Best Practices and Key Considerations
By Dwain Ammons, Realtor, Allen Tate/Beverly-Hanks
Selling your home or land in North Carolina is an exciting journey that culminates at the closing table. However, the time leading up to the closing is critical for ensuring a smooth transaction. As a Realtor with years of experience guiding sellers across western North Carolina, I understand the importance of proper preparation and execution. Here’s a comprehensive guide on pre-closing responsibilities and best practices to help sellers navigate this crucial phase.
1. Understand the Purchase Agreement
The purchase agreement sets the terms and deadlines for the sale. Sellers should review it carefully to ensure they fully understand their obligations, including any agreed-upon repairs, financial credits, or disclosures.
Key Considerations:
- Deadlines: Keep track of all deadlines, such as inspection resolution dates, repair completion timelines, and final walkthrough scheduling.
- Contingencies: Be aware of buyer contingencies, such as financing, appraisal, or inspections.
2. Prepare the Property for Inspections
Buyers often schedule inspections soon after the contract is signed. As the seller, it’s your responsibility to make the property accessible and inspection-ready.
Best Practices:
- Ensure all utilities are turned on for inspections.
- Clear access to critical areas, such as the attic, basement, HVAC system, and water heater.
- Address minor maintenance issues (e.g., replacing lightbulbs, fixing leaks) to minimize potential buyer concerns.
3. Negotiate and Complete Repairs
If the buyer’s inspection report reveals issues, negotiations may follow. Sellers often agree to repair items or provide financial concessions.
Key Tips:
- Hire licensed professionals for major repairs and keep receipts for proof of completion.
- Communicate with your Realtor to determine which repair requests are reasonable and which may require negotiation.
4. Fulfill Disclosure Obligations
North Carolina law requires sellers to provide a Residential Property and Owners’ Association Disclosure Statement. Be truthful and transparent when completing this form to avoid potential legal issues.
Important Note:
- If you discover a material defect after signing the disclosure, inform your Realtor and the buyer immediately.
5. Coordinate with the Closing Attorney
In North Carolina, a closing attorney facilitates the transaction. Sellers should work closely with the attorney to ensure all documents and payments are in order.
Seller Responsibilities:
- Provide the deed or work with the attorney to prepare it.
- Resolve any outstanding liens or title issues.
- Ensure the property is free of encumbrances, such as unpaid HOA dues or property taxes.
6. Pack and Clean the Property
The home or land should be left in a condition that matches the buyer’s expectations per the contract.
Best Practices:
- Vacant Properties: Ensure the home is clean and free of debris.
- Occupied Properties: Coordinate your move-out timeline with the buyer’s move-in schedule.
Pro Tip: Hire a professional cleaning service for a final deep clean. This leaves a positive impression on the buyers.
7. Utilities and Service Transfers
Arrange for utilities to be disconnected or transferred to the new owner as of the closing date.
Steps to Follow:
- Contact utility companies well in advance.
- Provide final meter readings, if necessary.
- Cancel or transfer service contracts for pest control, landscaping, or other recurring services.
8. Final Walkthrough Preparation
Buyers typically conduct a final walkthrough shortly before closing to confirm the property’s condition.
Ensure:
- Agreed-upon repairs are completed.
- No new damages have occurred since the inspection.
- Appliances and fixtures included in the sale are still in place and functional.
9. Prepare Financially for Closing Costs
While buyers usually bear the bulk of closing costs, sellers have their own financial responsibilities.
Seller Costs May Include:
- Agent commissions.
- Attorney fees.
- Prorated property taxes.
- HOA fees (if applicable).
Pro Tip: Your Realtor and closing attorney will provide an itemized list of your estimated closing costs so there are no surprises.
10. Plan for a Smooth Handoff
Before handing over the keys, ensure that everything is in place for a seamless transition for the buyer.
Checklist for Sellers:
- Leave manuals for appliances and systems.
- Provide garage door openers, spare keys, and any access codes.
