Recently I wrote a post on The Post Offer Timeline for Buyers, and now, I am continuing that line of analysis of the buyer offer process by overviewing the documents that are usually submitted at the time of the offer:
1. Offer to Purchase Form – this details the purchase price, dates for the purchase and sale agreement (P&S) and closing, special provisions, exclusions and inclusions, additional provisions, escrow information, etc. As the name suggests, this form is basically the nuts and bolts of what you as the buyer are offering the seller. Click offer to purchase to see the GBREB standard offer to purchase form.
2. Offer to Purchase Contingency Addendum Form – this includes dates and information regarding your mortgage, inspection, pest, radon and lead paint contingencies. Click contingency form to see the standard GBREB contingency form.
3. Agency Disclosure Form – this is to inform the seller that your agent is working as your buyer’s agent or facilitator. Click agency disclosure to see the standard GBREB agency disclosure form.
4. Check – a copy of the check, usually for $1,000, made out to the listing firm is included to bind the offer. Once the offer is accepted, the check is given to the listing agent and usually “held” by the listing firm (in other words, deposited into the listing firm’s bank account).
5. Pre-Approval Letter and/or Letter of Funds – this gives the seller the confidence that you have been pre-approved to borrow and/or have the funds to buy the house. This sometimes comes just after the offer is submitted, but these days, most sellers won’t accept an offer until they see the pre-approval letter.
6. Lead Paint Form – this is provided by the listing agent and discloses whether the seller knows of any lead paint within the home and/or has any lead paint reports. It also gives you as the buyer a choice of whether you would like to test for lead paint or waive the inspection. Because the buyer needs to complete the form that the seller has already completed, this form is not always submitted at the time of the offer as the buyer doesn’t always have access to it. But the submission of the lead paint form usually follows quickly thereafter. Click lead paint form to see the standard GBREB lead paint form.
So that’s about it…. Are these the documents that you submitted when you put in an offer on your house? There can be other forms to sign with the offer (i.e., notice and consent to dual agency if this applies) or after the initial offer (i.e., seller’s statement of property condition, statement of seller’s preferences), but the above six documents are usually those that are submitted with the initial offer. Then the negotiations begin, and once the offer is accepted (fingers crossed), the offer and addendum documents will need to be revised to reflect the agreed-upon terms, conditions and dates. This is fabulous, and most importantly – Congratulations to all!
For more information on this or about the real estate market in Weston, Wellesley, Wayland and the surrounding towns or if you are considering selling your home, please contact me, Lisa Curlett (www.lisacurlett.com, 781-267-2844 or lisa.curlett@compass.com), to answer any questions or for a complimentary home appraisal.