Hi BP members, l wanted to ask the community if you have any articles on the legal process of what happens in real estate. I am trying to gain knowledge on the legal requirements before the deal and around closing time. Thanks and hope happiness finds you!
@Trevor Bond The process varies state by state. I was licensed in both Mass and Maine until 6 months ago when I left the business for much greener pastures. Here are the processes in both states:
Massachusetts: Buyer writes an offer, which is actually a binding document. an EMD is submitted with the offer - typically $500 - $1,000. Due diligence begins and is typically 14 calendar days. Issues are ironed out. A P&S is created and a second, much larger deposit is tendered, typically 3%+/- of the purchase price. The P&S is normally created by the seller's attorney, who negotiates terms with the buyer's attorney by adding all sorts of addenda. The funds from the lender are deposited in the buyer's attorney's IOLTA account. After underwriting is complete, the parties sit at the closing table and sign the closing documents. The buyer's attorney writes a check for the proceeds to the seller, or in the alternative, the buyer's attorney wires the money into the seller's attorney's account and a certified check for the proceeds is given to the seller at closing. Days are measured in calendar days. Septic, smoke/CO inspections are mandatory. Property disclosure is optional.
Maine: All the same, except: There is no separate offer. The offer is the actual P&S, with all of the contingencies listed. Days are business days, not calendar days. Closing is normally done by a title company, not an attorney. Days are measured from the effective date (date documents are signed by all parties, whether the parties are immediately notified or not). EMD is larger, but typically $6,000 maximum as that is the limit of small claims court here. Septic/smoke/CO inspections are optional. Property disclosure is mandatory.
So as you can see, terms, practices and procedures can vary by quite a bit, so you should drill down in the locale where you are going to work and understand local practices there.
This is so helpful and l am very appreciative of your knowledge and l cant wait to pass on this information. Thank you again!