The moment you’ve been waiting for has finally arrived. Your client has approved your proposal, signed the legal paperwork, and payment has been delivered. Now what?
The answer may vary from case to case, but there are a few key points that you need to consider. Let’s examine each one.
Contract Status
One of the first things you’ll want to do is to make sure that your contract is in good standing. This means that you need to contact the client, and confirm that they have all signed and delivered the items listed under the agreement. If everything is in order, then there’s no need to proceed to the next step.
The Deposit
The next step is to issue a deposit check for the agreed upon amount. This is a standard practice in real estate transactions. It protects you, the seller, in case something happens and the buyer doesn’t pay. The protection often comes in the form of a cashier’s check or a money order. Make sure that you notify the bank in advance that they should expect this. This will also ensure that the check is ready when the buyer delivers their payment.
Title Search
You’ll want to conduct a title search in order to make sure that you’re not missing out on any liens, mortgages, or other encumbrances that the buyer might not know about. This can be a time-consuming process, so be sure to have all of the available information before you start the search. You can also ask the client for any relevant information that they might have. If they’re purchasing the home for investment purposes, then they might know of some pending lawsuits or other claims that could affect its value.
Check-Out
Once you’ve conducted a title search and are satisfied that you have clear title to the property, it’s time to issue a property inspection report. This is typically a multi-page document, which evaluates the physical condition of the property. It also includes any recommendations for the buyer to consider. Be sure to sign and date each page of the report before you give it to the client. This will protect you, the seller, in case there are any disputes about the condition of the home later on.
Closing Costs
You’ll want to allocate some amount of money for closing costs. These are items that are required in order to complete the sale, but which the seller does not need to pay. Examples include the attorney’s fees, recording fees, and property transfer tax. Be sure to itemize these costs in your written proposal. Then, when the closing gets closer, clarify with the client what those costs will be in advance. It’s also a good idea to have a list of these costs ready. Otherwise, you might not be aware of what they are until the end of the process.
Overall, What’s Next?
Once you’ve taken care of all of the above, the next step is to notify the buyer that their offer has been accepted. You and the client will need to work out the details of the contract, including the closing date. Then come together with the real estate agent and review the contract to make sure everything is in order. Finally, provide the buyer with all of the necessary paperwork, and get a signature from the client on the deed.
Hopefully, this article gave you some good ideas on how to proceed once your client has approved your proposal. If you have any additional questions, please don’t hesitate to reach out to us. We would be happy to help.