Contract to Close Checklist: Real Estate

Review the Purchase and Sale Agreement to fully understand the terms and conditions of the transaction. This task is crucial as it sets the foundation for the entire process. Pay close attention to the purchase price, contingencies, and closing date. Understand any special provisions or conditions that may impact the closing. If there are any questions or concerns, consult with the buyer's agent or legal counsel. Ultimately, the goal of this task is to ensure a clear understanding of the agreement and to address any issues proactively.

Confirm that the buyer has obtained financial approval for the purchase. This involves verifying that the buyer has the necessary funds or loan pre-approval to proceed with the transaction. Coordinate with the buyer's lender to obtain the necessary documentation, such as bank statements, proof of income, or a mortgage pre-approval letter. This task is important to ensure that the buyer is financially capable of closing the deal. If the buyer does not have the necessary finances, it may lead to complications or delays in the closing process.

Coordinate with the buyer's lender to schedule an appraisal of the property. The appraisal provides an independent assessment of the property's value, which is crucial for the lender to determine the loan amount. Work with the lender and the appraiser to set a convenient date and time for the appraisal. Ensure that access to the property is arranged and any necessary documentation or information is provided to the appraiser. This task is essential to move forward with the financing process and secure the buyer's loan.

Carefully review the appraisal report to assess the property's market value. Pay attention to the comparable properties used for the appraisal and the overall condition of the property. Evaluate whether the appraised value aligns with the agreed-upon purchase price. If the appraisal comes in lower than expected, it may trigger negotiations or require adjustments to the contract and financing. This task ensures a thorough understanding of the property's value and the potential impact on the transaction.

Arrange for a professional home inspection to identify any underlying issues or repairs needed. Research reputable home inspectors and schedule a convenient date and time for the inspection. Coordinate access to the property and notify the seller of the inspection. Prepare the necessary paperwork, including the inspection agreement and any inspection-related disclosures. This task is fundamental to providing the buyer with a comprehensive understanding of the property's condition and addressing potential concerns.

Thoroughly review the home inspection report to identify any necessary repairs or potential issues. Pay close attention to safety hazards, structural concerns, or major defects. Assess whether the repairs are significant and may affect the buyer's decision to proceed with the purchase. Identify any items that require further evaluation by a specialist or additional inspections. This task enables you to determine the appropriate actions to address the inspection findings and protect the buyer's interests.

Engage in negotiations with the seller to address any necessary repairs identified in the home inspection report. Evaluate the repair requests and prioritize based on their significance. Determine a reasonable solution that benefits both the buyer and the seller. Negotiate potential monetary credits, repairs, or alternative arrangements, and amend the purchase contract accordingly. This task aims to reach an agreement that satisfies both parties and ensures a smooth closing process.

Monitor the progress of repairs agreed upon in the contract amendment. Coordinate with the seller or their representative to ensure that all repairs are completed satisfactorily and within the agreed timeframe. Arrange for a re-inspection, if necessary, to verify that the repairs have been properly executed. If any issues arise during the repair process, work towards a resolution that satisfies both parties. This task ensures that the buyer is provided with a fully functional and safe property before the closing date.

Initiate the title search process to ensure a clear title and uncover any potential liens or encumbrances on the property. Collaborate with a title company or attorney to perform a thorough examination of the property's history and records. Provide the necessary property information and documentation to the title search provider. This task is essential to identify any title issues that may affect the transferability of the property and address them prior to closing.

Thoroughly review the title report received from the title search provider. Evaluate any exceptions or encumbrances found on the title. Pay close attention to liens, easements, or restrictions that may impact the buyer's ownership rights. Seek legal advice if any significant issues arise. This task ensures that the buyer is fully aware of any potential obstacles related to the property's title and can make an informed decision.

Obtain the seller's disclosure statements, which provide important information about the property's condition and potential defects. Review the disclosure statements carefully to understand any known issues or concerns disclosed by the seller. Assess the significance of the disclosed information and its impact on the buyer's decision to proceed with the purchase. If necessary, consult with the seller's agent or legal counsel to clarify any ambiguous or incomplete disclosures. This task ensures that the buyer is fully informed about the property's condition and can proceed with the transaction with transparency.

Verify that the buyers have obtained the necessary insurance policies to protect their investment. Work with the buyers and insurance providers to ensure that appropriate coverage is in place for the property. Confirm that the insurance policies meet the lender's requirements and provide adequate protection. Any issues or discrepancies should be resolved promptly to avoid delays in closing. This task safeguards the buyer's interests and aligns with the lender's requirements.

Coordinate a final walk-through inspection with the buyer shortly before the closing date. Schedule a specific date and time that allows the buyer to thoroughly inspect the property and confirm that it is in the agreed-upon condition. Ensure that all previous repairs have been completed and that no unexpected issues have arisen since the last visit. This task provides the buyer with peace of mind and the opportunity to address any last-minute concerns before the transaction is finalized.

Attend the final walk-through inspection with the buyer and address any last-minute issues that may arise. Act as a liaison between the buyer and the seller to resolve any concerns and ensure that the property meets the buyer's expectations. Coordinate any necessary repairs or adjustments based on the walk-through findings. This task ensures that the buyer is satisfied with the property's condition and ready to proceed with the closing.

Coordinate with all involved parties to finalize the date, time, and location for the closing. Confirm the availability of all necessary parties, including the buyer, seller, agents, and any other professionals involved in the closing process. Ensure that the closing location is suitable and accessible. This task ensures that all parties are aligned and prepared for the closing.

Review all necessary closing documents and ensure that they are complete and accurate. Coordinate with the buyer, seller, attorneys, and other relevant parties to gather all required paperwork, such as the purchase agreement, loan documents, title transfer documents, and any additional disclosures. Verify that all signatures and dates are in place. This task is crucial to ensure a smooth closing process and mitigate any potential delays or errors.

Facilitate the final steps to close the transaction. Coordinate with the buyer, seller, agents, and any other parties involved to complete the necessary paperwork, transfer funds, and ensure the proper recording of the deed. Verify that all legal and financial obligations have been fulfilled by both parties. Celebrate the successful closure of the transaction. This task signifies the completion of the real estate transaction and the transfer of ownership to the buyer.