7. Follow-Ups, Sign, Fund, Closing, SOLD

Follow-Up Process

From the moment the contract is signed until closing, your agent should maintain regular communication with your lender, title/escrow company, inspectors, and repair professionals to ensure every detail stays on track. For a hands-on approach, attention to detail is crucial—you can even monitor your agent’s follow-up to be confident nothing is missed.

Timelines

In Arizona residential purchase contracts, many key items are time-sensitive and governed by specific deadlines outlined in the agreement. These timelines are critical for ensuring the contract progresses smoothly. Below are some of the most common time-based items:

1. Earnest Money Deposit

• Deadline: Specified in the contract, typically within a certain number of days after the contract is accepted.
• Purpose: Demonstrates the buyer’s commitment to the purchase.

2. Inspection Period

• Standard Timeframe: 10 calendar days (or as agreed upon in the contract).
• Purpose: Allows the buyer to conduct inspections of the property and request repairs or cancel the contract based on findings.

3. Seller’s Disclosure Statement (SPDS)

• Deadline: Must be provided by the seller within a specified number of days (often 3 days after contract acceptance).
• Purpose: Ensures the buyer is informed about the property’s condition and any known defects.

4. Insurance Claims History

• Deadline: The seller is required to provide a 5-year insurance claims history (if applicable) within a certain number of days after contract acceptance.
• Purpose: Helps the buyer assess potential risks or issues with the property.

5. Loan Application and Approval

• Deadline: The buyer must submit a loan application within a specific timeframe (e.g., 3 days after contract acceptance) and secure loan approval by the specified date.
• Purpose: Ensures financing is in place to complete the purchase.

6. Appraisal

• Deadline: Must be completed within the specified time, often tied to the financing contingency.
• Purpose: Confirms the property value meets or exceeds the purchase price for loan approval.

7. Title Commitment and Review

• Deadline: The buyer is given a specific number of days to review the title commitment after it is provided by the title company.
• Purpose: Ensures the buyer is aware of any title issues or encumbrances.

8. Cure Period

• Standard Timeframe: 3 days.
• Purpose: Allows the breaching party a limited time to remedy any contractual breaches.

9. Closing Date

• Deadline: The agreed-upon closing date is specified in the contract.
• Purpose: Marks the final date for transferring ownership and funds.

10. Possession Date

• Deadline: Often occurs on the closing date or as negotiated in the contract.
• Purpose: Specifies when the buyer takes possession of the property.

11. Contingency Removal

• Deadline: Contingencies, such as financing or inspections, must be resolved by specified dates.
• Purpose: Ensures all conditions of the contract are satisfied within agreed timeframes.

Adhering to these timelines is essential, as failure to meet deadlines can lead to contract breaches, termination, or legal disputes. Always consult your real estate agent or attorney for guidance on managing these deadlines effectively.

Breaches

 Stay informed about your contractual obligations and those of the seller. If you suspect a breach of contract on either side, consult a Realtor or legal advisor to avoid costly mistakes. Legal procedures must be followed, such as issuing a “3-Day Cure Notice.” 

In an Arizona residential purchase contract, a “cure notice” is a formal written notification from one party to the other, specifying a particular breach of the contract. It provides the breaching party with a designated timeframe (typically 3-5 days) to address and resolve the issue.

Final Walk-Thru

Schedule a final walk-through at least a day before closing, to confirm that allagreed-upon repairs have been completed and the property remains in the same condition as when the contract was signed. Also verify that any other terms of the contract were completed. If any issues are identified, they should be resolved before closing or addressed by negotiating a Escrow Holdback.

An escrow holdback is a contractual arrangement in a real estate transaction where a portion of the seller’s proceeds is held in escrow after closing to address unresolved issues or contingencies. Common reasons for a holdback include incomplete repairs, pending permits, or unfinished contractual obligations. The funds are managed by the escrow or title company and are only released once the specified conditions are met within the agreed-upon timeframe. This arrangement allows the transaction to close on schedule while protecting the buyer’s interests and ensuring the seller fulfills their obligations. Clear terms and timelines are crucial to avoid disputes over the release of the funds. It is highly suggested to seek professional assistance with escrow holdbacks. Talk to your escrow officer.

Loan Documents

If all parties fulfill their responsibilities as planned, the lender should send the loan documents to the title company a day or two ahead of closing giving time for the buyers to sign. If delays or issues occur, promptly coordinate with your lender and escrow officer to resolve them.

Signing Final Documents

Once all conditions are met, the escrow company will prepare the necessary paperwork for the buyer and seller to review and sign. Signings are usually scheduled separately and should take place a day or two before the closing date.

Recording with County Assessor

After all parties have signed, the loan should fund, and then the escrow company will record the deed with the County Assessor’s Office. Once recorded, the sale is complete, and your home is officially SOLD!