Congratulations! You're officially under contract! Take a second to celebrate! 💃🕺
Now, that you've celebrated! Let's get down to business...
The first deadline in the contract is the delivery of the EARNEST MONEY AND OPTION FEE to the title company. This is a very important step and must be done within 3 days of the executed contract. Your exact deadlines and title company information for this delivery will be in the 🎉 Congrats! You (almost) bought a home email we sent right after your contract was executed.
The amount of the fees will be the
EARNEST MONEY DOLLAR AMOUNT + OPTION FEE AMOUNT
There 3 main delivery options
WIRE: 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.
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 of them now have a secure portal app (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.
OPTION PERIOD
The day after your contract was executed your option period begins. This option period will be one of the things that is negotiated in the contract and the 🎉 Congrats! You (almost) bought a home email will have your exact beginning and end dates.
This is 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. Things like inspections, negotiate any repairs if needed, etc.
When we have negotiated an option period in the contract, 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.
Example:
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.
As always, please reach out to us if you have any questions or concerns.
Till next time!
RHT