Tip for buyers - the contract

By
Real Estate Agent with Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com 10301213186

You sailed through the home shopping process. You were pre-approved, hired a buyer's agent and found your dream home. You obtained an accepted offer and you completed the inspection. The seller agreed to repair a few items and it is now time to get the contract signed. What does that really mean? How long might it take? What should you know?

 

 

The following describes the process for Orange County, New York. This process does differ depending on where you are purchasing your home.

 

After the inspection items have been discussed and it's time to get a contract signed, your agent will supply various documents to your attorney. Those documents might include a copy of the listing and the purchase offer. They might also include a Memorandum of Agreement which defines additional info such as attorney contact information and real estate license numbers. Your agent will also include a list of what was agreed to in terms of repairs. There may be other items supplied as well.

 

The listing agent will be sending the same information to the seller's attorney. Using those documents, the seller's attorney will draft a contract. Typically they use boiler plate contracts, changing or eliminating sections that do not apply. When completed, the contract will be forwarded to your attorney. In the past, this would be done by US Mail or overnight mail which could take additional time, but now of course, the contracts are typically emailed.

 

Once your attorney receives the contract, he will review it. Usually he will also prepare an addendum with additional buyer-related caveats. Sometimes the attorneys will discuss the addendum right away, which could add time to the upfront process. Other times, the attorneys may discuss issues after the buyer has signed which also adds more time to the process. Regardless of which way this works, after your attorney has reviewed the contract, he will set up an appointment with you to come in and sign the documents.

 

Tip for buyers - the contractThe day you sign the contract is the same day your down payment must be provided to your attorney. The attorney's office will let you know how to write the check. The money will go into an escrow account where it will stay until the closing. It does not go to the seller at the time of contract signing.

 

After you've signed the contract, you are still not officially "in contract." The contract is then sent back to the seller's attorney. If there were not already discussions about the same, the attorneys may discuss any issues with the addendum. Conversations may be held with both the attorneys and their clients. At the end when agreement is reached, the sellers will go into their attorneys office and sign the contract.

 

Now that both parties have signed, you have a fully executed contract and the mortgage process can begin.

 

A few other thoughts on this process

 
Contract signing impact on purchasing timeframes

In Orange County NY, the time required to sign the contracts could add from a week or two to the purchasing cycle. Depending on the availability of both attorneys, the speed and methods of sending documents back and forth, the efficiency of the attorney's staff, the signing of a contract could take quite a while. Many sellers still allow showings of their home until the date the contract is signed. All parties in the process should make an effort to speed things up. For example, when your attorney's office contacts you to sign your contract, you should pick the first available time and make a point to get there ASAP!

 
Time is of the essence (not)

Also in the Orange County NY area, dates in contracts are not usually handled in a "time is of the essence" manner. For example, if you have negotiated a specific closing date with the seller, it is important to note this is NOT a set-in-concrete date. In fact, attorneys will tell you that the closing date could be plus or minus 30 days. And if indeed you are 30 days past the agreed-upon closing date and still have not closed, there is an additional process required to "force" the parties to the closing table. So please do not schedule time off of work for a closing until you have actually been notified by the attorneys of a closing date.

 
Review your contract

Also, you should carefully review your contract before you sign it. Hopefully your attorney will send to you in advance so you will have already read it and will have your questions ready. If not, read pertinent paragraphs while you are with the attorney. Make sure the closing date is the same as what you agreed to during the negotiation process. Also confirm that the down payment and mortgage amounts are correct. You should check to ensure that any items that are supposed to be included or excluded in the sale are listed properly.  If you had asked for any contingencies, those should be reviewed for accuracy as well. This is the document that will shape the rest of your purchase process. It needs to be accurate.

 
Next Steps

And that's it! Once your contract is fully signed, you should receive a copy via email, which can be used to get the mortgage process fully underway. Getting to the closing table is now mostly in your hands, and those of your mortgage representatives.

 

For more buyer related tips, click here.

 

 

Originally posted at thehousekat.com.

Posted by

 

Kat Palmiotti, The House Kat

Licensed Associate Broker, CBR®

Grand Lux Realty, Inc.

428 Main Street

Armonk, NY 10504 *

* still supporting Monroe NY, Orange & Rockland counties.

