What is Covered in a Real Estate Contract?

The Contract of Sale, or Purchase and Sale Agreement, is a legally binding document, whereby the homeowner and the buyer agree to terms under which the buyer will acquire the seller’s property.

Who is paying the various expenses of the sale, including closing costs?
In Oregon and Washington State, both buyers and sellers incur expenses during the transaction process. Your knowledgeable CBBain or CBSeal realtor will walk you through the details, but here are the basics.

Buyers are typically responsible for costs associated with the down payment placed on their new home, any home inspections, a portion of the escrow fees, the portion of the title insurance policy that benefits the lender, and any loan costs.

Sellers generally pay for a portion of the escrow fee as well as a standard title insurance policy.

Shared responsibility for the annual expenses of property taxes and homeowner association fees is divided between buyers and sellers and prorated based on the closing date.

The actual closing date of a real estate transaction is the date in which proceeds from the sale are available to the seller and the transfer of the title has been recorded by the county. The lender is responsible for providing the buyer with a good faith estimate, which will provide a close approximation of the buyer’s financial requirement to close the transaction.

The date of occupancy is agreed to between the buyer and seller during the negotiation process. If the seller remains in possession after closing, there should be a rent back agreement in place prior to closing.

Should I Offer a Home Warranty?

It is a prudent idea to invest in a home warranty. From water heaters to septic systems, to central air and heating, the Home Protection Plan covers repairs to a home while it is on the market and for a specified time after the close of the sale. Having one will enhance the success of selling your home, by reducing the risk to a new buyer in the event that there are repair problems after the sale. The Coldwell Banker Home Protection Plan, which is paid out of escrow at the closing of your real estate transaction, will cover the cost of many repairs or replacement systems to your home.

To lessen the stress of selling a home, and for peace of mind that comes with a home warranty, it makes sense to call your realtor today for details about Coldwell Banker’s Home Protection Plan coverage.