain the date as written in this paragraph but occasionally it may vary by a few days as there are several people involved in a successful closing including sellers, purchasers, realtors, lenders, appraisers, home inspectors, contractors, pest inspection and septic inspection professionals, insurance companies, underwriters, title policy agents and closing agents.
Paragraph 9: Seller will pay for the preparation of the deed conveying the property to the purchaser. Seller will pay a grantors (sellers) tax. The grantors tax is currently 1.00 per 1,000 of the sales Price of1.00 per 1,000 of the tax assessed value whichever is greater. All real estate taxes will be pro-rated as Of the date of settlement.
Paragraph 12: Seller will provide purchaser a wood infestation inspection and report dated no more than 30 days prior to the settlement from a wood infestation control company certified and licensed by the Commonwealth Of Virginia. Purchasers are committed to treat or repair up to a cost of 1000. if the inspection reveals wood destroying insects or damages caused by wood destroying insects.
Paragraph 13: Seller must provide a clear title conveying the property through a General Warranty Deed to the Purchasers. Purchasers attorney will do a title search to determine if the title is clear and transferable.
Paragraph 14: Sellers agree to deliver the property to purchaser at settlement in its present physical condition. Purchasers may conduct a pre-settlement walk through inspection to verify the condition of the property. This is usually done the day before or the day of the settlement. Sellers must leave the property in broom clean condition
Paragraph 15: If property is serviced by a septic system, well or spring water sellers must provide purchaser with a septic inspection and water test dated no more than 30 days prior to settlement. Sellers will provide purchasers with certification water is free of contamination and bacteria. And a certificate stating there is no evidence of malfunction or needed maintenance of the septic system.
Paragraph 16: Purchaser at purchasers expense may have a home inspection and radon test. Sellers are committed to pay up to 1000.00 for any repairs that may be revealed as needed by the home inspection. These repairs must be done by a licensed contractor. Also, if the radon level is over 3.9 pcil EPA recommends the installation of a radon mitigation system. The current cost of installing the mitigation system is ESTIMATED to range from 1500. to 2000. If you do not agree to install a mitigation system if the level exceeds 3.9 pcil you must disclose your property exceeds the EPA recommended level of 3.9 pcil. If the home inspection or radon test results are not satisfactory to purchasers they may choose to void the contract and will be refunded full deposit.
Paragraph 19: Mechanics Lien, you will be asked by the settlement agent if you have had any work done on the property in the last 90 days which has not been paid for.
Paragraph 22: If your property was built prior to 1978 you must provide purchaser with a signed lead based paint addendum. This is a form you will sign at the time of listing.
After the purchaser makes loan application the lender will order an appraisal. The lender nor the purchaser are allowed to choose the appraiser. The appraisers are in a data base from which they will be pulled when the lender orders the appraisal. It can take several weeks to get the appraisal done and submitted to the lender. Once the lender reviews the appraisal the loan file will then be sent to underwriters for final approval. Depending on they type of financing AND the lending institution this also may take a few weeks.
It is not recommended sellers move, sign a lease for another property or spend any monies for relocating expenses until we have final loan approval from the lender. Once final loan approval is obtained the lender will schedule the closing with the closing agent. The closing agent will deduct all of your selling expenses on the HUD (closing) statement. The closing agent will contact you a few days prior to settlement to obtain the account number for your current mortgage in order to obtain your payoff.
This check list is provided as a courtesy, not guaranteed to be accurate and does not include all of the details entailed in the process of selling a property but merely a condensed guideline
*Paragraph numbers in the above outline are based on the VAR standard contract of purchase.
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