Purchasing Your First Home

STEP 1: Both the buyer and seller sign the standard real estate contract discussed below (aka the offer). (The real estate broker has standard document). Once it is signed, then your attorney get involved. The attorney has three days to initiate what is called the “attorneys review.” In this review, both the buyer’s and seller’s attorneys inform each other what they want to incorporate or exclude in the “offer” AND the official contract is drafted and finalized.

The standard real estate broker “offer” is NOT the official contract. This “offer” serves the purpose of starting the process for the real estate closing. Both the buyer and the seller sign this document to officially start the process of closing the deal. After this offer is signed, the buyers and sellers attorney draft a new and official contract thereafter. Overall, this standard “offer” does protect the buyer; however the sellers attorney will probably want to exclude such protections, especially if it is a bank. The provisions in the offer shall be negotiated between the parties. 

STEP 2: After the attorney review phase is over and both parties agree to the official contract terms, home inspections and surveys of the property occur which is paid by the buyer. Home inspections include general inspections, radon, termite, tank sweeps, pool (if any), and septic. 

STEP 3: Next, a title company gets involved. This is usually paid by the buyer, and in some circumstances the seller. I work closely with a title company as well. The title company reviews title to insure the property does not have any liens, mortgages, judgements, or encumbrances. It also issues insurance policies and records paperwork (in case there was lien title insurance protects buyer)

STEP 4: Then, in certain circumstances if a mortgage company is involved, they issue a commitment letter after providing an appraisal. 

STEP 5: Finally, there is a closing date set, and the buyers attorney appears with the relevant paperwork, the seller, and the buyers  to close the deal.