Tuesday, July 23, 2019 / by Barry Owen
This is the commencement of the 4th (Final) Phase of the Real Estate Purchase Process
You might notice that this is Step #7 of the Home Buyer Process, so you might wonder . . . What are Steps 8-20?
Throughout the Completion Phase (Steps 8-20) process other forms will be required.
- Ask any “Seasoned Veteran REALTOR” and you'll learn that, just because a buyer and seller come to agreement on the terms of a contract, doesn't necessarily mean that there will be a CLOSING.
There are loans to get approved, inspections on the property, and myriad other details which all must come together for the transaction to COMPLETE.
THIS is the phase of the process in which your REALTOR REALLY earns the commission.
It is this through this "Contract to Close" phase of the transaction during which the value of your REALTOR escalates.
A real estate transaction is relatively "fragile" . . . There are SO many things that can go wrong, and Murphy lurks.
Your best line of defense is to have the representation of a REALTOR who is VERY detail-oriented with a deep understanding of the timing and nuances of this phase.
The timelines are all defined in the final (Binding) Purchase and Sale Agreement.
The "Binding Agreement Date" (BAD) is the day that all parties have signed and received the Purchase and Sale Agreement and any/all counters offers - the final one of which establishes this Binding date.
The importance of this date is that many of the timeline performance deadlines are established "from the BAD".
It is vitally important for all parties to adhere to the terms of the contract.
Most REALTORS use the TN REALTORS form RF 708 Timeline Compliance Checklist for Purchase and Sale Agreement to carefully map the course of the transaction.
The next course of action is be sure that all of the appropriate (required) documents are present and fully executed (Signed by all parties to the contract).
Below is a list of forms that may be required by the Principal Broker, by state statute, or required for the Mortgage Lender:
- RF 401 Purchase and Sale Agreement
- RF 651 Counter Offer(s)
- RF 141 Exclusive Buyer Representation Agreement (Designated Agency)
- Tennessee Residential Property Condition Disclosure RF 201 (or Exemption RF 203 or Disclaimer RF 204)
- RF 209 Lead Based Paint Disclosure for Purchase (Only for houses constructed prior to 1978)
- RF 302 Confirmation of Agency Status
- RF 304 Disclaimer Notice
- RF 308 Wire Fraud Warning
- RF 625 FHA/VA Addendum (If Applicable)