A signed contract between the seller and prospective buyer is far from the end of the deal.
There are many steps involved in buying a house, each varying depending on the type of transaction and municipal regulations.
Once a lease or purchase agreement is in place, it’s very common to have a series of conditions, homework, and due diligence tasks that need to be completed to move the deal to closing.
For this work, it’s a regular practice to hire a group of trained and certified professionals to conduct inspections, review documents and prepare reports and deliver them to the other party.
Who Are the Parties Involved in a Real Estate Transaction?
Whether buying or selling a home or commercial space, it takes a village to pull off a real estate transaction successfully.
Some of the most common parties involved include:
- Real estate broker
- Real estate agent
- Buyer and seller
- Home inspector
- Mortgage Lender
- Title company or lawyer
When you’re dealing with more than five parties, it can be hard to keep up with everyone. Luckily, your two best resources to help you understand these parties and their responsibilities are already on the list.
Time Management is Crucial
All parties need to remember that they are ultimately responsible for the performance of their team. The challenge, however, is getting these people to understand and adhere to the critical timelines agreed to by the buyer and seller or tenant and landlord.
Bankers, inspectors, lawyers, environmental engineers, mortgage brokers, accountants, insurance brokers, and the like all need to be advised of the established timelines written in your agreement. They must get a copy of the Condition Schedule when you hire them.
If a key date comes up and there are still items left uncompleted, then a milestone is unlikely to be met, resulting in significant delays or having the deal completely fall through.
Stay On Top of Closing Deadlines
Deadlines make clear what we’re expected to deliver and when.
It’s imperative that your team is available to work on your project in a timely manner. To avoid becoming culpable for default, highlight the critical deadlines mentioned in your agreement and ask them to commit to getting things done on time.
Default can render your contract null and void and can also put you in a position of financial or legal liability. Don’t let this happen.
Avoid Asking for Extensions
Asking for extensions from the other party, or having to inform them that your due diligence isn’t complete on schedule because one of your contractors is tardy is a risky move that could jeopardize your transaction.
It reduces the likelihood of the deal closing and often makes the other party second guess whether working with you is the right decision or a waste of time. Unless agreed to within the body of your agreement, nobody is obligated to grant you an extension.
Failure to meet deadlines can open the opportunity of terminating the agreement.
Make Yourself a Priority
Sometimes, the other party may think that different opportunities with more credible interlocutors are better pursued.
Keep in mind that hired service providers are likely to be working on multiple projects with multiple clients rendering your order on their priority list low.
Try to form a relationship with those who provide prompt and timely service and if they are dragging their tail, cutting it too close to the condition dates, re-evaluate. They aren’t helping you and may actually be putting you in jeopardy.
Your Next Investment is Right Around the Corner
The entire transaction process can be overwhelming and frustrating for everyone involved, as there are several deadlines and countless tasks to be accomplished.
Whether you’re looking for tenant leasing services, your next property investment, or space for your business, we’re here to help. Save yourself time, money, and stress by leaving all the heavy lifting to the pros.
Reach out to us today to learn more about our wide range of Ottawa real estate services.