Agent & Price
The Second Deposit is due to whatever entity and on whatever date was agreed to in the contract. The deposit is held by the Escrow Agent, who could be the Buyer’s Agent, Seller’s Agent, one of the Attorneys, or a third party. The Escrow monies are delivered to the Closing Agent in time for Settlement.
Buyers may choose to have the property inspected by a licensed Property Inspector and if so, it must happen within the time frame that was agreed to in the contract. Some buyers will have several different inspectors for professional opinions in specific areas (eg. termites, roof, HVAC, bulkheads, and docks). These will typically be arranged by the buyer immediately after Attorney Review has ended and should be completed, including any reports, within one to two weeks or by whatever date was agreed to in the contract.
Sometimes defects are revealed in an inspection that the Buyer wants to be addressed by the Seller or credited at closing to address it themselves. In that case, it is up to the lawyers to negotiate between the parties and if possible get the deal back on track.
Once any inspection contingencies are satisfied and we know the contract will move forward it is usually the Buyer’s Attorney who will order the Title Report, Survey, and Flood Elevation Certificate. On Long Beach Island there may be a need for a Tidal Lands Report as well.
If the property that you are selling is part of an Association your agent will ask for copies of the rules, regulations, and other important Association documents when the property is listed. You should also be prepared with official copies to give the buyer as soon as you have an effective agreement to purchase.
Loan Approval and Appraisal
If possible, we suggest that you accept buyers who have a lender’s pre-approval, approval letter, or written loan commitment, which is a better guarantee than a pre-qualification or no documentation from a lending institute. Regardless, we will regularly check on the progress of the loan approval process and keep you informed.
If the agreement is conditional upon financing, you can also expect the lender to send a professional appraiser to review your property and verify that the sales price is appropriate. This is to confirm their investment in the property is accurate. For higher priced homes two or more appraisals may be required.