J. Graham Realty, LLC

Licensed Real Estate Agency In NJ & Florida

When the attorney review period is over, the house is now under contract. Below is an outline as to what happens next:

Under Contract

​​​​J. GRAHAM REALTY, LLC

INSPECTION CONTINGENCY PERIOD:        

  • Buyer immediately orders inspections and tests (home, Radon, termite, oil tank search, septic (not required if house has city sewer) when out of attorney review. Below are some of the estimated costs:​
    1. ​General Home Inspection (Est. $600 - $850)​
    2. Radon Test​ (Est. $200 - $250)
    3. Oil Tank Search (Est. $225 - $300)
    4. Termite/Pest Inspection (Est $225 - $300)​​

                   *Please note that these are just estimates and the costs can vary due to the many issues that may arise in the buying process.

  • Typically you have up to 10-14 days starting from the time you have completed attorney review to order the inspections and/or tests; receive the report(s); and get back to the seller with any requested credits or repairs.  
  • The earlier the reports come in, the faster the buyer and their agent can determine what credits and/or repairs to ask for from the seller.  Buyer should attend the inspection(s) and MUST bring a copy of the signed contract to the inspection. This is the buyer’s opportunity to ask questions about the infrastructure of the house, as well as, to learn about the operation and location of the gas and water shut off valves and electric breaker box,etc.
  • The buyer receives the inspection reports and tests, which will indicate if a specific item will need to be further inspected or repaired. The Buyer may need to reach out to a vendor to further inspect / provide written estimate for repair(s).
  • Buyer determines the price credits and/or repairs to ask for and then contacts their Attorney with their requests. By asking for a price credit, buyer can control the quality of repairs if hire their own contractor.
  • The requests should be provided to the seller's attorney as soon as possible so that you ensure that you comply with contractual inspection contingency provisions. Either the seller accept the demands, offers a credit, counters, or refuses to do any of the repairs.  
  • If both sides come to terms and the seller agrees to fix some items, the seller will schedule the vendor to do the repairs.
  • Upon completion of any repair work done by the seller, the buyer should ensure that the Seller provides paperwork or proof repairs made by qualified, licensed professionals.
  • In order to verify the repair work was completed, the buyers agent will setup a walk through of the property 4 days prior to the closing date.



MORTGAGE CONTINGENCY PERIOD:

  • Begins immediately after attorney review period is completed and can last up to 45 days.
  • Buyer needs to apply for a loan within immediately after attorney review period has been completed.
  • Buyer calls lender to make sure that they have ordered the appraisal.​ The appraiser will call the Buyer or Buyer's agent to setup the date and time for the appraiser to come down to the house. 
  • When meeting with the appraiser, make sure appraiser has copy of the sales contract to verify what is and is not being sold.
  • The appraiser will then send the appraisal to the bank and from that point on, the bank will process the mortgage for approval. If approved, the closing date is scheduled.

4 Perry Street
Morristown, NJ 07960
(o) 973.540.1232
(f) 973.540.0008