Pending Does Not Mean Sold
Pending Does Not Mean
Sold
In today’s changing market, sale pending does not mean sold. Most real estate purchase contracts have
contingency (escape) clauses for the buyer and seller to perform specific
tasks. Whether you are the seller
or buyer of the purchase contract, there are specific dates for the
contingencies to be released. These
dates and results determine if you will close your sale.
All contingency escape clauses are important. The financing commitment is
one of the most crucial to be released.
Federal lending regulations have changed buyer and house
qualifications. Credit score, tax
returns, job time, and down payment need to be verified in writing. If the buyer qualifies, the house
requirements are then determined by an appraiser. The appraiser determines the bank’s risk
for default by comparing the subject house to the three closed similar house
sale prices. The house also needs
to be in good repair to pass the appraisal conditions.
Inspection contingencies are the next step toward closing. Within 10 days from the accepted offer
the buyer may perform inspections of concern with the house. They may included radon, termite,
septic, well, home inspection, lead paint, and mold inspections. Any concerns will need to be negotiated
between the buyer and seller.
Transferring a clear title is usually the last contingency to be
released. Extension of the abstract
and review of any unpaid liens or encumbrances will need to be released prior to
recording the warranty deed. Liens
may be a mortgage, tax liens, or unpaid judgments. Any title objections will halt the
sale.
Both buyer and seller have a commitment toward following the purchase
contract contingency deadlines.
Having the legal releases from the sale may effect whether the sale moves
from pending to sold. The earnest
money holds the buyer to the commitment to close while moving through the sales
contract. To ensure your houses
closes, hire a full time professional Realtor or legal representative to handle
one of the most important financial agreements of your life.
Heather Morris CRS, GRI, ABR, CLHMS
Broker Associate Skogman Realty
