Palos Verdes Lifestyle - Norma Toering's Palos Verdes Homes Blog

My morning email greeted me with this question from a first time home buyer: What do we need to do during the 17-day inspection contingency period? 

I sent her the following reply (names and address deleted to protect the privacy of my clients):

 Congratulations on the acceptance of your offer to purchase a home.  Escrow is open and the contingency clock is ticking as the inspection phase of the purchase gets underway.

During the 17 day contingency period you will perform the following:

1)   Deliver your deposit check to escrow

2)   Conduct a home inspection (and any other inspections needed or wanted).

3)   Review and approve the Preliminary Title Report.

4)   Review and approve all Seller Disclosures

5)   Review and approve Termite Report

6)   Review and return Escrow Instructions

7)   Make sure lender has all information needed to approve your loan

8)   Request repairs or credit based on Home Inspection Report

9)   Receive appraisal and if not at value re-negotiate and resolve appraisal issue with sellers

10)  Remove all contingencies of the contract including loan.

We do not have any of the above reports/documents yet.  We will arrange to meet with you to review and sign.

After all contingencies are removed you will need to have your home insurance agent send proof of insurance to escrow as the lender will not fund the loan until an insurance binder is received.   Your insurance agent will need escrow's contact information and you will have it once you receive your copy of the escrow instructions.

Other tasks to perform after the contingencies are removed:

1)  Place the utilities in your name as soon as we have a definite close of escrow date.

2)  Conduct a final walk-through of the property 3-5 days prior to close of escrow to make sure any work requested was completed.

3)  Wire remaining closing funds to escrow 3-5 business days prior to close of escrow.

During the escrow period there will be many forms to sign:

1)   California Association of Realtor requires the buyer to sign approximately 30 documents.

2)   REMAX Palos Verdes Realty and the listing agent's company will add to the stack of documents.

3)   Escrow and Title companies also require numerous documents.

Once all requirements are met, the lender will issue loan docs for you to sign, fund the loan and the title company will record the sale.  Upon confirmation of recording by escrow I will give you the keys to your new home!

I'm sure other items and issues will surface during the escrow period and we will help you every step of the way.  Every sale and house presents a unique set of circumstances and keeps the process fluid and ever-evolving.  It is our goal to keep it as stress free as possible no matter what arises--as there's a solution to every problem.

 I must say I think this house is in better condition that most of the ones we viewed.  Your new lender is more responsive than your previous lender and the listing agent is on the ball.  I think you have a good team behind you.