Navigating Your Path to Homeownership

Your Guide to the Contract Timeline

Buying or selling a home is exciting but it can also be complex and overwhelming, like solving a puzzle with many pieces. And, like the picture on a puzzle box, there is a guide to help you fit those pieces all together; it is the contract timeline. Let's dive into this timeline and see how it all works!

Acceptance and Entering Escrow is a formal commitment when both the buyer and seller agree on the contract terms, it's a high-five moment. This is called "mutual acceptance." It means both sides are committed to the deal. Both parties sign all parts of the contract and the Buyer deposits their Earnest Money at the Escrow office. Now, the process moves to a special phase called "escrow" when your Realtor and team works to make sure everything goes as planned.

The Due Diligence Period is for uncovering property details. Think of this as a treasure hunt for information about the house. A home inspection is like a checkup for the house. If there are any problems, you might need to talk about fixing them or changing the deal. The Seller’s Real Property Disclosure and any HOA or other documents that pertain to the property must be provided to the Buyer to review. The title search is like checking a history book for the house. It makes sure there are no hidden ownership problems.

Financing and Appraisals are for securing the funds to purchase. When you don’t have or want to use cash to purchase a property you have the option of financing. First the buyer has to be approved and then the property needs to be. An appraisal is usually required by the lender to make sure the house’s price is fair. The lender wants to make sure the house is really worth what the buyer has offered. Loan approval is granted when the lender is satisfied that the buyer will pay back the loan and that the deal is sound.

Finalizing the details and preparing for closing. As you approach closing all the final details of the transaction must be completed. Any agreed to repairs must be complete, possessions must be moved out and the property cleaned all before the final walk through. At this time you will also be provided with closing documents to review. This is the final dash to the finish line.

Signing Day is the culmination of the contract timeline—ALMOST. Signing the documents is the last thing you will do before the sale closes. The Seller signs over the deed and the Buyer signs their loan documents and deed documents. But in Hawaii you don’t get the keys yet. Here you must wait until 2 days after the funds have cleared the escrow company’s account. This is when the Bureau of Conveyances will officially transfer title and you can celebrate! You've become a homeowner or successfully sold your property.

The contract timeline can be tricky, but with some help from your trusted real estate agent, it's like assembling a puzzle. By learning about each step, being ready for surprises, and getting help from pros, you will be able to navigate the path to a successful closing.

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This information is provided by Dani Dooley for educational purposes only and may not be used as legal, business, or financial advice. Seek professional advise about your individual situation. Dani Dooley is a nationally recognized top producing Realtor in Kauai, Hawaii.  Follow @DaniDooley.Kauai.Realtor