Your Offer Has Been Accepted! Next Steps... The First 10 Days
These articles are intended to have information for the benefit of all my clients on a number of different topics. Today’s topic - Next steps after your offer has been accepted. These steps can vary greatly for each scenario based on the terms of the Purchase and Sale Contract (Offer). When you work with me, as your Realtor, I will provide you a checklist/calendar of your deadlines and keep you updated every step of the way so that you understand your deadlines and know what to do. Having this information before making the offer (now) is helpful so that you know what to expect. Whether it’s your first or tenth home - it is important to have checklists or a calendar of deadlines from your Realtor, Escrow, and also from your Lender for the closing period. ** The information below is just an example showing some of the steps. Every time you buy or sell a home, I will keep you on track with your next steps.
Together we have found the perfect home and your offer has been accepted. Congratulations! The date the offer is all signed around and agreed upon is called Mutual Acceptance. Now the deadlines can be calculated based on this date. ** This is an example only! Every transaction is unique and as your Realtor, I will make sure you know your deadlines and next steps.
Within 24 hours after of Mutual Acceptance:
Email copy of the purchase & sale agreement to lender & escrow. (Jen’s Realty will do this)
Order Title (Jens’ Realty will do this)
Some deadlines could start before Mutual Acceptance** Some review periods begin as soon as documents are received. While the Purchase & Sale Agreement may state a deadline later, the Seller can choose to provide these documents up front so the clock starts ticking on these deadlines as soon as they are received. For example, some of these are:
Form 17 - Buyer has 3 days to review
Resale Cert - Buyer has 5 days to review
Title - Buyer has 5 days to review (or whatever is stated on Form 22T)
Within 48 hours after Mutual:
Deliver Earnest Money check to the party noted on the offer (usually Buyer Broker’s office or Escrow). This check will be deposited right away and held in a trust account. This money will be applied toward the closing costs & down payment. If the offer is terminated for a legal reason (within the contingency periods), and Buyer and Seller acknowledge it, the Earnest Money can be returned. (Jen’s Realty may help with this or some Escrow companies have a courier they can send) ** If considering wiring funds - use caution and follow protocol by talking with a live person at Escrow to verify and avoid Fraud Theft.
Not necessarily a deadline - but strongly encouraged to:
Begin neighborhood review to make sure you like the area, pay attention to noises, smells, commute times, and all aspects. Read my blog - “Don’t Just Inspect The Home - Inspect The Area”.
Schedule the Home Inspection and consider whether or not you would also like a Sewer Inspection, any bids for repairs or other work for now or in the future. (Jen’s Realty may help you with this.)
Send Escrow all your contact info
Within 3-5 days (depending on what it says in the Purchase & Sale Agreement).
Complete steps for Loan Application with the Lender (As described on form 22A).
It is important for you to be available and responsive during the closing period - checking your mail, email, and phone messages. If you haven’t prior to your pre-approval, you will need to provide all the info your Lender needs for the Underwriter to review. It is important to meet this deadline, as the 22A - Financing Contingency protects your Earnest Money if the financing isn’t available for some reason.
Insurance application deadline
Within 10 days (depending on what it says in the Purchase & Sale Agreement).
Complete the Home Inspection and submit the 35R Inspection Response form to the Seller to tell them if the inspection response is: a) Approved & proceeding as is, b) Disapproved and terminated, c) Giving notice of Additional Inspections or d) Buyer requesting modifications.
Information verification period (as stated in section “w” of the Form 21 P&S) - see photo below
If purchasing at a Condo - Resale Certificate could be due at this time (or sooner depending on the terms of the P&S (P&S = Purchase and Sale Agreement or Offer or Contract).
If purchasing at an HOA - If the box is checked on the 22D for Association Documents could also be due now.
As each of these tasks is met - new deadlines may be added. For example, when the Inspection Response is delivered to the Seller. The Seller then has 1, 2, or 3 days (whatever amount the P&S states) to respond to agree or counter the terms. Review periods are triggered when documents, such as the Resale Cert or HOA docs are received. When it comes to a real estate Purchase & Sale Agreement, deadlines are calculated using the “Computation Clause” (paragraph “l” of the P&S) - see photo below. ** No worries - I will help you through a stress-free and well-informed transaction, updating you with deadlines and next steps from start to finish.
Buying and selling homes is a very complicated process. It is important to work with an experienced and competent Realtor with solid communication skills and systems in place to assist you through the closing period. These are just some of the steps that will happened during the first 10 days. I will write a separate article about the timeline of events after the home is past the Inspection period.
As always - your questions, comments, and suggestions are welcome for this article or future topics you would like to hear about. I am available to talk one-on-one with you, answer your questions, and as your Realtor, guide you through the process.
Thank you! Jennifer Suemnicht - Jen’s Realty - RE/MAX Metro Realty, Inc.