The Real Estate Transaction

It is wise to talk to a mortgage loan officer to discuss financing options and have a pre-approval letter available submitted with an offer to purchase. This letter indicates financial strength and in some cases helps a negotiation position. A real estate agent will be glad to give you three references. Coldwell Banker's mortgage division, CENDANT Mortgage 1-888-240-2975, is available 24 hours a day for up-to the minute pre-approvals, financial programs and direction.

If you use professionals, the procedures for buying or selling are quite straightforward. While your real estate agent is representing you throughout the process, once an offer is accepted, it is customary for both the buyer and seller to have legal representation. The following is a typical procedure for the purchasing of a home in Connecticut.

The Buyer submits a written Offer to Purchase (sometimes known as a "binder" or Purchase Agreement) which should specify all possible contingencies.

These are the forms required in the purchase transaction and will be presented to the seller's real estate agent by the buyer's real estate agent:

1 . Offer to Purchase form is used as the written offer and presented to the list agent. Items are requested and negotiated based on price, closing terms, financing, inclusions, exclusions of property, environmental and building inspection and mortgage contingencies.

2. Addendum to Purchase Agreement (Lead Paint Addendum), a written agreement explaining that the buyer has 10 days to determine if there is lead paint that has to be removed, in which case the seller and buyer can negotiate its removal. The buyer has 7 days to determine how to deal with it or cancel the contracts.

3. Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards explaining the hazards of lead paint.

4. Agency Disclosure Form indicating how real estate agents represent the buyer and seller in the transaction.

5. Dual Agent Consent Agreement- Seller and Buyer acknowledge and agree that the Broker and the agents are representing both the Buyer and Seller in the purchase and sale of the transaction.

6. A 1% down payment (also known as earnest money) is expected and is returned if your offer is not accepted.

7. Broker Escrow Agreement Sale explaining Connecticut law in how the 1 % deposit will be held until contract.

8. Residential Property Condition Disclosure Report, required of all sellers disclosing any known defects or material facts about the property. The seller will be required to credit the purchaser with the sum of $300.00 at closing if the seller fails to furnish this report as required. (Public Act No. 95-311). Purchasers acknowledge receiving the Disclosure by their signatures. 

• Any surveys, property maps, building plans, service warranties, oil tank insurance policy, etc. are requested. 
• Contracts are usually signed within ten business days of the accepted Offer to Purchase. 
• Closing can take place within 30-60 days of the accepted offer; the time is usually negotiated between the buyer and seller. 
• Your Offer is negotiated through your real estate agent. Possible negotiating strategies will be fully discussed with you: What to Offer, How to Counter, What and How Much to ask for, terms that are flexible and fixed 
• Every decision is yours to make!