How much will I need for a deposit at the time of contract for my purchase?
The accepted custom is within the range of 5 to 10 percent of the purchase price.
Will I receive interest on my deposit?
Generally, the deposit is held in escrow by the seller's attorney in his/her non-interest bearing trust account or by the broker in a non-interest bearing trust account until closing.
What do I do after I sign a real estate contract?
Generally, a three-day attorney review provision provides that the contract will be legally binding within three days unless an attorney for the buyer or the sellers refuses or disapproves of it. Therefore, after a contract is signed a professional must immediately review it. Your right to make changes will be lost after the three days.
When should I apply for a mortgage?
A well-drafted contract will contain a mortgage contingency clause, which provides a date by which a seller must obtain a mortgage commitment from a financial institution. Either party can void the contract if a mortgage cannot be obtained by this date. Therefore, the buyer should apply for a mortgage soon after the contract is signed by both parties so that a mortgage commitment is obtained within the mortgage contingency date.
What inspections should I have done?
A well-drafted contract will permit the buyer to have a home and termite inspection, as well as radon, water, and septic testing. There will be very specific time regulations for completion of these inspections. Under certain conditions a contract can be voided based on the results of these tests.
Who determines the time and place of closing?
Generally, the closing is conducted at the buyer's attorney's office. However, for a new construction the closing is usually at the builder's or (builder's attorney's) office. The closing date usually takes place 60 to 90 days after a contract is signed. However, it can be sooner or later as every deal is different.
Matthew H. Maschler, a lawyer in Boca Raton, Florida, is the owner of Matthew H. Maschler, Attorney at Law. Attorney Maschler practices law in Boca Raton, Florida in such areas as residential real estate law, securities law and general corporate governances. Attorney Maschler also involved in many matters related to legal disputes, real estate law, securities law, arbitration law, bankruptcy law and municipal law. Attorney Maschler is a member of the New York, New Jersey and Florida Bar.
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