PLEASE NOTE we are now brokered by eXp Realty. Call or text Alisha Collins, eXp Realty at 307-247-1806 or email at alisha@casperpowerhouse.com We are excited to talk with you!
What do contract deadlines dates mean when you sell your home? Deadlines are one of the most important aspects of a real estate transaction, because the dates in the contract can really affect your outcome. To find out more, watch below.
I always say, if a seller wants to sell, and the buyer wants to buy, let’s put it together quickly, why wait? If the seller misses the deadline without the extension signed by all parties in place, the buyer is no longer obligated by their offer and can go find another house. That said, I am not a big fan of offer extensions. Why do we write the dates in the contract if we’re just going to keep extending them.
Next, the earnest money must be received within a certain number of hours. We often see buyers write in their offer that they want 24 to 72 business hours to turn in earnest money. Sometimes it’s even 96 hours, especially if the buyers live out of town or state. If earnest money isn’t delivered where it’s supposed to go, and the receipt in hand by the deadline, technically, per the terms of the contract, it offer’s void. In this scenario, the seller could accept another offer. A pre-qual may accompany an offer, or the offer may state it is to be delivered upon acceptance, or by a set time. If this deadline is not met, again you’re technically out of contract, and again the seller could accept a different offer.
Buyer inspections must be completed by the objection deadline. This is the buyer’s opportunity to ask the seller to complete items that they want to have repaired. If the seller doesn’t receive objections by the deadline, the buyer’s obligated to accept the property in as is condition. If a buyer determines that the roof is bad, and objections aren’t received by the deadline, they’ve accepted the property in as is condition. They can no longer expect the seller to repair or replace the roof. And they won’t be able to cancel the contract due to property condition. They always can still try to ask for repairs, but most the time it does not happen.
Between the objection deadline and the resolution deadline we renegotiate to make sure that both parties have come together in agreement. If the buyer and the seller can’t reach an agreement, or the seller doesn’t respond by the resolution deadline, the buyer must decide whether to back out of the deal or take the house in as is condition. If they don’t respond by the resolution deadline, then they’re taking it in as is condition.
Obviously you have a real estate agent that’s helping you through the process, but I tell all of my clients, you want those dates in your phone, in your planner, sticky notes on your fridge, on your computer screen, whatever it takes to make sure that you do not miss those dates.
One deadline that is not talked about much but is huge is the title deadline, the day the buyer gets to review and potentially object to the title commitment. It is critical that you’re aware if there is a problem with the title on a property.
The last dates that I’ll address here are the closing deadline and possession of the property. Obviously we need to take the closing date, that is dependent upon the lender and the loan underwriter, also appraisers are running behind. If something happens and you realize you can’t close on time, or meet any of those other deadlines, it is critical we renegotiate a contract extension before the deadline expires. I realize there is a lot of information here to digest, but of course if you’re working with an experienced agent they’ll be able to help you monitor the necessary dates and deadlines. We want to set you up for selling success.