Today’s real estate purchase agreements have grown from a simple one-page document to a multi-page agreement filled with contingencies and timelines to which both parties agree to adhere. To successfully navigate the closing process, you need the assistance of a qualified Realtor who has the experience keep all parties on track.
There are the contingencies which must be cleared in order to proceed to the closing. Some of the most common include: a satisfactory home inspection, appraisal, clear wood-destroying infestation report and loan approval.
The Tennessee real estate contract stipulates that a buyer must make a loan application within five days of the binding agreement date (the date both parties agree to all terms of the contract). From there the lender is to order the appraisal and then must provide a conditional approval letter within 20 days. All of these are important steps and any delay in processing may delay the actual closing.
It is the responsibility of a buyer to select inspectors to complete these tasks for them. An experienced Realtor can provide the names of several and coordinate the inspection times for you. If there are defects, repairs will have to be negotiated as well and here again, a Realtor will guide you through this process.
Another contingency that must be covered in order to proceed to closing is obtaining a clear title commitment. What happens if a problem is found in the title search? Will you be receiving a warranty deed or a special warranty deed? Should a buyer purchase an owner’s title policy or simply a lender’s policy? These are all questions that must be answered and again, your Realtor can help you work through these questions.