After Executed Contracts

As I mentioned earlier, after executed contracts you can relax a little, but just a little, as there is still a lot of work to be completed prior to closing. We touched upon what the Buyer will be doing, and now let’s look at what the Seller will be doing.

DUTIES OF THE SELLER:

If there were any terms of sale in the contract for the Seller to perform, this would be the time for the seller to take care of those items. This may include, but is definitely not limited to:

Attaining a ‘Certificate of Occupancy’ or ‘Fire Underwriter Certificates’ for any modifications and/or additions to the home in which the Seller had not previously procured a building permit.

In the City of Peekskill, an updated Certificate of Occupancy is required for all transfers of title.

Repairing/replacing any items that the Buyer and Seller agreed would be completed prior to closing.

DUTIES OF BUYER AND SELLER:

Movers: It is time to call movers to get bids and to schedule a moving date. Please remember, this date may be extended so you and the moving company will need to be flexible.

Insurance: Call your insurance company and inform them of your move. Schedule a cancellation of your insurance on your current property and order insurance for your new home. For the new property, your insurance company will ask you many questions, including: How many feet away is the closest fire hydrant, or how far away is the Fire Department? Try to have that information available for your insurance provider.

Actual Closing Date: Ok, so let’s move ahead about 30 to 45 days, and now the Buyer has received the written mortgage commitment. The bank and Buyer’s attorney have approved the Title Report, and attorneys for the Buyer, the Seller and the bank have set an actual closing date, time and location.

After all that is accomplished, here is what comes next:

DUTIES OF SELLER

Call utility, telephone and cable TV companies to inform them of the ‘shut-off’ date. The Seller will need to provide these companies with a forwarding address so they can bill the Seller for the services provided up to that date.

If applicable, the Seller calls the oil, propane and water companies for a final reading. The oil and propane companies will then come out and read how much oil and propane is remaining in the tanks, and will provide a Certificate for the Closing, detailing the amount of oil and propane left in the tanks and the dollar value of those products. The water company will come out to read the meter in order to provide a final bill to the Seller for the closing.

DUTIES OF BUYER

Call the utility, telephone, cable TV, satellite, water, oil, propane, etc. companies to order service to start as of the closing date.

DUTIES OF BUYER AND SELLER

Seller Move-Out: After the Seller vacates and the movers are gone, the Seller then cleans the home to “broom-clean” status. The home must be vacated by the Seller and be completely empty and clean for the walk-through and closing. All movers, cleaners, trash hauler, pet pick-ups, etc. must be completed at least 3 hours prior to any closing in order to give the Buyer time to perform the walk-through and get to the closing! Any deviation from that time schedule may result in money being left in escrow at the closing and the closing itself being extended from the typical two hours to considerably longer!!! This may be an added expense for both the Buyer and the Seller, and will definitely add time, frustration and worry for all.

Walk-through: this is the final step before entering the doors of the closing. Here, the Buyer will do a final inspection – not to find any additional items that might have been missed on the original inspection – but to look and make sure the home is at least in the same (if not in better) condition as it was during the original inspection. Also, the walk-through ensures that any areas – such as floors, walls, counters, etc., previously covered by area rugs, window treatments/pictures, appliances/books, etc. – not visible during the original inspection, are in good condition. Lastly, the purpose is to ensure that everything that was supposed to be included with the sale is on the premises, and that everything that was supposed to be removed from the house was in fact, removed from the house.

Paint cans and scrap-wood: this is probably one of the most discussed items at a walk-through. Please remember that the Buyer and Seller should be specific as to what items are to remain or to be removed.

Light fixtures removed: Any light fixtures removed should be replaced by the Seller with a ‘porcelain’ light-bulb fixture. They usually cost about $2.50 each, or less. No bare wires should be exposed.

Holes in walls from pictures: It is reasonable for the Seller to leave small holes left by nails from pictures and posters. However, the Seller is required to remove any hooks and nails from the wall. If there is significant hole/damage left by a particular picture/mirror, etc., then the Seller should patch that damage, but no painting is necessary.

One Response to “After Executed Contracts”

  1. Necklace Holder Says:

    ,”~ I am very thankful to this topic because it really gives up to date information “~*

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