Most Commonly Asked Questions From Potential Real Estate Buyers

As the real estate market continues to change and develop, the following are some of the most frequently asked questions of me by Buyers:

1. My contract says the attorney review period is three days. Why am I still in attorney review a week after I signed the contract?

The attorney review period runs from the time both parties have signed the contract. If you signed the contract on a Sunday and the Seller does not sign for several days, attorney review does not start until the contract is executed by both parties. At that time, your realtor will forward to your attorney and then your attorney will have three business days to either approve the contract or send out a disapproval letter. This letter will be in the form of a Rider or letter addendum disapproving of the contract in its present form, but stating it will be acceptable with a number of additional provisions. Once the disapproval letter is sent out, attorney review is automatically extended until both parties come to terms. The three day period is only for one of the parties to object to the contract. As negotiations continue, attorney review can last one day or several weeks. Usually, attorney review will last 3- 5 business days.

2. If I am buying a For Sale By Owner (FSBO) property and there is no realtor, what should I be aware of and who will prepare my initial contract?

For a FSBO property, the Seller's attorney will prepare the initial contract and will forward directly to your attorney. There are a few issues you should resolve with the Seller before the Contract can be prepared.
a. The purchase pric
b. The deposit you will put down after attorney review and at closing and your mortgage amount
c. Date of closing- closings will generally take 30- 40 days from the end of attorney review, mainly due to your lender's requirements. That is the time frame that they will need to process your paperwork and conduct an appraisal. Make sure the closing date listed on the contract will give you sufficient time to get what you need done.

3. Why isn't my closing the date it says on the contract?

The date on the contract will likely change during attorney review depending on how long the process takes to get through that period. Normally, our office asks for 30 days for you to obtain a mortgage commitment and 14 days thereafter for you to close. Regardless, the closing date on the initial contract or agreed to during attorney review is only a target date. Unless your contract says it is time is of the essence (which is very rare), then your closing will be around that date- it could be a few days before if both parties are ready and agree or a few days after. Do not book movers until we set the closing date with you. The closing will not be set until your mortgage company CLEARS you for closing- meaning ALL conditions are met. This will not be until just a few days before closing.

4. When do I get my final figures for closing?

You will not have your final figures until day of closing. Unfortunately, you will not get the final amount you owe until right before the closing because a number of things must occur. First, your mortgage company must send us your package with the final figures. We rarely get this before the day of or day before closing. Then, we prepare the HUD1- closing statement which must be approved by your lender and the seller's attorney. We get both approvals and then send to you. Sometimes this is very last minute. While it may be inconvenient for you, the only thing you can do to speed up the process is ask your mortgage company to send out the package/figures to us earlier.


5. What form of payment is acceptable for my deposits and final check for closing?
DEPOSIT DUE AFTER ATTORNEY REVIEW- PERSONAL CHECK
Your deposit due after attorney review will be a personal check. Usually it will be due within a few days after attorney review is completed, so make sure if you have to move monies between accounts, that you will have it done in time. We recommend sending your deposit by certified mail or overnight delivery, so you will have a confirmation of receipt. The Seller's attorney does not generally provide confirmation of receipt and they may take several days or a week or two to deposit. Check with your bank to see if it clears. There is no special time frame in which the Seller's attorney must cash the check.

CHECK DUE AT CLOSING- CERTIFIED CHECK
When we call you on the day of closing and advise you the final amount you need to bring, you must provide a cashier's or certified check made out to Julie O'Donnell Attorney Trust Account. The funds must be immediately available. A personal check cannot be accepted as it can bounce. If you use a Credit Union or internet bank, make sure you will be able to get the funds in time or that they can send our office a wire. You don't want to have to drive through the night to Ohio like one client I had to go to the only branch and get the certified check.


THE ABOVE DOCUMENT WAS PROVIDED FOR INFORMATIONAL PURPOSES AND CANNOT BE CONSIDERED LEGAL ADVICE.

Please contact our office at 201-653-8535 for more information.