- What is the Option Period? The Option Period is the period in which a buyer can elect to terminate the contract for any reason. A buyer purchases the Option for a specified number of days that is agreed by both the buyer and seller for a specified sum of money.
- Will I get Option Money Back? Not if you terminate. If you close, your option can be or cannot be credited to you at close. It depends on the terms of the contract.
- Will I get my Earnest Money Back? If you terminate within the option period you should receive your earnest money back. If you terminate outside of the option period, both the buyer and seller must sign a release of earnest money indicating which party the earnest money will be released.
- Should I buy Title Insurance? Yes
- When do I turn on (Buyer) or off (Seller) utilities? When there are no lease back provision, usually utilities are turned on the same day as closing. In case of a lease back, it depends on the contract. Plan in advance and give utility companies plenty of notice.
- What is “Funding”? Funding is the release of the funds from your lender to title company. The title company then disburses all monies to each party to the transaction.
- When will I get keys to the property? After funding.
- Who pays the real estate sales commission? Usually sellers pay the commission to the buyers agent and to the sellers agent.
- Do I need to do a final walk through? Yes. Buyers should walk through the home prior to closing in order to identify damage to the property that has occurred since the contract to purchase was executed.