Real Estate terms EVERYONE should know! (PT 2)

We do our best to put ourselves in our customers shoes. If we were buying or selling (especially for the first time!) what would we want to know? What terms do the agents use and why do they use them? Well, look no further. Like one of our favorite cartoons from the ’80s said, “now you know and knowing is half the battle.!”

We really hope the information below will make you more informed when buying or selling a property. These next terms relate directly to the Wisconsin Offer to Purchase. Please remember, if you have questions, it is REALLY important to talk to your real estate agent. We are trained to assist you! Shoot us an email at info@homebrosrealty.com or just drop a comment below!

• Contingent
  • Contingency is part of a written Offer to Purchase and is a set of specific requirements that must be met prior to the closing of a property. Contingency in a real estate Offer to Purchase may be, but not limited to, items like financing, sale of buyer’s current property, inspections, appraisals or closing dates.
• Binding
  • While this term is only present on the document along acceptance, binding is a very important term in real estate in the state of Wisconsin. Both the buyer AND seller need to be aware of what this means. In the Offer to Purchase all terms, conditions, contingencies, and included items are only binding to both parties if those items are in writing, signed and dated. This means verbal agreements do nothing. To be safe, if you have a need, make sure it is in writing. I
• Acceptance
  • The offer to purchase has been delivered from the buyer agent to the seller agent and the selling party. Acceptance occurs when the selling party signs the Offer to Purchase. Acceptance is the timeframe between sellers signing the Offer to Purchase and the selling agent delivering the signed documents to the buyer’s agent. This timeframe is the last opportunity the buyers have to simply walk away from an offer with no “strings attached.”
• Binding Acceptance
  • The buyer’s offer has been accepted by the selling party and the signed and dated offer to purchase has been delivered to the buying party or their representative. The important difference between Acceptance and Binding Acceptance means that as a buyer, you are now compelled to do everything you can to complete the purchase as agreed.
• Time is of the Essence
  • Time is of the Essence means that all parties involved have a responsability to each other to quickly and efficiently meet the expectations listed within the Offer to Purchase. This includes earnest money payments after binding acceptance, deadlines and contingencies, dates and changes.
• Closing
  • Closing is the term used to describe the date when both the selling party and the buying party will sign all documents and ownership of the property is transferred from seller to buyer. This date is determined on the Offer to Purchase and is subject to agreement by both parties. Location of closing is determined by the selling party unless requested in writing by the buying party.

Thanks for checking out our post! The important thing to know is that your Realtor should ALWAYS have your back. Please ask us or your Realtor about the terms above and how they are important to you and your property! Check back soon for Part 3 of Real Estate terms EVERYONE Should Know!