If you are Buying Barrington IL Real Estate - as your Barrington Illinois Buyers Agent I will be writing your offer. Page two deals with closing, disclosures and Attorney review.
If you missed my introduction read it here: Buying Barrington Illinois Real Estate - Is Your Barrington IL Realtor Fully Explaining The Purchase Contract then
Page one dealt with the property you wish to make an offer and how much you want to pay.
Page 2 of our purchase contract first deals with closing and then possession of the home you want to buy. The first thing to decide is a closing date you would like. We must factor in how long it will take to:
- Secure your mortgage or gain access to your funds
- Weekend, holidays or other days when it would be very inconvenient for you - family vacation etc.
- Sale and close of your existing property
- Sufficient time for the seller to move out - I will often talk to the listing agent about the sellers flexibility before we write the offer.
If you read the paragraph following the date you will notice that this date can be changed if both sides agree in writing. This may occur for a number of reasons but most commonly your mortgage finance is not ready or a home close of the buyers (you) has been delayed. Closing will take place at an office of the Title Company that is providing the Title Insurance Policy and should be close to the property or as agreed usually by the attorneys.
What is a Title Insurance Policy for? Simply a policy that guarantees your title to the house in the event of something being found out later, that was not discovered before closing. The seller will buy and pay for your policy - nice! If you are getting a mortgage you are going to buy a policy to cover the mortgage for the lender - seems fair. Everyone is protected.
Paragraph 6 simply says that possession of the property will be given to the buyer at closing - unless sated differently later in the contract. It is normal to get your home at closing.
Paragraph 7 deals with the disclosures. All home owners must complete disclosures when they list the home for sale and these are provided to you. (The only exclusion is bank owned homes - clearly the bank could not answer any of the question so they are not completed). You can submit your offer without the disclosures but they must be provided to you if a contract is agreed upon as they form part of the contract. You must understand and agree to the content of the disclosures for the contract to be fully valid and proceed. As your Realtor I prefer that we see them before submitting an offer. It is easy for me to get them.
Paragraph 8 deals with expenses or paid items that are attached to the property. Real estate taxes are the biggest cost item here and are paid a year in arrears. Because the taxes for this year are not calculated until next year we commonly ask for 105% to 110% of this years amount to cover the increase. If there are condo dues or other unpaid bills these should all be paid up to date at closing - your attorney will ask for a statement to show special tax assessments or condo dues are paid to date. The seller agrees to pay any final utility bills.
The last paragraph on page two deals with attorney review. There are 4 options and your Realtor will explain the differences as 2 are very close in meaning. Simply your attorney will review the agreed and signed contract and he must do this within 5 business days of the date you all signed it. If there are changes he/she wants, they must be communicated to the sellers attorney within those 5 days. As your Realtor I make sure your attorney gets a copy of the contract as soon as possible.
There is one item on the contract that he cannot ask to be changed and to you this is very important. He cannot request a change in the price you and the seller have agreed.
As on page one you will initial the bottom of the page which also shows the property address. You'll see there are very few blanks to be filled in on this page.
Thanks for reading this weeks episode - Your Barrington Buyers Agent will return soon for page three. In the meantime it looks like we will be having a white Christmas this year - my favorite. Happy Christmas to all.