Congratulations! You're officially under contract! Take a second to celebrate! 💃🕺
Now, that you've celebrated! Let's get down to business. There is one think you're going to need to do pretty fast. Delivery of the EARNEST MONEY AND OPTION FEE to the title company. This is a very important step. This must be done within 3 days of the executed contract. On you CLOSING TIMELINE, you will see the date they are due and the title companies information.
The amount of the check will be the
EARNEST MONEY DOLLAR AMOUNT + OPTION FEE AMOUNT
You have 3 main options of delivery:
Wire directly to the title company: If you prefer to wire the total amount directly to the title company, you're welcome to do so. You must call the title company directly to get their wiring instructions. Wire fraud is a major issue these days, please do not ever use wiring instructions sent to you through email. This also will need to be completed by the deadline below.
Personal Check: You are able to write a personal check directly to the title company for the total amount if you prefer. This check will need to physically brought to the title company. If you prefer this method and you can't get it to title by the deadline, please let us know so we can make arraignments to pick up the check and deliver it to the title company. The check needs to be made out directly to the title company.
Secure portal: Each title company is different, but most also now have a secure portal service (something similar to PayPal or Venmo) where you can send the total amount electronically without the expense of a wire. Discuss with the title agent directly if you prefer this option. This is usually the easiest option.
The day after your contract was executed will begin your OPTION PERIOD. This option period will be one of the things that is negotiated in the contract.
This will be the time for you to do any due diligence on the house you want in order to make sure you want to move forward with the purchase. One of those things are inspection(s) and negotiating any repairs that might need to be addressed.
When purchasing an option, you are purchasing an option to terminate the contract and get your earnest money back FOR ANY REASON. In fact, you don't even have to give the sellers a reason. This is why inspections are important to do during this time. The option period would end at 5pm on the last day.
Executed Contract: 2/22/22 with a 5 day option period
Day 1 for Option Period: 2/23/22
End of the Option Period: 2/27/22 at 5pm
If you do opt out, you WILL lose your option fee. If you DO NOT opt out, then the option fee will be a credit to you on the closing disclosure.
Your specific dates will be on your CLOSING TIMELINE. Your agent will keep track and make sure you are ready to move forward before the end of the option period.
Please reach out to us if you have any questions or concerns.