This section deals with Real Estate 101 Purchase Price. The blanks provided on the REPC are to describe Earnest Money. This is the amount of money that a St George real estate home buyer is willing to extend to the home seller to cover the sellers costs should the home buyer not fulfill his portion of the purchase. The Earnest money does not come into play until several other events have happened.These are spelled out in the other sections of the REPC. Once the Earnest Money stipulations are completed it is very difficult for the home buyer to get his or her Earnest Money back. This provides some protection for the home seller, that has removed his home from the market on good faith that the buyer will complete the transaction. It is difficult to determine the cost of a home being taken off the market. A larger Earnest Money amount will usually strengthen the St George real estate offer in the eyes of the seller.
The other blanks in the Earnest Money section ask if there will be a new loan, this is where the amount of the loan is entered. Next is the Seller Financing line. This is only applicable if the seller if offering some additional type of financing to the buyer. The next line is for any additional money that the buyer will be bringing to the settlement table. The final line is where the total Purchase Price is filled in. All of the lines above should equal the amount in the bottom line. If you have questions about a St George real estate purchase give me a call.
Settlement and Closing
The second page of the REPC addresses the Settlement and Closing arrangements associated with your St George real estate transaction. It is important to understand that Settlement and Closing are not synonymous. Settlement can take place when funds are ready and all due diligence has been completed. Settlement usually takes place at a St George Title Company. The Title Company will have all of the paperwork necessary to complete the sale of the property. Title companies in the St George real estate market work closely with the real estate agents. The Settlement process usually takes about 30 minutes to complete. The main instrument in the settlement process is the HUD. This document explains where all of the money in the transaction will go. The HUD can usually be obtained a day or two prior to settlement. It is wise for both home seller and buyer to review this document prior to settlement. This will minimize any surprises at settlement.
The Settlement portion of the REPC covers Pro-rations that can be due to Home Owners associations fees and dues, taxes for the current year, or any other items that may need to be addressed. Special Assessments are also addressed in the settlement portion of the REPC. Fees/Costs/Payment Obligations are also determined in the REPC, with the standard verbiage stating that both parties will each pay half of any such costs. Finally Section 3 explains Closing. Basically Closing happens when all of the documents signed at Settlement have recorded at the county recorders office. In the St George real estate market area the default time frame in the REPC is 4 days, but typically closing happens a day or two after settlement with the exception of Friday closings.
Section 4 of the REPC discusses the Possession time frame. Possession of the property is granted after Closing. There are a few choices available, but most home buyers like to take possession of the property Upon Closing. The buyer of the home should not receive possession of the home until after closing. It is sometimes difficult for the new home buyer to wait until this happens but it is better for everyone concerned if they wait. Possession of your St George real estate is the most exciting part of the entire transaction.