Overview of a Transaction
Accept Offer > Submit to Title/Lender > Inspections >
Municipal Requirements > Appraisal > Title Work > Clear to Close!
While each transaction is different, this page can serve as a guide for a general transaction. When in doubt, check your agreement of sale as that should outline who is responsible for what.
1) Buyer's agent submits an offer. No matter how low or ridiculous an offer is, the listing agent legally has to present it to the seller.
2) Negotiate the offer, if needed.
3) Seller signs offer before "Time is of the Essence" clause on line 52 of the AOS. If the seller signs after the time stated on that line, cross the time out, then have both the buyer and seller initial next to the change. Without both initials from both sides, it's not a valid contract.
4) Day 1 of the contract is the day AFTER the last initial/signature on the contract. This is when all timelines in the contract start.
5) Once the contract is signed, the buyer chooses a title company to submit the contract to. It's the buyer's choice legally, and the buyer's agent should tell the listing agent who the title company is so they can get started. The default timeframe in the contract is it has to be submitted to a title company within 7 days.
6) The buyer also needs to complete a mortgage application (if not paying cash/not already submitted). Default of this is 7 days as well. The title company will need to touch base with the lender, so the buyers agent should connect them.
7) The buyer needs to do their inspections within the timeline in the contract, if elected. This is ALL inspections. Water source testing, sewer camera, general home inspection, pest inspection. At the end of the inspection time period, the buyer's agent needs to submit either a "Buyer's Reply to Inspection" or a Termination.
8) During the inspections, the listing agent should submit a request for a home warranty (if applicable). The invoice should be given to the title company.
9) During inspections, the seller should be handling the municipal requirements. These can take a while to schedule, so getting them taken care of ASAP is encouraged. This can include a dye test and/or an occupancy inspection that is outlined by the municipality that the house is in. So for example, City of Pittsburgh sometimes requires a dye test, and does not have an occupancy inspection. Turtle Creek does not require a dye test, but does have occupancy inspections/permits. The contract automatically designates the seller to handle this, but the buyer could be responsible for it if it's written on the last page of the contract.
10) After the buyer's agent sends the reply for inspection, the listing agent can talk it over with the seller and negotiate any repairs/price change.
11) Once the reply to inspection is agreed upon, both the buyer and seller need to sign a "CTA" to make if official. The buyer's agent usually writes up the language and presents it the listing agent. Repairs are on one CTA that does not go to the lender/title. Price changes, seller assist, or any other financial changes go on another CTA that does go to lender/title.
12) At some point, the lender will hire an appraiser (if getting a loan). The appraiser will reach out to the listing agent to schedule an appointment to see the property. The seller should ensure the basics are all covered as far as safety items (hand rails, GFCI, no peeling paint).
13) The appraiser will usually turn the report around in about a week, and state the value it came in at as well as if there are any needed repairs.
14) The title company will request info from the buyer and seller. Each agent should ensure that it's completed ASAP so that it doesn't delay closing.
15) Once the occupancy inspection and the dye test are completed, the municipality will release the "lien letters" that state what amounts are due on the property. This includes taxes, mechanic liens, and sometimes past water bills. Without the municipal requirements being completed, the title company cannot finalize the numbers in order to close.
16) Once the lender give the "clear to close" or c2c, the title company can balance numbers with them. The buyer usually chooses the location and time of closing, but the seller can usually sign remotely beforehand if they don't want to join the closing.
17) Buyer's agent schedules a final walkthrough, and arranges a key pickup if they are not going to closing.
18) Everyone signs and the deal is funded!
1) Buyer's agent submits an offer. No matter how low or ridiculous an offer is, the listing agent legally has to present it to the seller.
2) Negotiate the offer, if needed.
3) Seller signs offer before "Time is of the Essence" clause on line 52 of the AOS. If the seller signs after the time stated on that line, cross the time out, then have both the buyer and seller initial next to the change. Without both initials from both sides, it's not a valid contract.
4) Day 1 of the contract is the day AFTER the last initial/signature on the contract. This is when all timelines in the contract start.
5) Once the contract is signed, the buyer chooses a title company to submit the contract to. It's the buyer's choice legally, and the buyer's agent should tell the listing agent who the title company is so they can get started. The default timeframe in the contract is it has to be submitted to a title company within 7 days.
6) The buyer also needs to complete a mortgage application (if not paying cash/not already submitted). Default of this is 7 days as well. The title company will need to touch base with the lender, so the buyers agent should connect them.
7) The buyer needs to do their inspections within the timeline in the contract, if elected. This is ALL inspections. Water source testing, sewer camera, general home inspection, pest inspection. At the end of the inspection time period, the buyer's agent needs to submit either a "Buyer's Reply to Inspection" or a Termination.
8) During the inspections, the listing agent should submit a request for a home warranty (if applicable). The invoice should be given to the title company.
9) During inspections, the seller should be handling the municipal requirements. These can take a while to schedule, so getting them taken care of ASAP is encouraged. This can include a dye test and/or an occupancy inspection that is outlined by the municipality that the house is in. So for example, City of Pittsburgh sometimes requires a dye test, and does not have an occupancy inspection. Turtle Creek does not require a dye test, but does have occupancy inspections/permits. The contract automatically designates the seller to handle this, but the buyer could be responsible for it if it's written on the last page of the contract.
10) After the buyer's agent sends the reply for inspection, the listing agent can talk it over with the seller and negotiate any repairs/price change.
11) Once the reply to inspection is agreed upon, both the buyer and seller need to sign a "CTA" to make if official. The buyer's agent usually writes up the language and presents it the listing agent. Repairs are on one CTA that does not go to the lender/title. Price changes, seller assist, or any other financial changes go on another CTA that does go to lender/title.
12) At some point, the lender will hire an appraiser (if getting a loan). The appraiser will reach out to the listing agent to schedule an appointment to see the property. The seller should ensure the basics are all covered as far as safety items (hand rails, GFCI, no peeling paint).
13) The appraiser will usually turn the report around in about a week, and state the value it came in at as well as if there are any needed repairs.
14) The title company will request info from the buyer and seller. Each agent should ensure that it's completed ASAP so that it doesn't delay closing.
15) Once the occupancy inspection and the dye test are completed, the municipality will release the "lien letters" that state what amounts are due on the property. This includes taxes, mechanic liens, and sometimes past water bills. Without the municipal requirements being completed, the title company cannot finalize the numbers in order to close.
16) Once the lender give the "clear to close" or c2c, the title company can balance numbers with them. The buyer usually chooses the location and time of closing, but the seller can usually sign remotely beforehand if they don't want to join the closing.
17) Buyer's agent schedules a final walkthrough, and arranges a key pickup if they are not going to closing.
18) Everyone signs and the deal is funded!