There are different factors that will directly or indirectly influence the process of buying or even selling residential properties that may also change as per the transaction timeline as well. If you are involved in real estate for the first time do not forget to ask your attorney as they will clearly give you instructions on everything.
Involvement of the real estate transaction timelines
Contractor negotiation
The terms of the contract are implemented as per the real estate contract involving both the buyer and seller equally. The buyer will tender the earnest money to the buyer and as soon as the seller accepts the agreement, then it is known as an effect which usually takes 3 to 4 months.
The review of the Attorney
After the effective date, they are given 5 business days upon to showcase the attorney’s review as per the contract agreed by either of them. While undergoing this process the buyer can request for inspection and can also extend the timeline for rectification or even cancel the contract which does not require any penalty and it takes two to three weeks upon the contract execution.
Mitigation
If there are any problems that take place during the process of inspection, then the buyer is completely responsible to ask for a mitigation. Once the damages are completely recovered, then the buyer can continue with the contract which approximately takes 1 to 2 weeks before the inspection.
Financing Date
The financing date will be declared only if the buyer is getting a mortgage in order to purchase the property called as a mortgage contingency date. If in case the buyer is not able to protect a mortgage containing reasonable terms then they can terminate it or even extend the contingency date that takes two to three weeks after the execution of effective date.
Ordering of title
In this difficult transaction timeline, the buyer’s attorney can introduce title regarding the insurance of the property. This is to know whether the property can be purchased without any legal issues and will take 3 to 4 weeks starting from the effective date.
Survey
The buyer can also request a survey in order to know the drainage system, setback lines, and many more. However, the buyer is responsible to pay for the survey charges and will take 2 to 4 weeks time.
Appraisal
The seller and the buyer have an equal responsibility to execute appraisal, which takes 2 to 4 weeks time in order to know about the value of the property. This is to ensure that the interest in the property is secured, and the lender will not pay more than that of the quoted percentage.
Closing
Right from the effective date, the process takes 4 to 10 weeks where the process of exchanging the documents will be commenced.
Recording of documents
This takes 2 to 4 weeks right from the closing time where the documents should be recorded under the administration of the recorder offices.
All being said, this is the complete timeline involved in buying or purchasing a property. However, the individuals should take care that each and every process is executed in a timely manner.
