Your Guide to
Buying Real Estate
Your Realtor ® is Your Link to Real Estate!
Learn more about the Shore.
What you should know about our site.
Working with a Realtor® is the most common and
preferred approach to home buying and selling. We have provided links to local
Realtor companies that offer full service and coverage of the Eastern Shore of
Virginia. A Realtor® will be familiar with
the available housing inventory in the location, size and price range you
desire. Through the Eastern Shore Association of
Realtors
MLS, the Realtor® will have virtually unlimited access to information about
property listed for sale in the area. The Realtor® is also in a position to
provide you with valuable information on other resources that can assist you in
successfully consummating a transaction for purchase of real estate.
The Offer
Once you have found your "Dream Home," it will be necessary to make an "offer"
in writing to purchase the property. Generally, contracts for the purchase and
sale of real estate must be in writing to be valid and enforceable. The
offer will usually be in the form of a contract presented through the Realtor®.
The preferred standard form is pre-printed and provided by the local Association
of Realtors®. Most Realtors® and attorneys are familiar with the "fine print,"
and the Realtor® will be knowledgeable about completing the forms. Ask the
Realtor® for the Standard Resale Contract Form used here so you can become
familiar with its standard provisions
before submitting an offer. Specific forms are available for resale properties
and unimproved land. The KEY elements of the offer, which will become
your contract when "ratified," are highlighted below. Please note carefully that
no specific contract form is required and contract provisions may vary widely.
You should review the specific form proposed for use in your transaction
carefully before proceeding.
Price. The Purchase Price is the amount that you offer to buy the property.
Deposit. The Deposit is the amount of money (cash or check) submitted with the contract as a good faith offer to purchase the property. These funds will be held by the Realtor® or the settlement company and credited to you at the time of settlement.
Down Payment. The Down payment is the amount of your own money, including the deposit, that you will be using to pay the purchase price. This amount, together with your mortgage loan amount will equal the Purchase Price.
Financing. The Financing section of the contract/offer sets out the amount of money to be borrowed, the type of loan product
(e.g. 30-yr. fixed), the acceptable rate of interest, monthly payments and points (see glossary) associated with the mortgage loan. It will also indicate whether you are asking the Seller to pay any of the points associated with the loan. Most residential contracts contain a financing contingency. This clause normally provides that if you do not obtain a written loan approval or "commitment" from a lender within a "specified time period," the contract may be declared "null and void." The clause normally provides that if you have been declined approval for a mortgage loan, despite your good faith efforts to obtain it, your earnest money deposit will be refunded. This contingency, however, generally has very specific notice provisions that must be followed.
Title. The section on Examination Of Title And Costs specifies how title will be taken (see glossary) and who will conduct settlement. It is always your right to select BAY BREEZE TITLE & SETTLEMENT as your settlement services provider. This section usually provides that the transfer and recordation taxes, which are paid to the state and local governments, are shared equally between you and the seller, unless otherwise specified.
Walk-Through. After contract ratification you are generally entitled to only one inspection of the premises prior to
settlement. The purpose of this "walk-through" is to determine that, at the time of settlement, the property meets the standards established by your agreement. Under the typical "Property Condition" paragraph, all mechanical, electrical, plumbing, heating and air conditioning systems must be in "working order." This paragraph also normally requires that the property be delivered "broom clean" and substantially in the same condition as the time the contract was ratified. Other general and specific inspections or repair requirements can be negotiated with the Seller and added to the contract in a "contract addendum."
Settlement Date. This is the date on which the transfer and loan documents will be signed, and the parties will meet to exchange the title and keys for your funds. Sometimes, the seller will sign the deed and HUD and other forms with their Attorney prior to the designated time for the buyer's settlement. These documents are then sent to the settlement office for the purchaser to complete with their settlement agent. Taxes, assessments and homeowner/condo fees, if any, will be adjusted as of this date. In scheduling your settlement, it is wise to consider the time necessary for loan approval, processing and circumstances special to your transaction.
As noted above, these provisions are illustrative of typical provisions found in widely used, standardized contract forms. Careful review of the specific form proposed for use in your transaction is necessary.
Contract Presentation and Ratification
Once a written offer has been completed by you, the offer will be presented through the Realtor® to the seller. The seller may accept the terms, reject them or counter-offer new terms. Once the terms have been agreed upon, both the buyer and the seller must sign the written contract. Unless special arrangements have been otherwise agreed to in writing by the parties, the earnest money deposit must be tendered with the signed contract. When these conditions have been met, the contract will be said to have been "ratified." Copies of the ratified contract will be provided to all parties.
Once the contract has been ratified you are ready to schedule any home inspections agreed to in the contract and to instruct BAY BREEZE TITLE & SETTLEMENT to begin preparations for settlement. You must also select a lender and complete the appropriate applications for financing as specified in your contract.
We are committed to providing you with outstanding service!
Contact us today to schedule your real estate closing!
Bay Breeze Title & Settlement
Real Estate Closing, Real Estate Settlements & Title Insurance
We Value Your Trust!
(757) 678-7200
We will be happy to help you!
6058 Willow Oak Road
P.O. Box 1005
Eastville, VA 23347-1005
