Accepting an offer is an exciting milestone in any real estate transaction. However, we often wonder what comes next. Understanding the steps that follow an accepted offer is crucial for a smooth transition. In this guide, I’ll walk you through the essential stages, ensuring you’re well-prepared for what lies ahead.
1. Confirming Acceptance
Getting everything accepted in writing is the first step. This formalizes the agreement and ensures that both parties are on the same page. A well-drafted contract should outline all the terms, including price, deadlines, and any conditions that need to be met. Written confirmation of acceptance is not only mandatory but also essential in order to avoid any potential misunderstandings.
2. The Due Diligence Period
Following the acceptance, a due diligence period often begins. This timeframe allows the buyer or recipient to conduct research and inspections relevant to the transaction. In real estate, this may involve:
- Home Inspections
- Appraisals
- Title Review
- Property Disclosure Statement
- Legal Advice
- City File Review
- Tax Notice Review
- Strata Document and Financial Statement Review
- Financing Approval
- Fire and Property Insurance Quotes
- Utility Bill Review
Use the due diligence period wisely to identify any potential issues.
3. Negotiating Final Terms
However, due diligence may uncover concerns; consequently, further negotiations may be necessary. This could involve, for instance, requesting repairs, adjusting the price, or even renegotiating other contract terms. Furthermore, clear communication is key during this stage in order to reach a satisfactory resolution for both parties.
4. Submission of the Deposit
After subjects have been removed, the Buyer will submit a deposit in Trust with the amount determined in the accepted Contract of Purchase and Sale. This is usually due on the day of subject removal or within 24-48 hours of the final subject removal (depending on what your contract states). In some contracts, the deposit can be due when you write the offer.
5. The Closing Process
The closing process is the final step in the transaction where ownership is officially transferred. This typically involves:
- Signing Closing Documents: Review and sign all necessary paperwork.
- Payment Transfers: Exchange funds, often handled through a trust account.
- Title Transfer: In real estate, the title company facilitates the transfer of ownership.
6 . Post-Closing Steps
After closing, there are still a few essential tasks to complete:
- Document Filing: Documenting all files with the appropriate local authorities.
- Transfer Utilities: Arrange for the transfer of utilities and services into your name.
- Organize Services & Maintenance Contracts: Lining up any maintenance contracts & services that will be performed during the beginning processes and duration of owning your home.
- Notify Strata Manager: When purchasing a condo, townhome or bare land strata property it is important to notify the strata manager immediately upon taking possession of your new property.
Speaking to a professional is essential. Please always verify the accuracy of this information through your own due diligence. Nicole McWilliams will assume no responsibility or liability for the accuracy of the information within.
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If you’re looking to purchase a home and are wanting a realtor to represent you, call or text 250.808.3125 or email nicolemcwilliamsproperties@gmail.com. You can also find out more about your real estate journey on my website nmcrealestate.ca.
