Escrow has been opened by your listing agent, now comes the paperwork. Your Realtor will have you fill out and sign all the necessary disclosures that you as the owner are required to do according to the California Purchase Contract.
1. Transfer Disclosure which allows a Seller to state the items and condition of the property.
2. Water heater/smoke alarm disclosure which tells a Buyer that you have properly installed and strapped the water heater and installed smoke alarms as needed.
3. Lead Based Paint Disclosure if your house was built before 1978.
4. Seller Property Questionnaire goes in to detail about any repairs made to the property, deaths that might have occurred in the last 3 years, any neighborhood noises and any other known material fact.
5. Termite inspection report and completion of work report.
6. Natural Hazards Disclosure stating where flood, earthquake, fire zones are located in the area of the property. This is a report supplied by a reputable company and paid for by the Seller.
7. Most Real Estate agencies have their own local disclosures that include a myriad of things.
8. The escrow instructions also need to be signed and sent back to the escrow officer.
The California Purchase contract allows 17 days for the Buyers to conduct all inspections. As the Seller, your part is to allow access to your home for any and all inspections. The inspections are all at the Buyer’s expense. After the inspections are complete and the Buyers are satisfied as to the condition of the property, they might have a Request for Repair list of items that they would like you to fix. This is a negotiable thing and quite frankly a part of the process where communications between both parties can break down. Remember, the Buyers think they are paying top dollar for your home while you, the Seller think that the Buyers are getting a “deal” on your beautiful home. Fairness always wins out.
Once the 17 day inspection period is up, your Realtor will ask the Buyer to remove all their contingencies. In other words, the Buyers will sign the Contingency Removal and that means that they are moving forward with the purchase. This is a big step for both parties because now there is commitment.
Of course there is packing to do and moving plans to be arranged. Then about 5 days before the close of escrow the Buyers will request a Final Walk Thru (Verification of Property Condition). Any repairs that were agreed upon will be checked by the Buyers as will the general condition of the property. The property needs to be maintained during escrow and kept reasonably in the same condition as on the day of acceptance of the offer. This is also a great time to talk with the Buyers about how to operate the major components of the home – A/C, heater, pool equipment and sprinklers. It is also a time to share the gardener’s phone number, when is trash day, etc.
In my last post I gave you the numbers for 7 Southern California – Inland Empire cities. I could feel that the housing inventory was shrinking by the lack of homes I’ve been able to find for buyers but little did I realize by how much. Figuring out the numbers and seeing that inventory is down 64% – well that is amazing – kind of like being in the eye of a hurricane! The real estate company I work for has its corporate offices in Orange County. The real estate offices there have been talking for months about the shrinking inventory and I guess that trend has come to the Inland Empire.
