Within the Contract to Buy and Sell are deadlines that will be determined by the Buyer making the offer, and negotiated or accepted by the Seller. This document will act as a tool for both Buyers and Sellers to break down the deadlines in the contract. By understanding these deadlines, you will understand a majority of the contract. Note that all of the following deadlines may or may not be used depending on the real estate transaction, as all transactions are unique to the Property to be purchased.
The Contract to Buy and Sell real estate will be used when it comes time to make an offer on a home. Although it’s a 19 page long contract – don’t be overwhelmed. Your real estate agent will help you stay on top of deadlines to ensure a smooth real estate transaction. It is also highly recommended that you discuss the contract with your attorney and/or your tax advisor.
Item #1 – Alternative Earnest Money Deadline
This deadline within the contract is the date that your Earnest Money deposit must be turned in to either the Brokerage or Title Company. The amount of earnest money needed is determined by the Seller when they list the home. As your agent, I will let you know the earnest money deposit needed for all properties that interest you.
Item #2 – Record Title Deadline
This is the deadline in which the Title Company must provide the Buyer, a present-day commitment for an owner’s title insurance policy. The documents will consist of copies of any plats, covenants, declarations, conditions & restrictions burdening the property as applicable to the property to be purchased. Additionally, copies of other documents listed in the Schedule of Exceptions in the Title Commitment that was furnished to the Buyer may also be provided.
Item #3 – Record Title Objection
This deadline allows the Buyer to object to the Record Title Deadline. The objection is made in the Buyer’s sole discretion based on any unsatisfactory title condition.
Item #4 – Off-Record Title Deadline
On or before this deadline, actual copies of all existing surveys in the Seller’s possession pertaining to the Property must be provided to the Buyer. If the Seller has known knowledge of any liens, easements, or other title matters not shown by public records they must disclose these to the Buyer by this deadline.
Item #5 – Off-Record Title Objection
This deadline is similar to the Record Title Objection. The Buyer can object and terminate the contract if unsatisfied with documents provided in item #4.
Item #6 – Title Resolution Deadline
The date on which all title objections must be resolved.
Item #7 – Right of First Refusal
This date applies when an outside entity, like an HomeOwners Association (HOA), has to approve a Buyer’s contract. If the outside entity who holds this right, disapproves of the contract, the contract must terminate.
Item #8 – Association Documents Deadline
This is the deadline in which the Buyer must receive all up-to-date HOA documents. The Listing Agent or title company will often handle the delivery of these documents for the Seller, although it is the sellers responsibility to ensure all documents are provided to the Buyer. As a Buyer it is importance for to review the documents in detail to ensure you are agreeable to the restrictions and covenants laid out by the association. Some important details to look for are restrictions on pets, landscaping requirements, any addition or design review process, and parking. Another important thing to look at is the reserves to ensure that the HOA is in a position to afford future improvement or repairs to the community.
Item #9 – Association Documents Objection Deadline
The Buyer has the right to terminate on or before this deadline, based on any provisions in the HOA documents provided that the Buyer deems unsatisfactory.
Item #10 – Seller’s Property Disclosure Deadline
Sellers often complete this document before listing their home for sale and the document can be found through the Multiple Listing Service on which the property is listed. If the Seller’s Property Disclosure is made readily available it can be beneficial to review it prior to making an offer. This disclosure documents any issues or improvements that the Seller’s have knowledge of pertaining to the Property. This disclosure cannot be objected to as the Buyer will have an opportunity to conduct their own inspections of the property.
Item #11 – Loan Application Deadline
If a Buyer is obtaining financing for the purchase of the home, then the Buyer has likely gone through this process before submitting the offer. This deadline marks the date in which the Buyer must have a fully completed loan application submitted to the lender of choice.
Item #12 – Loan Objection Deadline
Upon this deadline the Buyer must determine, in Buyers sole discretion, whether the new loan and the loan details, including payments, interest rate, terms, conditions, and cost are satisfactory to the Buyer.
Item #13 – Buyers Credit Information Deadline
In the case of the owner (seller) carried financing, this deadline marks the date the Buyer must supply the Seller with financial documents.
