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Typical Oklahoma
Transaction Process
Once the Buyer has decided on
the property to purchase, the Selling Broker types a "Contract for Sale" to
present a written offer to the Seller. The Buyer provides an earnest money
check to accompany the offer to show Buyer’s "Good faith" in finalizing the
offer. The offered price, closing date, contingencies (such as financing)
and any personal property will be included in the "Contract for Sale". The
“Contract for Sale” is just an offer at this point.
The offer will be submitted
to the Seller, who may counter, reject or accept the offer; only when the
Seller agrees and signs the offered “Contract for Sale” and it is returned
to the Buyer, will it become a binding contract. If the offer is countered
by the Seller, the Buyer will have the opportunity to accept, reject or
counter the Seller’s counter offer. The process continues until accepted or
rejected by the Seller and the Buyer. Only when the Seller accepts the final
offer will the Buyer’s earnest money be deposited into a trust account of
the Listing Broker.
Once the "Contract for Sale"
has been fully executed and earnest money deposited, instructions will be
given to the closing agent who will proceed with the activities necessary
for the closing. Buyers will need to immediately apply for a loan, if
desired, and arrange for their funds to be available. The Seller, at
Seller’s expense will bring the abstract to date (history of the legal
documents on the property that are recorded at the court house then adds any
documents since the last title transfer). The Buyer's attorney will then
prepare a title opinion of the abstract. Any requirements necessary to clear
the title must be remedied by the Seller.
Once clear title has been
determined, appraisals, surveys, inspections, etc. are coordinated through
the closing agent on behalf of the Buyer who is responsible for the costs of
the services performed in the event the closing does not happen, unless
specified differently in the “Contract for Sale”. The “Closing Date” can
then be set, which may be earlier or later than the date in the contract, if
both Buyer and Seller agree. Generally four to six weeks are required before
a “Closing Date” can be set, sooner for a cash transaction.
At the "Closing", the Buyer
and Seller will meet to sign the final papers and transfer title via the
deed. The Buyer and Seller will be shown a "Settlement Statement" which will
have all of the expenses allocated to either the Buyer or the Seller as
referenced in the “Contract for Sale” or mutually agreed. The deed will be
signed by the Seller, along with any required releases and the Buyer will
sign any loan documents and any required releases. Funds will be exchanged
and the sale will be “Closed”. The deed is filed at the County Court House
proving that you own the property, and the copy of the deed is placed in the
abstract, for future reference.
Things to Remember
The offer must be in writing
in the form of a “Contract for Sale” accompanied by earnest money.
The Seller doesn't have to
accept the Buyer’s offer or any offer.
The Seller will consider all
offers, no matter which is first. The Listing Broker must tell the Seller of
potential other offers, and then the Seller must decide whether to wait or
not.
The Seller is not required to
select the highest offer, and will consider all terms and contingencies.
If the Buyer fails to close
(once the contract is executed) at no fault of Seller, Buyer will lose the
earnest money if there is no contingency to the contrary and after all the
proper releases are signed. Furthermore, Buyer will be responsible for any
expenses incurred on Buyer’s behalf, in addition to the earnest money. If
the earnest money can legally be returned to the Buyer, the expenses could
then be taken from that returned earnest money amount. Seller must pay for
the cost of updating the abstract, but it might be used on a future
transaction, depending on the timing.
If the Seller fails to close
(once the contract is executed) at no fault of Buyer, the earnest money will
be returned to the Buyer upon mutual execution of proper releases. Buyer may
have sufficient grounds to force the Seller to sell by a legal practice
called “Specific Performance”, but this is rarely used. Seller will be
responsible for any expenses incurred on Seller’s behalf and , Buyer will be
responsible for any expenses incurred on Buyer’s behalf. |
