Jim Gilbert 4501 Spicewood Springs Rd. Suite 1029 Austin, TX 78759 Phone: (512) 342-8744 Mobile: (512) 913-1557 Email Jim

Key Dates and Events in a Typical Contract


If you are buying a home or selling real estate in the Austin, Texas area, it helps to have a basic understanding of how events flow from the date a sales contract is executed (the Effective Date) to the closing of the transaction. 

The "typical" contract summarized in the table below has the following provisions:

  • Closing on or before 35 days from the effective date,
  • 10-day Option Period,
  • 14 days for the Buyer’s Lender to establish that the Buyer is credit qualified for the loan specified in the contract (in the 3rd Party Financing Condition Addendum), 
  • 3 days for the Seller to provide the existing survey and affidavit.
  • 5 days from receipt of survey, title insurance commitment and exceptions for the Buyer to file objections in writing.

Day Event

Pre-Contract

Agent provides Information about Broker Services to Buyer. Buyer's Representation Agreement is executed by Buyer and Agent.

Agent provides Information about Broker Services and market data to Seller. Listing agreement is executed by Seller and Agent. Property to be sold is placed on the market.

Buyer property search and selection of property to purchase; Buyer’s Agent provides comparable property data to Buyer.

Offer prepared and submitted to Seller via Seller’s Agent with preapproval letter from Lender and copy of Earnest Money and Option Fee checks.

Seller makes counteroffer and submits it to Buyer with Seller’s Disclosure.

Buyer makes counteroffer to Seller and submits it with signed Seller’s Disclosure.

0

Seller agrees to the counter and initials the final changes to contract, establishing the Contract Effective Date. (All dates in the contract flow from this date.)

The Option (Termination) Period and time for the 3rd Party Financing Condition Addendum start.

Contract and Earnest Money check are delivered to Title Company. Option Fee delivered to Seller or Seller’s Agent (if not delivered by the end of day 2, there is no Option Period)

1

Buyer schedules the Home Inspection. Also schedules termite and any other inspections.

3

Seller provides existing Survey and Affidavit to Title Company and Buyer. (If not provided, a new survey is ordered at the Seller’s expense.)

Property Inspection(s).

4

Inspection Report(s) received from Inspector(s) are reviewed by the Buyer and Agent.

6

Amendment addressing repairs is crafted by the Buyer and Agent, and is sent to the Seller. Inspection reports are often sent to the Seller also to justify the repairs requested in the repair amendment. Seller's Agent reviews amendment and reports provided with Seller.

8

Negotiation of repairs are finalized, and the revised repair amendment is executed and becomes part of the contract. Amendment is sent to Title Company and Lender.

10

Option (Termination) Period ends.

11

Lender orders the property Appraisal. (The Lender must approve both the Buyer and the Property for the purchase loan.)

13

Title Company issues the Commitment to insure the title to the property.

Property Appraisal.

14

The 3rd Party Financing Condition Addendum ends.

18

Last day for Buyer to object to survey or provisions of title insurance commitment.

18-31

Appraisal received by Lender. Lender underwriter approves the property based on the Survey and Appraisal and the Buyer’s ability to purchase the property.

20

Last day for Title Company to issue Commitment for title insurance.

32

Loan documents are prepared by the Lender and sent to the Title Company.

33

Title Company prepares closing documents for Seller and Buyer, and issues the HUD-1 Settlement Statement to Lender and contract parties for review and any corrections.

34

The home buyer makes a final visual inspection of the home prior to closing. The purpose of this Final Walk-through is to make sure that all repairs have been completed, to see that all things not excluded from the sale are still present in the home, and to insure that the home is left in proper condition.

35

Closing. All papers transferring title to the Buyer and initiating the Buyer’s loan are signed. Buyer gets possession of the property when the Lender funds the transaction (usually the same day).


"We love because He first loved us." (1 John 4:19, NKJV)

Jim Gilbert, e-Pro®, REALTOR®
Austin, Texas Real Estate Agent
Licensed by the Texas Real Estate Commission (#0536692) to sell Homes & Real Estate in Texas

   


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