Page 29 - WCA September Ketch Pen 2020

Offer – When the perfect property comes along, the next step is to write an offer. The offer outlines purchase price, earnest money, closing date, financ- ing, well and septic inspections, home inspection, and other potential property specific terms. Timelines are outlined in the purchase and sale agreement, and I urge buyers to read the document thoroughly.
Property at Squalicum Lake
This is a good time to review the Seller’s Disclosure Form which alerts to any current or past defects, and disclose any wetlands, or contamination that is possi- ble on properties used for agriculture. Some properties may be in a tax classification that offers reduced taxes, but requires annual participation, and carries penal- ties if the standards are not met. Continuation of such programs must be agreed on. The offer is presented
to the seller’s agent, and there may be some back and forth on the terms of the purchase. Response times on offers can greatly vary, so try not to speculate on what
the other party is thinking.
Once everyone agrees, signified by all parties sign- ing all documents and initialing any changes, mutual acceptance is reached. From the date of mutual accep- tance, the clock for timelines outlined in the contract begins. The Realtor has the responsibility for keeping the transaction on track, but I encourage buyers to ask for those deadline dates to be clearly defined, as it is crucial that they’re met in order to protect the buyer’s earnest money.
Earnest Money – The next step is to deposit ear- nest money. In Washington State, and many others,
it’s common practice for the title company to hold the earnest money, though it’s not uncommon for the real estate firm to have a trust account where the earnest money is held. Earnest money is money held in trust, and in the event of default on the contract by the buy- er, that money may be retained by the seller to help off- set any damages. If the contract is executed, the earnest money is applied to the transaction as buyer credit.
Tune in next month for the continuation of what to expect when buying a farm property!
Ketch Pen www.washingtoncattlemen.org
29
September 2020