Three steps to home purchase in Connecticut

Typical home purchase procedure.

Step 1

In negotiating the purchase of your new home, the initial step will be to instruct the Real Estate agent to make an Offer to Purchase. This offer in writing accompanied by a deposit check (1% of the purchase price) will show “good faith” and will be deposited in the company’s escrow account within 24 hours of acceptance of the offer. The offer should include:

  • The amount you are willing to pay
  • Closing and occupancy dates
  • Any contingencies, including obtaining of mortgage, building and pest inspections/li>
  • Any personal property specifically included or excluded

As soon as both buyer and seller agree on a price and basic terms, the binder is signed by the seller. The 1% deposit check is held in escrow.

Step 2

When a buyer and seller agree on terms:

  • The buyer immediately applies or makes necessary arrangements for financing, arranges for building, pest, septic, well or any other agreed-upon inspections
  • The seller arranges with his/her attorney for the drawing of the Contract of Sale, based on the agreed terms
  • Buyer retains counsel as well

In Connecticut, the banks will generally only release funds to an attorney. It is customary to be represented by counsel.

Step 3

The Contract of Sale should include, among other things, the following:

  • Purchase Price
  • Mortgage Contingency, if any
  • Quality of Title to be conveyed
  • Date of possession
  • Itemized list of personal property included in sale
  • Satisfactory building and pest inspections (if desired)

The Contract should be prepared by the seller’s attorney and forwarded to buyer’s attorney. At contract signing by both parties, the remaining 9% of the agreed sales price is due by buyer to seller’s attorney, to be held in escrow until closing. It is local custom to release the 1% deposit check to the seller’s attorney’s escrow upon signing of contracts. By mutual agreement between buyer and seller, the 10% escrow may sometimes be released to seller after all contingencies have been met.

Westport Beach & Country Homes

William Raveis Real EstateWilliam Raveis Real Estate | 47 Riverside Avenue, Westport, CT 06880

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