 

914-419-0270 (cell)

email: kat@thehousekat.com

www.thehousekat.com

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Rainmaker
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Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Thank you Patricia Feager, MBA, CRS, GRI,MRP - the process for contracts here is definitely a lot different than it will be...

Jun 17, 2019 02:28 AM #6
Rainmaker
370,160
Abby Stiller
REMAX Realty Group - Cape Coral, FL
Professional Bilingual Realtor (239) 284-8637

Good morning Kat Palmiotti thanks for explaining the buying process in Orange County, NY . Wow it's totally different than how we do things here in FL.

Jun 18, 2019 07:00 AM #7
Rainmaker
1,417,432
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

I know, Abby Stiller - the process is very lengthy here.

Jun 18, 2019 07:24 AM #8
Rainmaker
1,161,662
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Wow, your process is so different from ours, an escrow state. Our inspection period for instance happens during escrow as part of the ratified contract and is more of an opt-out rather than opt-in condition.

Jun 18, 2019 02:28 PM #9
Rainmaker
3,106,450
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Excellent Blog Kat on this subject and explaining it the way it should be.  Can I reblog this sometime?

 

Jun 19, 2019 06:46 AM #10
Rainmaker
1,417,432
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Jane Peters - and that's what it will be like when I move to a different state later this year - I can't wait.

Will Hamm - Thank you and of course you may. I appreciate that!

Jun 19, 2019 07:17 AM #11
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Oh, how interesting! I have sold to many buyers from New York and I'm always fascinated to hear how your/their process differs so much from ours! North & South Carolina are different as well but, it is so interesting to hear how other states operate.

Great explaination for buyers, Kat! 

Jun 20, 2019 09:56 AM #12
Rainmaker
1,417,432
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

The NY process is definitely different than the NC process Debe Maxwell, CRS !!

Jun 20, 2019 11:11 AM #13
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Paul S. Henderson, REALTOR®, CRS
RE/MAX Northwest. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

 It seems that every state has its different idiosyncrasies when it comes does the buyers rights and responsibilities in buying a house. You did a masterful job of showing us what it takes In New York and I thank you for sharing, Kat Palmiotti 

Jun 23, 2019 09:02 AM #14
Rainmaker
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Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Every state definitely have differences in process, Paul S. Henderson, REALTOR®, CRS . Thanks for your comment!

Jun 24, 2019 03:24 AM #15
Rainmaker
1,873,814
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Kat - very well explained and helpful for people coming to New York from another state.  How different it was when we bought a house in Florida.

Jun 24, 2019 05:29 AM #16
Rainmaker
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Wayne and Jean Marie Zuhl
Samsel & Associates - Clark, NJ
The Last Names You'll Ever Need in Real Estate

Wow - thorough guide to a contract for buyers. First time buyers, and even experienced buyers, need this info!

Jun 26, 2019 05:57 AM #17
Rainmaker
3,186,976
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Kat Palmiotti  what state are you moving to? Inquiring minds want to know, Endre

Jun 28, 2019 11:50 PM #18
Rainmaker
1,417,432
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Hi Grant Schneider - I bet it was a lot different!

Thank you Wayne and Jean Marie Zuhl for taking the time to read and comment. I appreciate it!

 

Jun 29, 2019 03:07 AM #19
Rainmaker
1,417,432
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Endre Barath, Jr. - I shall soon be a resident of Kalispell, Montana (How's that for a change?)

Jun 29, 2019 03:08 AM #20
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Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Kat Palmiotti You have to have a lot of patience to sell in NY...so very different from MD. I have had a property under contract, fall thru, re-inspected, resold and settled in less than 30 days. Thanks for sharing your process and good luck with your move to Montana.

Jul 01, 2019 03:25 AM #21
Rainmaker
1,417,432
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Margaret Rome, Baltimore Maryland - Thank you! The Montana process will be a lot more like Maryland, and I can't wait. NY's process takes forever. 

Jul 01, 2019 03:32 AM #22
Rainmaker
5,313,632
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Home buyers will be in very good hands when they seek your advice and use your professional real estate services.

Jul 01, 2019 05:14 AM #23
Rainmaker
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Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Thank you Roy Kelley !

Jul 01, 2019 06:08 AM #24
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Hi Kat:

This is great education for buyers regarding your contract process so the appropriate expectations are set and they understand the process and timing. It's so different from here in CA.

Jeff

Jul 03, 2019 01:34 PM #25
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