What is Contingency?
The so-called “Contingency” refers to the prerequisites for the performance of the contract. If the specified conditions cannot be met, both parties can choose to terminate the contract, which does not constitute a breach of contract.
Escrow 17-25 Days
In the residential purchase agreement, buyers can put time-sensitive contingency according to their needs.
Generally, 17 days remove contingency will be written.
Example of a few basic Contingence, Home Inspection Contingency, Appraisal Contingency, Loan Contingency, etc.
Once time is up and the conditions are met
Buyers must fill out the Remove Contingency form.
These contingencies are not automatically removed when the date arrives.
In addition to Contingency, it is also necessary to follow up the progress of loans during this period. The loan company will first provide Conditional Approval. Then provide Final Approval, and Closing Disclosure. If there is no problem, the buyer signs the Loan Document. The lender will then allocate the loan amount and then the Lender will Issue Funding. The final step is for the seller to sign the Grand Deed
Five days before Escrow completes
Conduct a Final Walk Through, (which is not final inspection)
Make sure the house is in the same condition as when it was inspected. If repair is required, it can be inspected during final walk through
Close Escrow. This is to complete the Escrow
At this point the buyer will get the key.
Every transaction is different, and the details of Escrow will also be different.
The above is the basic process of Escrow Part 2. You can check the link for Escrow Part 1.
If you have any questions or demand about selling or purchasing homes, please contact me.