In this scenario, a buyer has found a seller or a seller has found a buyer without the assistance or participation of a real estate agent. In these instances, the buyer and seller agree on general terms for purchase. Our office drafts a real estate sale contract that reflects the terms agreed to between the buyer and the seller. Once the terms of the real estate contract are agreed to, the real estate contract is sent to the buyer and seller via dot-loop and signed electronically. This avoids the necessity of a home or office visit to execute the real estate sale contract. Once the real estate sale contract is signed by all parties it is submitted to the title company along with an earnest money payment. The title company then begins preparing title work in anticipation of issuing a title policy at closing that ensures marketable title. The buyer then conducts inspections, the bank conducts an appraisal, and at some point (normally 45 days unless a cash sale) the buyer appears for closing at the title company. The title company drafts a “settlement statement” that shows all credits and debits to both the buyer and seller and the settlement statement is signed by the buyer and the seller. The buyer, or banker for the buyer then “funds” the sale and buyer takes title. The seller signs a deed deeding the property to the buyer, signs the settlement statement and other closing documents, and receives funds. Keys are handed over to the buyer, and the sale transaction is then concluded. All fees paid to FSBO Midwest for services rendered are paid through the title company out of settlement proceeds.
BANK IS INVOLVED WHICH REQUIRES AN APPRAISAL AND A MINIMUM CREDIT SCORE. INSPECTIONS ARE CONDUCTED BUT NOT REQUIRED. A TITLE COMPANY IS INVOLVED. THE TITLE COMPANY ISSUES A SETTLEMENT STATEMENT AND TITLE POLICY. A CHANGE OF OWNERSHIP OCCURS AT CLOSING, AND A CLOSING OCCURS 45 DAYS FROM SIGNING THE REAL ESTATE SALE CONTRACT IN CASES WHERE THE BUYER IS BORROWING MONEY. IF THE SALE IS A CASH TRANSACTION THE TITLE COMPANY NEEDS 2 WEEKS TO PREPARE ALL THE TITLE WORK AFTER WHICH THE CLOSING CAN OCCUR. TYPICALLY, THE DOWN PAYMENT IS SMALLER THAN IF THE SALE WAS BEING OWNER FINANCED.