Item #14 – Disapproval of Buyer’s Credit Information Deadline
This deadline is the Seller’s opportunity to decline the Buyer based on the buyers credit and financial information that was provided.
Item #15 – Existing Loan Documents Deadline
This deadline is only applicable for assumptions. By this date the Seller must provide all current loan documents to the Buyer for review.
Item #16 – Existing Loan Documents Deadline
Once the Buyer receives and reviews the Seller’s current loan information , the Buyer will review the loan details and can then accept, object or decline.
Item #17 – Loan Transfer Approval Deadline
This deadline applies to the lender who is approving the assumption and only applies to loan assumptions.
Item #18 – Seller of Private Financing Deadline
If any or all of the financing of the transaction is funded by private or seller financing, this deadline will apply. The Buyer must decide if the financing being offered is acceptable by this date.
Item # 19 – Appraisal Deadline
This is the date in which the Buyer must receive an appraisal of the property. This does not apply to VA loans.
Item #20 – Appraisal Objection Deadline
Either the appraisal comes in at or above the purchase price or it doesn’t. By this deadline, the Buyer must submit in writing that the valuation is less than the purchase price. If the home does not appraise at or above the purchase price there are options that should be discussed with your agent.
Item #21 – Appraisal Resolution Deadline
If an objection is made regarding the appraisal, the objection must be resolved by this date or the contract terminates.
Item #22 – New ILC or New Survey Deadline
An Improvement Location Certificate or Survey is typically ordered if the lender or title company if they require it. It can also be ordered by the Buyer if there are questions as to where the property lines are. The Buyer must receive either document by this date.
Item #23 – New ILC or New Survey Objection Deadline
The deadline when the Seller must receive a written description of any matter that is unsatisfactory based on the new ILC or Survey and the Buyer requires the Seller to correct the issue.
Item #24 – New ILC or New Survey Resolution Deadline
If there is an ILC or Survey objection, the matter must be resolved by this deadline or the contract terminates.
Item #25 – Inspection Objection
The Buyer must have all home inspections completed by this date. Seller must receive a written description of any unsatisfactory physical condition that the Buyer requires the Seller to correct.
Item #26 – Inspection Resolution Deadline
If an objection is received by the Buyer, the Seller has until this date to respond in writing, addressing the Buyers repair requests. The Buyer has to agree to the terms or the contract terminates.
Item #27 – Property Insurance Objection Deadline
Prior to this date, the Buyer can.obtain as many bids as they’d like for homeowners insurance. If the terms of cost of the insurance does not meet the Buyers satisfaction, they must terminate in writing by this date.
Item #28 – Due Diligence Documents Delivery Deadline
If the box is checked, the Seller agrees to deliver copies of the requested documents pertaining to the property. This can include any leases, completed contract work, warranties, permits, etc.
Item #29 – Due Diligence Documents Objection Deadline
If the Due Diligence Documents are not supplied to the Buyer or are unsatisfactory, the Buyer can terminate or Object. If the Buyer Objects, they must deliver a written description of unsatisfactory documents that they require the Seller to correct.
Item #30 – Due Diligence Documents Resolution Deadline
If there is a Due Diligence Document Objection, the issues must be resolved by this date.
Item #31 – Conditional Sale Deadline
This deadline indicates that the Buyer must sell a property before they can complete the purchase, that property will be listed here. If it is not sold and closed by this date the Buyer may terminate the contract.
Item #32 – Closing Date
This deadline indicates when the Seller delivers the deed to the Buyer. The hour and place will usually be determined by all parties. The designated Title company will often assist with the coordination of this date.
Item #33 and 34 – Possession Date and Time
Typically this deadline will occur at closing. This deadline marks the point in which the Property is made available to the Buyer. The Buyer will get keys and the Seller is no longer allowed access to the property.
Item #35 and 36 – Acceptance Deadline Date and Time
This deadline indicates the day and time in which the Buyer requires the Seller to respond to their offer for the purchase of the Property. If the Seller wishes to counter, a new deadline will be established on the Counterproposal.