A Buyer's Guide

This is information you, as a Buyer, should know and consider when making an offer to purchase. These are some helpful hints we have compiled for your information in the hope that it will help make your purchase smoother and easier. We are not attorneys and cannot give you legal advice, therefore we urge you to seek the advice of an attorney should you require legal assistance on any aspect of your purchase.

Be sure you call your O'Hara Realty agent if you see something for sale that you are interested in. We can help you with any listing, even if listed with another company. We cooperate with all agents in the area and our job is to find you the best property for your needs - regardless of who has it listed. We are "Dream Home Finders!".

When you make an offer to purchase a home you will be giving your O'Hara agent an earnest money deposit. This check is held uncashed until your offer is accepted. Then and only then your check is either deposited into the escrow company account or the O'Hara Realty Client Trust Account and IT IS CASHED. That money is then held in your name towards the purchase of your new property.

1.) If you are buying an existing home (as opposed to a newly constructed home), please note that the property will be delivered to you "in the same general condition" as it was on the date you signed the contract to purchase.

This means that the carpets will not necessarily be cleaned before close of escrow, windows may or may not be clean, walls will not be painted or repaired, any nail holes in the walls, doors, etc., will not be repaired, the oven may or may not be cleaned. The seller has to disclose to you any non-operational items such as electrical, plumbing, heating and air conditioning, sewer, appliances, etc. But they are not required to fix them unless it is stated in your offer to purchase or agreed to by the seller after a home inspection. The contract does usually provide for the inclusion in the sale of all "attached fixtures" to be included in the sales price, such as garage door openers, existing window and door screens, all built-in appliances, television antennas and motor controls, garage door openers and controls, satellite dishes and controls, burglar and smoke alarms, light fixtures all plants, shrubs and trees, pool equipment, well pump and any other items that might be written into contract, such as fireplace screen. The general rule is that if the fixture is "attached" to the property with bolts, screws on installation of some other kind, it stays unless it has been excluded on the contract, such as, "light fixture in dining room does not stay, it will be replaced with a similar fixture".

You can request ANY PART of the property be cleaned, replaced or repaired prior to close of escrow, but if so desired it MUST be included in your offer to purchase or in an addendum after you have received the property disclosure or completed your home inspection. The seller is not obligated to do anything until it is in writing as part of the contract and signed by them. You can make any request you like in your offer to purchase. Please note that your transaction will go a lot smoother if you try to include everything you expect of the seller in your original offer. With the seller informed from the beginning of the specific things you expect you will know what condition the property will be in when you move in.

2.) We strongly urge you to take advantage of a Home Warranty, a copy of which is available from your agent. There are various home warranty companies, and you are invited to compare the policies to see which one will best serve your needs. These warranties generally include coverage for the repairs of heating, plumbing, electrical, water heater, sewer and some other items (see home warranty brochure for details) for a period of one year after you close escrow. Customarily, after the home warranty is purchased, all you pay for repairs is a service call fee ($35.00 +/-). All the systems covered by the home warranty need to be in working order at close of escrow in order to be covered, which is another reason to do a thorough walk through inspection.

3.) If you are buying a residential home (or duplex, triplex or fourplex) the owner and the real estate agents involved are required by law to give you a "Transfer Disclosure Statement", also known as a "Property Disclosure". On this form, the sellers and the agents are required to disclose to you any defects in the property they are aware of or any circumstances that they are aware of that may effect the property or your use of it.

It is very important that you read this document thoroughly before signing it. You may also want to go reinspect the property, with the "Property Disclosure" in hand, and review all of the disclosed items.

If there are ANY items on the Property Disclosure that you object to or that you expect to be repaired or replaced you must inform your agent immediately. Your offer will generally provide for a certain number of days for you to object to any conditions disclosed on the Property Disclosure. When you inform your agent of your objections, your agent can let the seller know of your objections, and find out if the seller is willing to take the necessary actions to cure the conditions you object to. The seller has the choice of making or not making the repairs at this point. Should the seller be unwilling to make the repairs, you as the buyer also have the choice of whether to complete the purchase without the repairs, or canceling the contract and receiving back your deposit.

(For example, the seller discloses to you that there are 3 missing screens, chipped paint on the front door, nail holes in the living room and one electrical outlet that does not work. At the time you receive this information on the Property Disclosure, you inform your agent that you want the screens replaced and the outlet in working order. You plan to paint the living room and replace the front door after you move in, so you will accept those items in their present condition. The seller agrees to do those repairs, and all parties sign an addendum [addition] to the purchase contract adding these items.).

We also urge you to take advantage of a "Home Inspection" or "Property Inspection". This is a detailed written inspection of the entire property by a home inspector. This inspection will also disclose to you the inspectors's opinion of the condition of the property, and the inspector generally makes recommendations of needed repairs. This inspection usually costs between $250.00 and $500.00. By requesting that this inspection be put in your offer to purchase, you can ask the seller to make corrections or repairs if any adverse conditions are disclosed by the home inspector, or you can cancel your offer to purchase and receive back your deposit (less any actual costs). Please inform your agent at the time you make your offer of your desire to hire a Home Inspection Company.

