An “Offer to
Purchase” is completed with a sales associate’s assistance, signed
by the buyer and accompanied by an earnest money deposit of 3%-5%
of the purchase price. This instrument creates a valid,
enforceable contract between the buyer and the seller.
Upon acceptance
of the “Offer to Purchase”, the earnest money deposit, which is
made payable to the listing broker, is placed in a non-interest
bearing account until closing.
Several
contingencies are typically included in the sales contract,
including the ability of the buyer to obtain financing, a termite
inspection and an over-all house inspection (at the buyer’s
expense). Occasionally, there is a contingency for the sale of
the buyer’s present home. In this case, the seller’s home is
usually kept on the market for this period. The buyer is
sometimes given a short period of time to negate this contingency
in the event a subsequent offer is acceptable to the seller.
Fixtures and
personal property are referenced in the sales contract. Any items
that the buyer wishes to stay within the home should be listed in
the contract.
Adjustments and
prorations are specified in the sales contract.
Real property in
North Carolina is customarily conveyed by a General Warranty Deed
at closing.
It is customary
for the seller to be automatically granted an extension for
closing for a reasonable time to perfect any flaw found in the
title. If the buyer defaults on the contract, the deposit is
forfeited but other remedies are still available to the seller to
pursue.
The average
time from the acceptance of the sales contract to closing
(Transfer of Title) is 30-60 days.
