Nail down contract details before setting dates in a home-sale contract

When it comes to home purchase contracts, there are so many important dates.

To clarify the timing of events, the contract was recently revised to place most of the dates on the first few pages.

And if you are involved in a contract that includes the sale of one home to be able to buy another home, and if those sellers are contingent on the purchase of a replacement home, the dates can get very convoluted.

For example, if you make an offer to purchase a house using funds that will only be available to you once you sell your current house, be aware of the time clock as you negotiate the other terms and conditions of the contract. Be aware that the clock does not start ticking on the terms for the contingency until the contract has been fully executed.

This means that if you get into a cycle of counter offers on things like the purchase price or the amount of the initial deposit, this can extend the contract start date.

Some people can’t take time away from work for personal business. Others may not have the means to execute electronic signatures. And one or more of the parties involved may be out of town or attending to other obligations.

So, be aware of the timing of the agreements you make, the negotiations you undertake, and the capability of the parties involved to get everything straightened out up and down the chain of related events.

The best thing to do is to get all the deal points hammered out up front. This requires some trust and lots of communication – including phone calls, text messages, emails, and quite possibly face-to-face meetings.

Say, for example, you are making an offer to purchase contingent upon the sale of your home, and you’ve given your buyers 10 days to get their home sold. If it takes five days to get your offer details hammered out and the offer signed, the buyers only have five days left.

Getting the deal points worked out and in the contract the first time around can keep the timing more manageable.

Leslie Sargent Eskildsen is an agent with RealtyOne Group West and a member of the California Association of Realtors’ board of directors. She can be reached at 949-678-3373 or [email protected].