Possession
Typically you’ll possess the home on closing day. You can start moving in that night or in a month, up to you but you’ll be making the mortgage payments so may as well get on it!
Deposit Your Earnest Money
EM is Typically 1% of Offered Price Due From You to Escrow within 2-3 Days of Pending Date. If we end up closing the sale, these funds are wrapped into your closing costs (down payment etc) but if we back out using a contingency you’re fully refunded.
Pending
“Pending” means we have a purchase contract but there are contingencies that have to be satisfied the sale closes and you legally own the home
Inspection Contingency
During this phase we order inspections, contractors bids and canvass the neighbors to ensure they’re not crazy. Consider it a “Get Out of Jail Free” card; its buyer’s sole discretion which means we can use the inspection to back out without giving cause. Once we waive this contingency you are committed to the sale unless there is another contingency in place
Financing Contingency
This clause protects you in case for some reason you become unfinanceable before the sale closes e.g. losing your job.
- If buying cash, the buyer has to provide evidence of funds within 3 days of pending.
Other “Buyer’s Sole Discretion” Contingencies
This means you can back out with no justification;. Examples are Well, Septic, Leased Property and Homeowners Association contingencies. Seller delivers reports on these things to us which can then play and move forward or back out regardless of the results. Even if the septic report comes back good you can still legally disapprove it and back out.
