The Gold Coast Standard and Darien Real Estate

Real Estate Purchase Procedures in CT

In the age where information regarding real estate purchase is plentiful some  people doubt the need for a Realtor.  It has been suggested that the agent has been marginalized to the role of a “door opener”.

In the state of CT the proper procedure for buying property is still fraught with pitfalls and only an experienced agent can help you naviagte them.

Read on to see the level of detail required to transfer title in CT and let me know if you don’t agree that the role of the REALTOR is as vital as ever.Many people do not realize that purchase procedures vary from state to state and even from town to town. In the towns of  Darien and Rowayton however the procedures are as follows.

Once you have found your dream home…

1.INSTRUCT YOUR AGENT TO MAKE A WRITTEN OFFER TO PURCHASE

This is also known as a binder. Typically this offer contains, the amount you are offering ,the amount you are planning to put down as a deposit . as well as the amount you are planning to finance.A minumum  of 10%  of the purchase price is required although a buyer may deposit more if he wishes.At this point ,however a check for only 1% of the proposed purchase price is required.

The   binder of sale also contains other terms of the offer such as contingencies (i.e inspection or mortgage  contingencies), a proposed closing date and any specific items or terms to be included or excluded from the sale.At this time the buyer should also sign the “property disclosure” forms which are required by the state and disclose any known problems on the property such as asbestos,water or lead paint.

All binders should be signed and dated up to any including the hour in the case of competing or subsequent offers.

It should be noted that although this is called a “Binder of Sale” legally it is only a handshake agreement.While you are  in this stage..A SELLER HAS THE RIGHT TO ACCEPT ANOTHER OFFER.

The binder is then delivered by the selling agent to the homeowner at which time negotiations formally begin.If the buyer and seller do not reach an agreement, the 1% DEPOSIT IS FULLY REFUNDABLE.

It is the law that the 1% check be placed in an escrow account within 3 days.

2.SET UP A HOME INSPECTION AND HIRE AN ATTORNEY

Assuming you and the seller agree on price and terms ,the buyer should work with the Realtor to set up a home inspection and hire an attorney to  draw up a binding contract ,establish clear title to the property and execute the closing .If you don’t have a good real estate attorney your agent can recommend one.

3.BUTTON UP YOUR FINANCING

The buyer should at this point be moving aggressively to secure financing in order to expidite the transaction and remove the possibility of being outbid on the property.

.3.GOING TO CONTRACT

The attorney will draw up a contract containing, the purchase price,contingencies with amounts and dates,date of closing,  and inspection reports.

The buyer should sign the contract and have it sent with a check for 9% of the purchase price (remember the buyer has already written a check for 1% for a total of 10%) to the sellers attorney.The seller should then sign the contract.

TITLE SEARCH,APPRAISAL AND CLOSING

In the meantime ,the buyers attorney will be executing a title search on the property,and work with the bank on transfer of funds for the closing.In addition ,the lending institution will send an appraiser to the property to establilsh the value of the home.

Buyer and seller then proceed to closing.

Each one of the above steps can contain roadblocks and problems that your attorney and agent will work through together until the transaction is complete.Much of the time things proceed smoothly but when your dream home is at stake, you will want all the professional help possible.

Bear in mind again that every “deal” is different and procedures do very by state and even by town but by now you can see agents are much more than “door openers!”

This entry was posted on Wednesday, March 11th, 2009 at 9:21 pm and is filed under Buyers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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