- Offer a list of local service providers for landscaping, utilities, or maintenance.
11. Stay in Communication
Maintain open communication with your Realtor, closing attorney, and the buyer’s agent. Quick responses to any last-minute questions or requests can prevent delays.
Final Thoughts
Selling a property involves many moving parts, but with careful planning and attention to detail, the process can be seamless. By partnering with a knowledgeable Realtor and adhering to these best practices, sellers can confidently approach the closing table, knowing they’ve fulfilled their responsibilities.
If you’re preparing to sell your home or land in western North Carolina, I’d be honored to assist you. From the initial consultation to closing day, my goal is to provide unparalleled support and expertise.
Contact Dwain Ammons
For personalized advice or assistance, reach out to me at Allen Tate/Beverly-Hanks. Let’s make your sale a success!
Contact form for Dwain Ammons, Allen Tate NC sellers listing agent or call (828) 447-0036.
Below are typical Seller Pre-Closing Responsibilities in North Carolina
The seller’s pre-closing responsibilities are typically either outlined in the sales contract, or, in the absence of specific, written clarification, are based on common custom. In North Carolina, Standard Form 2-T, the Offer to Purchase and Contract, is usually used for residential real estate sale transactions. Within the form, the buyer’s obligations are primarily focused on the costs associated with certain aspects of closing (as you would expect in a purchase), while the seller’s obligations are a bit more complex.
Obligations Under Standard Form 2-TStandard Form 2-T lists the following as seller obligations: Cooperate with the closing attorney to provide relevant closing documentation, such as:
Any title information to which the seller has access
A non-foreign status affidavit (pursuant to the Foreign Investment in Real Property Tax Act) when applicable
Loan payoff information, including the appointment of a lien agent if necessary
Affidavits and indemnification statements from any parties who may be entitled to claim a lien against the property proving they’ve been paid and indemnifying the buyer from any related losses
Cooperate with the title company to clear up any title deficiencies in order to provide a general warranty deed that’s free of liens, encumbrances, or defects.
Make any negotiated repairs or improvements.
Provide access to the property for the buyer to perform any necessary due diligence, verify the completion of any negotiated repairs, and conduct a final walk-through.
Remove all of the seller’s personal property and debris from the premises before the buyer takes possession.
Pay the following: Costs associated with preparation of the deed and any other documentation necessary to complete any other obligations, as well as the excise fees associated with the transfer of title
HOA/POA fees associated with the preparation for the sale or transfer of title
Confirmed special tax assessments that are levied against the property prior to settlement, if the amount can be reasonably estimated (even though they’re due in the future, if the assessment has been confirmed, the seller owes)
Late listing penalties for property taxes, if applicable
Any other buyer fees or costs that have been negotiated for the seller to pay
Other Typical Seller Obligations As if Standard Form 2-T isn’t thorough enough, a few more obligations that are customarily assigned to the seller (with the help of the seller’s agent), including that the seller must:
Maintain the property in good condition.
Verify that buyer financing is in order (or proof of funds if paying cash).
Retain an attorney as necessary.
Review the Closing Disclosure (before closing) and the settlement statement (at closing).
Bring identification to closing.
Review and sign finalized closing documents.
Additionally, when the property is being rented or leased to tenants, the sellers must prepare the assignment of any outstanding leases to be switched from the seller to the buyer.
Typically, the seller provides all the leases to the closing attorney, and the closing attorney prepares the actual documents that assign the leases to the buyer, along with the rights to future rents. Even with the closing attorney’s involvement, it’s the seller’s responsibility to ensure that the leases are assigned to the buyer.
Basic information about the property-like a tenant list, rent statutes, etc.-should be provided to the buyer, and security deposits should be handled in accordance with the Tenant Security Deposit Act-meaning they’ll either be transferred to the new owner and the tenants will be notified, or they’ll be returned to the tenants and the new owner will collect new ones.
Contact form for Dwain Ammons, Allen Tate NC sellers listing agent or call (828) 447-0036.