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Terms in real estate transactions

When purchasing a piece of property here in Glen Carbon, one of the first documents signed after an offer is accepted is the purchase and sale contract. Understanding the language in the agreement could help put a buyer's mind at ease. A couple of the terms relating to real estate transactions are discussed below.

The settlement date is the date the closing will occur. This is when the sale becomes final. Monies are exchanged for keys to the property.

When attempting to schedule this date, it should allow enough time for all of the due diligence, such as a title search and home inspection, to occur. Without enough time to complete these and other items on the checklist, a buyer could lose his or her earnest money. It may be possible to reschedule this date if needed, but the seller must agree.

The settlement date should not be confused with the possession date. The date that the buyer may take possession of the property is the date that the buyer can move into the property. This is not always the same date as the closing. The buyer may agree to give the seller time to vacate or for agreed upon repairs to be done. In the alternative, the seller may allow the buyer to move in early depending on the circumstances.

Purchase and sale agreements for real estate transactions here in Glen Carbon or elsewhere require careful attention to detail, especially as they pertain to these to different dates. Otherwise, a buyer could think that he or she will be able to move into the property on the day the deal closes when it may not be the case. Of course, it would be prudent to review all of the provisions and terms in the contract to make sure they do not infringe on any of the buyer's rights.

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