Making an Offer: Attention to Details
The options available to both buyer and seller should either party default
Your offer contract should also contain important protective and escape clauses making the entire agreement subject to, or contingent on, their fulfillment. Here are some key “subject to” clauses and useful contingencies to think about:
Earnest money: Ensure that your earnest money will be deposited in a trust account or with a neutral third party. Such as a title company, escrow service or attorney acting as an escrow agent. If you’re putting up a large earnest-money payment on Chesterfield County real estate, stipulate that it can be held in an interest-bearing account and that interest earned will be credited to your side of the ledger at settlement.
Return earnest money: Set out any conditions for return of your money, including how quickly you’ll get it back if the offer expires or you withdraw it, or if for some reason, the seller decides not to sell.
Deed and title condition: Your offer should state the type of deed and condition of the title you’ll accept from the seller. Your contract should also make clear what actions the seller must take to deliver a good title by settlement, and what recourse you have should that not occur.
Financing: Make your offer contingent on getting a written loan commitment within a specific time and at terms agreeable to you.
Seller financing: The terms and conditions of any seller financing should be fully and exactly set out in the contract.
Settlement date and possession: The sale should be made subject to a settlement date and when you will be entitled to take physical possession of your new Chesterfield County real estate. Settlement usually correlates with the length of time that’s required for a title search and mortgage approval- typically 45 days to 60 days. Possession usually occurs immediately after settlement.
Settlement agent: The contract usually specifies the attorney or title company that will perform final settlement services.
Your realtor can help you every step of the way so your offer is strong and protects you- So if you are actively seeking your new A-May-zing home and need to get ramped up, team up with a knowledgeable realtor that works for you!
Please contact us if you have any questions or comments.