Last month I wrote about what to expect when purchasing home. This month I want to talk about what to expect when selling a home. The seller has a lot of waiting time as the seller waits for the buyer to perform the inspections and the seller waits for the buyer to obtain their financing. Although this can be a little unnerving, there are still obligations that the seller must do. First, you should go to your safety deposit box and pull a copy of the deed and title insurance policy from when the property was purchased. This will aid the attorney in preparation for closing later on in the process and confirm that you are the rightful owners of the property. The sellers attorney will review the contract during the attorney review period to make sure the time frames for inspections, financing and closing are within reason. The attorney will also confirm the list of items that are included or excluded, such as window treatments, light fixtures, appliances and even swing sets. As a seller you don’t want to get to closing and find out that the buyer thought the antique chandelier in the dining room was included when in fact you were taking it or giving it to your children. The attorney may discuss any renovations that may have been completed and the affect of having obtained or not obtained any permits.
Once the inspections are completed, the attorney will send you a copy of the inspection report and review the list of items that the buyer wants addressed. At this point the parties negotiate the issues and come to an amicable resolution on what items if any will be addressed and what items will not be addressed. As a seller you are not obligated to correct every defect but keep in mind a buyer is also no obligated to purchase the property if the parties cannot agree upon the repairs. In some cases, some of the defects if not corrected may have to be disclosed to other potential buyers.
Once the sellers have obtained confirmation that the buyers have their financing, the attorney prepares for the closing. The seller’s attorney will receive a copy of the title report, which shows the condition of ownership of the property and whether there are any liens on the property. All mortgage, home equity loans and lines of credit must be paid off at closing. The attorney will request information for all open accounts so a payoff letter can be obtained. Sometimes, old mortgages show up on the report. Although they may have been paid off years ago, sometimes the lender did not file a discharge with the County. The attorney will work with you in obtaining a discharge. Sometimes, a judgment may show up from a creditor. Again, the attorney will work with you in obtaining a satisfaction of the judgment.
The attorney will prepare the transfer documents and attend closing with you or on your behalf. The attorney will make sure you get the proceeds before the buyer gets the keys.
