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the contract is signed, now what?

Published Feb 28, 2006 by Judy Marciano | E-mail this post

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I've been working with a few different buyers recently who now have accepted offers. I thought it would be beneficial to some of my first time buyers, to give a brief overview of what happens next in the process:

After you have a signed contract, what's next?

“Attorney review”, which is the time period that allows the parties to review the contract with an attorney and make any additional provisions to the contract (3 business days but typically extended to include any necessary changes in initial contract). The attorney will prepare a rider with these changes and after the newly added terms are accepted, the attorney has to sign off on the final rider and inform all parties that the attorney review period is concluded.

ok, after attorney review and before the actual closing, what are some of the buyer's responsibilities?

1. Hire an inspector – you should do this immediately following attorney review. Usually you have 10 days to get this accomplished and the results are sent to the seller’s attorney. If any repairs are necessary as a result of the inspection, you might get a credit at closing to fix them or the seller will repair the defect.

2. Getting a mortgage and all related mortgage costs – this varies by each mortgage company; I suggest you shop around and learn about your options. This is the most time consuming part of the transaction and your biggest closing expenses will be in this area. Consult with the mortgage broker you choose to determine in advance what you will be expected to pay at closing.

3. Title insurance, title searches and survey – you are required to purchase title insurance for your property (an insurance policy that covers your ownership interest and the mortgage interest of your lender).Your attorney will order the title insurance in conjunction with the title searches. This search will show you if there are any unpaid tax liens and provide you with a copy of the recorded deed. A survey will disclose any encroachments that do not appear in a title search.

4. Insurance – some mortgage companies require you to purchase a one year homeowners’s insurance policy.

5. Attorney fees – paid at closing

Very important…..after attorney review your biggest responsibility is to keep tract of the inspection contingency date and the mortgage contingency date since you will waive your right to an inspection or a mortgage if you do not perform them within the time allotted within the attorney review letter.

Obviously I did not cover every detail thats involved but you should have a general understanding of what is required prior to closing on your purchase. Try to be patient, its not always a smooth process, but that is why you use professionals such as your attorney and your realtor.

About me

  • I'm Judy Marciano
  • From Hoboken, NJ, United States
  • Thanks for checking out my blog. I am a full time licensed NJ real estate agent in Hoboken at Empire Realty Group. As I go thru Hudson County each day, often I stop to take a picture. Feel free to contact me for any real estate assistance at jmarciano@empiregroup.com

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