1. THE OFFER

   A. Once the buyer has decided upon the amount he will offer to purchase the property, the agent will fill out a standard offer form (also called contract to purchase) and the addendum sheet (indicating any contingencies of the purchase, i.e., mortgage, home inspection, pest inspection, lead paint inspection, etc.) The buyer will sign them and keep one copy.

    B. The buyer will submit a check, made out to the listing Real Estate agency ( usually for $1000.00).  The check is held in escrow by the broker.  This is called the "Binder" or "first deposit".  It is returned if the offer is not accepted. 

     C.  The offer generally allows the seller 24-48 hours to make a decision.

     D.  The offer form must also indicate a date (on or before) when the purchase and sale agreement is to be signed.  The date must be a convenient one for both parties - usually 10-14 days is acceptable.  All contingencies, except the mortgage contingency, will have been completed prior to the purchase and sale signing. 

2. THE PURCHASE AND SALE AGRREMENT

    A.  This agreement is the legal document which pins down the precise terms of sale.  Everything is spelled out in detail.  If an attorney is to be used by either the buyer or seller, please notify the broker so the targeted purchase and sale agrrement signing date can be accomplished on time.

    B.  At the signing, the buyer submits his second check (2nd deposit) to complete his total deposit, usually equal to 5% of the selling price.  This check is also made out to the listing Real Estate agency and is held in their escrow account.  It is returnable only if the seller fails to live up to all terms, or the buyer is unable to secure a mortgage under the terms of the agreement.

    C.  The agreement also specifies a day at which time papers are to be passed and ownership transferred.  The time allowance for this is flexible but may run between 45 and 90 days.

    D.  Once the agreement is signed, the buyer is allowed four weeks to obtain a mortgage commitment from the bank.  If he cannot secure a mortgage under the terms of the agreement, all deposited money will be returned to him.

3.  PASSING OR CLOSING

    A.  The passing takes place at a location convenient to all parties (the count registry of deeds, an attorney's office, or our office). 

    B.  The buyer brings a certified check for the balance of his total down payment on the house.  The deposit checks count toward the down payment.

    C.  The buyer is also responsible for certain closing costs, i.e., advance payments on taxes, payment for oil left in tank, legal fees etc.  These charges can usually be covered by the writing of personal checks at the time of closing.  You should verify with the conveyance attorney prior to the closing date.