Closing and contingencies

The Closing Agent
A title agent or an attorney will be selected for the closing agent. The closing agent will ensure that all encumbrances such as mortgages, liens, and any restrictions are made aware before closing.

Contingencies

A contingency is a condition that needs to be met before the contract becomes legally binding and effective. Such as obtaining financing, and insurance. Reviewing the preliminary title, and disclosure documents. Inspection of the property as well can be part of a contingency.

Depending on the outcome of the inspection, two things can happen:

• Scenario #1: Each milestone on the timeline is met, and you gain the momentum closer to closing.

• Scenario #2: After reviewing the documents, and completing the inspections, the buyers decide to renegotiate the agreement. (Usually price)

How will you manage this situation? This is when a listing agent comes in very handy to find creative solutions to negotiate a solution for both sides of the equation.

Loan Approval and Appraisal

It is my suggestion that you accept buyers that submit their offers with a pre-approval letter, because that is a better guarantee of a loan approval.