“Home is a name, a word, it is a strong one; stronger than magician ever spoke, or spirit ever answered to, in the strongest conjuration.”
—Charles Dickens

Under Contract: There are still a few steps…

Most clients are thrilled when Stuart and Sally present them with a Buy/Sell Agreement for their property. “It’s over!” they think, “Our property is sold!”. Yet, there’s still much to be done. The sale of your property is not complete until the deed of ownership changes hands.

Stuart and Sally will carefully go over the Buy/Sell Agreement with you and explain every detail, beginning with price and terms. Some of the common areas that are potentially confusing for sellers are discussed below.

Contingencies are part of every Buy/Sale Agreement. They are issues that must be resolved, either by the Buyer or Seller, in order for the property to close. Each contingency includes a date for completion.

Common contingencies include:

• Title Insurance: Stuart and Sally will order a Preliminary Title Search on your property within days of a signed Buy/Sell contract. Once the Buyer receives the Preliminary Title Commitment, they usually have 10 working days to accept or reject the insurance. Title Insurance is typically your largest expense in the contract and closing portion of selling your property. You may choose your own Title Company, or we will direct you to the one we feel is best suited for you. The cost of Title Insurance is not paid until closing, and is automatically deducted from your Settlement Statement. The rate for the insurance is regulated by the State of Montana and is a percentage of the selling cost of your home.

• Buyer Financing. The Buyer will have a time frame in which to arrange their financing. This generally includes an appraisal, which is ordered by the Buyer’s lender and can take upwards to 3 or 4 weeks in a market as active as the Gallatin Valley. Should your property appraise for less than the Buy-Sell contract, the Buyer may ask to renegotiate the contract price as the financing institution will tie the loan amount to the appraisal. The seller may or may not elect to negotiate.

• Property Inspection: The Buyer is responsible for inspecting the property, both physically and from a legal perspective. The Buyer will pay for inspections and will arrange to conduct them within the contract allotted time frame. Should the property require repairs or radon mitigation (a common occurrence in Montana that is easily resolvable), the Buyer will submit an Inspection Notice with a time frame to do the repairs at your expense, or to ask for a credit at closing to make the repairs themselves, or to terminate the contract. You will need to sign off on inspections, and then to submit proof of complying with any repairs or mitigation you have agreed to do at your expense.

• Insurance: The Buy/Sell contract provides for the buyer to be able to obtain homeowners insurance at terms and conditions acceptable to the buyer.

• Homeowner Covenants: Stuart and Sally will provide Homeowner’s Association Covenants on applicable properties to the Buyer for their inspection.

• Additional Provisions: Many Buy/Sell Agreements include provisions specific to a property or a closing. Stuart and Sally will carefully go over any provisions with you and how they impact your contract.

• Closing and Possession: Well before you close, you will need to arrange for your move. Stuart and Sally will help you find a replacement property, even one out of state. Possession of your existing property is generally on the day of the Deed being recorded, which is often times the same day as closing, or the following day if the closing is too late in the day to be recorded. A few days prior to closing, the Buyer may wish to do a final walk-through to insure that the property is in the condition they expect and that all repairs have been completed. You will want to arrange for the billing names on utilities to be switched. You will need to arrange to have your possessions moved. Stuart and Sally will provide you with a list of competent movers. It is a good idea to book early as they also get scheduled well in advance.

• Closing: For the actual closing, you will be provided with a Settlement Statement prior to closing day. This will reflect all expenses taken out, including pro-rated taxes, Homeowner Association dues, any special assessments, loan/mortgage balances on your property, title insurance, real estate commissions, and closing costs, which are generally split between Buyer and Seller. Closing costs in Montana are minimal—generally under $300, or $150 to you. You will decide how and where you wish your funds deposited. Closing itself is a quick process, either held at the Title Insurance Company, or conducted via documents that are sent to you, signed and notarized by you, and returned to the Title Company via Overnight Courier.

Stuart and Sally will guide and counsel you through every step of the process!

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Call us at: 406-556-5013
e-mail: contact@stuartandsally.com