6. Manage a successful settlement
Getting to a ratified contract is a major milestone in the process, but there are many steps to go for a successful sale. Getting through the contingency period can be a frustrating time if these items are not discussed during contract negotiations. If you know many repairs will be necessary, then set some money aside for these. Better yet, take care of these before you put it on the market. Is your condo priced higher than comparables? You might run into problems with appraisal issues and should consider this when you accept an offer. We have the experience to get you through these and to a successful settlement. Some of the more important contingencies that are common in contracts written in this market include:
Financing contingency - Lending practices have got a lot stricter over the past few years. Although the burden is primarily on the buyer, being responsive to lender requests.
Appraisal contingency - Appraisal rules have changed along with lending practices and the quality of appraisals has suffered as a result of some of the changes.
Home inspection contingency - Small repairs shouldn't be a deal breaker and major repairs should not be a surprise.
- Condo doc review period - Rarely does a buyer back out of a contract because of something they found in the condo docs, but they don't need to give a reason to cancel during the review period.
Settlement, also known as closing, is when the actual transfer of ownership takes place. Typically, the meeting will take about an hour, but always be prepared for it to go longer if any issues arise or there are problems with documentation. The seller(s), buyer(s), their agents and the settlement agent will usually be in attendance, although it is not uncommon for the seller to sign their documents ahead of time. The money to purchase the property will need to be in the form of a cashier's check or wired ahead of time to the settlement company. At the end of the meeting, the buyer receives the keys to the property and becomes the new owner.
This short seller's guide cannot answer all your questions. If you have specific questions, don't hesitate to contact us.