The Typical Buying Process in Fairfield
In negotiating the purchase of your new home, the initial step will be to instruct your KMS agent to make an Offer to Purchase. This offer is in writing and accompanied by a deposit check (1% of the purchase price) to show “good faith”. The check will be deposited in the company’s escrow account within 24 hours of acceptance of the offer. The offer should include:
- The amount you are willing to pay
- Closing and occupancy dates
- Any contingencies, including obtaining a mortgage, building and pest
- Any personal property specifically included or excluded from the sale
As soon as both buyer and seller agree on a price and terms, the Offer to Purchase Agreement is signed by the seller and the 1% deposit is held in escrow.
Once the buyer and seller agree on terms:
- The buyer immediately applies and makes necessary arrangements for financing, arranges for building, pest, septic, well and any other agreed upon inspections with the expert guidance of KMS.
- The seller arranges with his or her attorney for the drawing of the Contact of Sale, based on the agreed upon terms.
- In Connecticut, the banks will generally only release funds to an attorney. It is required that a buyer be represented by a Connecticut attorney.
The Contract of Sale should always include, the following:
- Purchase price
- Mortgage contingency and dates, if any
- Quality of Title to be conveyed
- Date of possession
- Itemized list of personal property included in the sale
- Satisfactory building and pest inspections, etc.
The Contract is prepared by the seller’s attorney and forwarded to the buyer’s attorney. At contract signing by both parties, the remaining 9% of the agreed upon sales price is due by buyer to seller’s attorney, to be held in escrow until closing. It is local custom to release the 1% deposit check to the seller’s attorney’s escrow upon signing of contracts.
Prior to closing, a final “walk through” inspection of the home is completed by the buyer and KMS. The actual closing is a formal process where all parties sign the necessary paperwork and Title is transferred from the seller to the buyer. The buyer receives the house keys and deeds are then filed in the local records office.