How to Navigate Property Transaction During Pendency or Waiting Period by Dennis Isong

How to Navigate Property Transaction During Pendency or Waiting Period by Dennis Isong

During the real estate transaction process, properties often enter a pendency stage after an offer has been accepted but before the sale is finalized. This interim phase can be a period of uncertainty and anticipation for both buyers and sellers. To ensure a smooth transition and maintain the property's value, it's crucial to understand the responsibilities and best practices involved.?Understanding the Pendency Period

The pendency period, also known as the "under contract" or "pending" stage, commences when a buyer's offer has been accepted by the seller, and both parties have signed the purchase agreement. During this time, the property is no longer actively listed on the market, and the seller is legally bound to the agreed-upon terms, unable to entertain or accept any other offers.

However, the pendency period does not guarantee a successful sale. Various contingencies and conditions must be met before the transaction can proceed to closing. These may include:

Satisfactory home inspection

Securing financing approval

Clearing title and lien searches

Appraisal aligning with the agreed-upon purchase price

If any of these contingencies are not met or if either party chooses to terminate the contract, the deal may fall through, and the property will revert to an active listing status.

Responsibilities During the Pendency PeriodFor Buyers

As a buyer, the pendency period is a crucial time to ensure all necessary steps are taken to complete the purchase successfully. Here are some key responsibilities:

Finalizing Loan Application: Submit all required documentation and financial information to the lender to secure final loan approval.

Home Inspection: Arrange for a professional home inspection to assess the property's condition and identify any potential issues or repairs needed.

Negotiating Repairs: Review the inspection report and negotiate with the seller regarding any necessary repairs or concessions.

Final Walk-Through: Conduct a final walk-through inspection before closing to ensure the property's condition aligns with the agreed-upon terms.

Preparing for Move: Begin packing and making arrangements for the move to the new property.

For Sellers

While the pendency period may seem less demanding for sellers, there are still important responsibilities to fulfill:

Maintaining the Property: Keep the property in pristine condition, ensuring it remains clean, well-maintained, and free from any damage or neglect.

Accommodating Inspections and Appraisals: Facilitate access for the buyer's home inspection, appraisal, and any other necessary visits or assessments.

Addressing Repair Requests: Promptly address any repair requests or negotiate resolutions with the buyer if issues are identified during the inspection.

Preparing for Move-Out: Begin packing and making arrangements for your move from the property.

Maximizing Property Value During Pendency

Maintaining the property's value during the pendency period is crucial for both buyers and sellers. Here are some strategies to consider:

Curb Appeal: Enhance the property's exterior appearance by keeping lawns well-manicured, gardens tidy, and any necessary repairs or touch-ups completed.

Interior Maintenance: Ensure the interior spaces are clean, decluttered, and well-organized, creating an inviting atmosphere for potential walk-throughs or inspections.

Address Minor Repairs: Attend to any minor repairs or maintenance issues promptly to prevent them from becoming larger problems that could impact the sale.

Utility Upkeep: Keep all utilities (electricity, water, gas) active and functional to demonstrate the property's livability and facilitate inspections.

Documentation: Maintain accurate records and documentation related to the property's condition, repairs, and any improvements made during the pendency period.

Contingency Planning and Backup Offers

While both parties hope for a successful transaction, it's essential to have contingency plans in place in case the deal falls through. For sellers, this may involve considering backup offers or being prepared to relist the property promptly.

Buyers, on the other hand, should remain vigilant in their property search and be open to exploring alternative options if the current deal encounters insurmountable obstacles.

Communication and Transparency

Effective communication between all parties involved – buyers, sellers, real estate agents, lenders, and other professionals – is paramount during the pendency period. Transparency and regular updates can help mitigate misunderstandings, address concerns promptly, and facilitate a smooth transaction.

Legal and Financial Considerations

Throughout the pendency period, it's crucial to seek guidance from legal and financial professionals to navigate the complex processes involved. Real estate attorneys can review contracts, ensure compliance with local laws and regulations, and protect the interests of both parties.

Preparing for Closing Day

As the pendency period nears its end, both buyers and sellers should make necessary preparations for the closing day. This may include:

Reviewing and understanding all closing documents

Arranging for the transfer of funds or securing financing

Coordinating the final walk-through and property handover

Making arrangements for moving and transitioning to the new property

Post-Closing Considerations

Even after the closing day, there may be additional tasks or considerations to address:

Change of Ownership: Ensure the property ownership transfer is properly recorded with the appropriate authorities.

Utility Transfers: Coordinate the transfer of utility services to the new owner's name.

Property Maintenance: For buyers, establish a routine property maintenance plan to protect their investment.

Documentation Safekeeping: Securely store all relevant documents, records, and warranties related to the property.

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Dennis Isong is a TOP REALTOR IN LAGOS.He Helps Nigerians in Diaspora to Own Property In Lagos Nigeria STRESS-FREE. For Questions WhatsApp/Call 2348164741041?