Negotiating – the offer will include:
- The Amount You are willing to Pay
- Financing Terms
- Any personal property specifically included
- Closing & Occupancy Date
- Other contingencies, including inspections
The offer will be written on an OREF contract form. If the initial offer is not accepted by the seller, further negotiations will occur until both parties come to an agreement.
Earnest Money Deposit – at the time of acceptance of your offer (or at the time negotiated in the agreement), you will be required to make a deposit in the form of a personal check, cashiers check, or wire.
- The amount deposited will be kept in an escrow account with the escrow company.
- This money represents your sincerity in the attempt to purchase and is fully refundable if the offer is not accepted, if your loan is not approved or if some other condition in the contract is not met by the seller.
- The check will be made out to the escrow company and will be credited to you at closing as part of your down payment and/or closing costs.
Title Insurance – The lender and/or Buyer need a preliminary tile report when a property is sold to see what liens and encumbrances are against the property. Items that a preliminary title report show include:
- Easements of Record
- Restrictions, covenants and conditions
- Exact owner of record
- Legal description
When the subject property is final and the title company has recorded the necessary documents, they will issue a policy of title insurance to the new lender and the buyer showing clear title to the property and insuring against all items not on the exception list of the preliminary title report.