+ what is the Seller's Disclosure Notice ?

The Seller's Disclosure Notice is a required document in a real estate transaction that provides the buyer with the details of the property. The Seller's Disclosure Notice was promulgated by the Texas Real Estate Commission for the use in residential real estate contracts and is required to be provided by the seller on residential transactions.

+ what is the termination option period ?

The termination option period is the amount of time a buyer has to terminate the contract without restrictions. Most buyers use this opportunity to perform property inspections and negotiate any repairs needed on the home. The sales contract states that the buyer has the unrestricted right to terminate the contract during this period of time.

+ What is the option fee?

The option fee is the money provided to the seller in exchange for time a buyer has to terminate the contract without restrictions during the option period. The option fee is provided to the title company along with any earnest money deposit. Title holds this money until closing.

+ Should the seller deposit the option check?

Yes. this check needs to be cashed or deposited once it is received by the title company.

+ What is earnest money?

The earnest money is a good faith deposit provided by the buyer to show they are serious about purchasing the home. When a buyer and seller enter into a contract, the seller takes the home off the market while the transaction moves through the entire process to closing. The earnest money is delivered to the title company and held in an escrow account until closing.

+ Should the seller leave the house for the inspection?

Yes, we always recommend that sellers leave the property for an inspection. Typically, the buyer and buyer's agent will come to the inspection to review the results, and it is best if the seller is not present.

+ How long does the inspection last?

A property inspection typically lasts about 4 hours. It could take longer if the inspector needs to check more items than originally expected or if the buyer has multiple inspectors at the property.

+ When does the seller receive the inspection results?

It takes at least 24 hours before the buyer receives the inspection report. After that, the buyer's agent will contact the listing agent to discuss any issues or requests for repairs. Any information that the listing agent receives about the inspection will immediately be shared with the seller.

+ What is the 3-day HOA contingency?

The 3-Day HOA contingency related to the delivery of the HOA Resale Certificates states that the buyer has 3 days to terminate the contract, and receive their earnest money back, after receiveing the Resale Certificate. Due to this 3-day contingency, we always recommend that a seller immediately pays any fee required by their HOA to start the resale certificate process. The title company will handle the details for ordering the documents and delivering the information to the buyer, and the inital payment to the HOA is usually the only seller responsiblity on this part of the transaction.

+ What is the HOA Resale Certificate?

The resale certificate provides specific information about the home and its standing in the homeowners association. It is provided to the title company and then delivered to the buyers. It includes the bylaws, restrictions, any past due payments to the association, pending violations, unpaid violations, unpaid special assessments and fees that are due upon closing.

+ What is the appraisal?

An appraisal is the estimated value of a home determined by a licensed appraisers review of the property and its comparison to recently sold homes in the area to estimate the value. The appraisal is ordered by the lender/buyer in a real estate transaction.

+ What happens if the appraisal is below the sales price?

With real estate prices in north Texas rapidly increasing, it is possible that a sales price is higher than the appraisal price determined by the licensed appraiser. If the contract is contingent on an appraisal then a few things can happen if the appraisal is lower than expected.

1. Rebut the appraisal.
2. Bring in the extra cash necessary to make up the appraisal shortfall.
3. Change financing to a lower down payment option, to free up cash to make up the shortfall.
4. Negotiate a price reduction with the seller.
5. Order a new appraisal.

+ Will the buyer perform a final walk thru?

In most cases, the buyer does schedule a final walk thru a few days before the closing. This is common practice and most buyer will want to see the home one last time before signing any purchase paperwork.

+ Does a seller need to leave the house for a final walk thru?

We always recommend that a seller leaves the house any time the buyer has a scheduled showing. This includes the inspection, and any final walk thru. This time will be the last opportunity for a buyer to see the property before signing their purchase paperwork.