4.) Keep in mind that your agent represents you and has the duty to follow your instructions and work in your best interest. If you need anything during your escrow, please do not hesitate to contact your agent immediately. We have a 24 hour answering machine that can provide you with your agent's home phone number or the broker's home phone number, should you need them after hours. If you cannot reach your agent, the Broker, Roberta Urban or the Manager, Liza Klagenberg, will also be happy to help you.

It is always better to deal with your agent regarding any questions, requests or comments, rather than dealing directly with the seller or the seller's agent. Your agent knows what your contract says and the ramifications of it. The contract is THE LEGAL BINDING AGREEMENT BETWEEN YOU AND THE SELLER. One of the rules of real estate is "if it isn't written it isn't true". This means that verbal agreements are not necessarily binding, and all agreements between you and the seller need to be reflected in your offer/purchase contract.

5.) We advise you to not make any other major purchases (appliances, new furniture, new cars, etc.) or create any further indebtedness until AFTER your escrow has closed and the property is recorded in your name. Your lender has worked out the financing that you will qualify for and any additional debts incurred during the escrow could mean you would no longer qualify for your loan, and therefore would not be able to purchase the home. Should you desire to purchase new items for your home, it should only be done AFTER the close of escrow. That way it will not interfere with your loan qualifications. Your lender generally does get an updated credit report right before your escrow closes and a new loan or debt could adversely effect your loan. The best idea is to shop for what you need or want during the escrow period, but do not actually purchase or contract for the purchase of the item until your escrow closes.

6.) Please keep your agent informed as to where you can be reached during the escrow period. If you need to go out of town, let your agent know where you will be. If you can not be reached, check in with your agent frequently so that we can keep you informed as to how your escrow is progressing and if we need any information from you. You can always leave a message at our office as to your whereabouts should you be unable to reach your agent directly.

7.) You will need to contact your insurance agent after the purchase contract has been signed. You might want to inquire as to various kinds of coverage for your new home, such as liability, fire, theft, etc. Your new loan company will have their own requirements of coverage, and your insurance agent can coordinate with the escrow officer to insure that you meet the lenders insurance requirements. However, lender insurance requirements are for their protection and may not meet all your needs. Your insurance agent can best advise you as to the proper coverage for your new home.

8.) You will need to arrange to have the homes utilities transferred into your name. We can give you a list of local utilities to call. The City of Galt requires that you go into City Hall in person to transfer city water service. They generally want some evidence of ownership of the new home, such as a copy of your closing papers. Also, if you need to add a phone line to the new home, contact the phone company early during the escrow period to find out their requirements and the availability of new lines in your area. With the addition of so many fax and modem lines in residential areas, there can sometimes be a waiting period.

9.) When the escrow is ready to close, your agent will contact you to make an appointment to sign your final closing papers. You will need to bring in a cashiers check for the amount of money that your agent tells you is needed to close the escrow. This will consist of your "down payment" and "closing costs". Usually you go to the title company and sign your papers with the escrow officer or their assistant. You will need a valid photo ID at signing. Your appointment to sign all of the escrow and loan papers can take between 1 - 2 hours, so plan accordingly. There are many documents to read and your agent will attend the signing with you if it all possible in order to answer any questions you might have. The escrow officer can also explain some of the more complicated forms lenders use these days. Feel free to ask questions during the signing to ensure you understand the documents.

10.) After all parties have signed the papers, all contract terms have been met and your lender has released your loan funds, the deed to your new home is ready to be recorded in your name at the county recorders officer. Once that deed's recording is "confirmed" to have happened, your escrow is "closed" and the property is now yours! You will be informed of the recording and closing by your agent or escrow officer and we arrange to get the keys to your new home. You will be able to move in according to the agreement for possession that was in your purchase contract. Some contracts have the buyer taking possession "on the close of escrow", which means you can move in that day. Other contracts provide for time for the seller to move out, such as "2 days after close of escrow." Be sure you talk to your agent when you write the offer and throughout the escrow as to your moving plans and dates. Not all escrows close on time - though we work as hard as we can to get them done! Sometimes there are delays from your loan company that we cannot control, or delays in getting repairs done, appraisals done, loans funded on time, etc. It is important to stay in touch with your agent and stay informed as to how the process is going and if there have been delays that may change your move in date.

11.) Above all else, please let us know how we can help you. We want your purchase to be as smooth as possible and to ensure that our service to you is the best available. All of our agents, as well as Roberta Urban, the Broker/Owner of O'Hara Realty, are always available to you, to answer questions or assist you in any way. Please don't hesitate to inform us as to what you need and how we can be of service.

We pride ourselves on being the longest established real estate company in Galt, and we are dedicated to continuing to provide the best quality service to our friends and neighbors. Our goal is to provide superior, professional service so that you will continue to come back to O'Hara Realty for all your future real estate needs and let your friends know that we are happy to assist them too.