This is the 2023 checklist on what you need to do if you listed a house and receive a ratified contract.
After Contract Ratification Checklist – (Listing side)
A ratified contract is when the Buyer and Seller have both signed and initialed where required. Now your checklist:
1) Does the seller need to buy now? See if you can be their buyer agent also.
2) Copy of contracts, lender letter and EMD: Save on your computer.
3) Share the ratified contracts: All parties should receive a copy of the ratified contracts, addendums, copy of EMD and lender letter. List side, buy side, mortgage, and settlement companies and of course your Broker using case processing sheet found at www.nat22.com,
4) Status changes along the way:
- a) Active / Under Contract: Probably contingent on home inspection or similar.
- b) Pending: Only contingent on financing.
5) If you have a post sign, change sign rider to “Under Contract”. Upon all contingencies being removed change to Sold. Schedule the post sign to be removed prior to settlement date.
6) Leave the lock box on the door for home inspectors or appraisers to use with appointments. At walk thru the day before settlement the buyer and buyer agent will use it to see if the house is empty and broom swept. Have them keep the key and after settlement, take the lock box off the door.
7) If Condo or HOA documents should be ordered at time of listing. (They take a long time to get.) Once received, email them to the buyer agent. The buyer has 3 days to examine the HOA rules and for any reason can void the contract. If 3 days comes and goes after they receive them, this cancellation potential is gone.
8) Confirm with other agent earnest money check deposited and confirm buyer is scheduled to make formal loan application.
9) If Well / Septic house, tell seller to order inspections.
10) If Home inspection. The buyer agent should schedule with the listing agent the time and date. Listing agent should advise seller to not be home at that time. Buyer agent will use lockbox to get in.
11)Upon Home Inspection completion. Buyer agent will provide a Removal of Home Inspection addendum, “contingent on seller repairing / replacing the following items.” Hopefully nothing or a short list. Sign bottom or counteroffer by crossing thru and initial to side of items crossed out and sign bottom. Change status.
12) Pest Inspection: This is optional for conventional loans but required for VA or FHA loans. The contract specifies seller or buyer to pay for the inspection. If a repair is needed the seller has to pay for it. The Pest company will send a paid receipt to settlement company to be handled at settlement.
13)Buyer Loan application: Check occasionally with other agent how the loan is going. If concerned get lender’s number and inquire personally.
14)Settlement date: Arrange with all parties a place, date and time. Seller may choose their own settlement company to handle the seller’s side if desired or the buyer chooses the settlement company.
15)Home Warranty: If its Americas Preferred Home Warranty contact Phil Lyles / phyles@aphw.com or call him at 571-283-9066.
16)Utilities: Seller to advise utility companies they are selling and on date of settlement they would like to transfer them to the new buyer. Tell them buyer will call with their info, then inform buyer agent to do so. Utilities effective transfer date will be settlement date. Transferred. Not disconnected. Nice to provide Listing agent with utility companies and phone numbers to pass on to buyer’s agent so the buyer can put in their name.
17)Homeowners Insurance: Alert current Homeowners insurance company your day of settlement, so billing can be terminated. Also let Settlement company know this is done because they will calculate the pro-rata due.
18)Settlement: Tell sellers to bring ID and blank check in case of small overage. Agent attending settlement is traditional, but not required. Bring closing gift, like a bottle of wine or champagne. Tell your sellers you appreciate referrals.
19) Update MLS status: Update status in MLS to avoid the $100 fine.
Change listing to closed either day of settlement or next day.
20) Signpost / Lockbox: Remember to remove both before buyer occupies.
21) One week after Settlement: Call or email client to see if all is ok. (an excuse to again ask for referrals)
22) Add to your Sphere of Influence: If seller staying local, keep continual contact using free emails of interesting information about Real Estate. (Find short, good news on Internet and email it). It’s a great excuse to remind them that you’re a Realtor and appreciate referrals.