The final walk-through should be arranged by your real estate agent to happen within 1 week of the closing date but preferably within the last 3 days before closing. Having it close to the closing date will leave much less room for surprises to occur, like unexpected damage to the home during moving.
The most ideal time for final walk-throughs should be as close to the closing day as possible, ideally after the seller or tenants have moved out. Some happen a day or two before closing. It can also be set on the closing day itself. It's a tight schedule, we know.
The final walk through is an important step in the closing process. California's stipulation 16 in the Residential Purchase Agreement allows property buyers to do a final walkthrough 5 days before closing.
Yes, although rare—it's possible for buyers to back out after completing their final walkthrough inspection. However, this type of situation would only occur if you discover something material during the walkthrough that had drastically changed from that described in the original contractual terms.
Do buyers really have to see a house that many times before they can officially say the house is theirs? The short answer: No, a final walkthrough is not required by law. However, it is in your best interest to do a final walkthrough before closing. With a purchase this big, you have nothing to gain and a lot to lose.
This part is important: Having the walkthrough near closing day means the house should be empty, giving you a good look at the whole place as a blank canvas. The seller should have moved out their stuff and hopefully not damaged floors and walls in the process.
In most cases, it's just the buyer and their real estate agent who attend the final walk-through. The real estate agent is there to help them through the process. An agent may have a better idea of what the buyers should look for during the walk-through.
The purpose of earnest money is to provide the seller with compensation in the event that the buyer backs out of the deal through no fault of the seller and in violation of the agreements in the purchase contract. If that happens, the seller gets to keep the earnest money.
Yes. For certain types of mortgages, after you sign your mortgage closing documents, you may be able to change your mind. You have the right to cancel, also known as the right of rescission, for most non-purchase money mortgages.
Buyers can typically back out of buying a house before closing. However, once both parties have signed the purchase agreement, backing out can get complicated, especially if you want to back out and keep your earnest money deposit. Review your contract to understand the consequences of walking away.
Can a seller deny a final walk-through? No, a seller cannot legally deny a buyer the opportunity for a final walk-through before closing. This is a standard part of the home-sale process. But it couldn't hurt to include it in your contract just in case.
Granted, unless you are closing after the Register of Deeds has closed for the day, you should realistically get your keys the same day as closing day. However, it may be a couple of hours after you have signed before the Register of Deeds records the Deed giving you possession of the house.
The final walkthrough is typically completed after the seller has moved out and allows the buyer to confirm that agreed-upon repairs have been made, and that there are no new issues. Essentially, the final walkthrough allows home buyers to do one last check.
After the completion of a home, a buyer and a builder may conduct something commonly referred to as a blue tape walkthrough or inspection. This occurs after construction is completed and allows the buyer the chance to point out any problems, defects, or anything that needs additional repair before move-in day.
In certain situations, a buyer or seller can cancel an agreement to buy or sell a property after signing a purchase agreement. If there is a breach by the other party, the non-breaching party may have the right to cancel the deal or sue to make the other party perform or pay damages for not performing.
How much should an earnest money deposit be? An earnest money deposit is typically between 1% and 3% of the purchase price of the property.
Can the seller back out of the contract before closing? In some cases, yes. It all depends on how your contract reads and what contingencies are in place. If you don't have any contingencies in the contract it can be harder for you to cancel than it would be for the buyer.
Backing out without a contingency
If you don't have a contingency to protect you if that happens, you'll most likely lose your earnest money deposit and, in some cases, be subject to other penalties, however. If you back out for any reason and are not covered by a contingency, you'll most likely lose your deposit.
In competitive markets and in cases where multiple similar offers are being considered, a higher earnest money deposit can sometimes help guide the seller to the most motivated and capable buyer. By accepting an offer, a seller is committing to pulling their property off the market for a period of time.
The earnest money typically goes towards the buyer's down payment or closing costs. It is refunded to the buyer only upon certain contingencies specified in the contract. If the buyer cancels the contract outside of the contingencies, it is released to the seller.
Who attends a final walk-through? Usually just the buyer and the buyer's real estate agent attend the final walk-through. This allows the buyer to properly inspect the home without any input or pressure from the seller.
Ideally, you want the final walkthrough to be after the seller has moved out and before signing loan documents. After the seller has moved you can get a much better look at the condition of the property without all of their stuff in the way.
If you back out before a contract was signed, there are likely to be no consequences. If you already had a signed purchase agreement, though, you could potentially lose your earnest money deposit or even be sued.