Contracts

Hey Bloggies...After the inspections are done, the buyer gives the OK to go ahead with the preparation of contracts. Some agents will ok this before the inspection, but I wait in case there is a change in the contracts due to inspection problems. One of three things can happen...The buyer can just agree to make any neccesary updates or repairs without compensation form the seller. Or,the buyer can request the repairs and updates be made or, most common, an agreed upon price reduction to compensate for the costs of inpsection concerns. The last two would require changes to the contract which adds to the time it takes for the transaction to come to fruition. Once the contracts are drawn up by the seller's attorney, they go to the buyer's attorney where they are reviewed and (if agreed to) signed by the buyers. This is the time the deposit goes into the attroney's escrow account. The contracts and most often the deposit are then forwarded to the seller's attorney for review and execution (signing) by the sellers..