Checklist · Real Estate

Buying or Selling a Home from Offer to Closing: A Practical Checklist

42 U.S.C. § 4852

Type
Checklist
Jurisdiction
National
Date
2024-07-26
Topic
Real Estate

This checklist runs a residential purchase or sale in the order the work actually happens, day by day. It opens with the deadline extraction that should occur the hour the contract is signed, because every right in the transaction expires on a date. It then covers earnest money, the inspection sequence including the specialized inspections most buyers skip, the objection that actually gets resolved, the appraisal, and the financing rules that keep an approved loan approved. It covers title and survey with a specific instruction to read Schedule B-II line by line. It covers the federal disclosure documents and the line-by-line comparison that produces refunds. It closes with the walk-through, the closing table, wire fraud prevention, recording confirmation, and the first thirty days of ownership. A parallel seller track is included.

Buying or Selling a Home from Offer to Closing: A Practical Checklist

Real Estate > Buying and Selling a Home | Published 26 July 2024 - Updated 14 November 2024 | UpLaw - uplaw.us

⚠ Contract forms, disclosure duties, and closing practice are state and county law. Verify every deadline against your own contract.

Hour one — extract the calendar

⭐ Do this before anything else. Every right in this transaction expires on a date.

☐ Read the contract once, straight through. ☐ Build a table: milestone, date, what happens if missed. ☐ Enter every date in a shared calendar with a three-day advance reminder. ☐ Note whether the contract counts calendar or business days, and how it treats weekends and holidays. ☐ Note whether "time is of the essence." ⚠ Where it is, a missed date is a breach. ☐ Identify the three ways out — inspection, appraisal, financing — and their expiration dates. ☐ Identify who holds the earnest money and how it is released. ☐ Identify the closing date and who conducts the closing.

Milestone My date
Earnest money due
Seller disclosures due
Inspection completed
Inspection objection
Repair resolution
Loan application
Appraisal
Appraisal objection
Title commitment delivered
Title objection
Loan approval / financing contingency
Closing Disclosure received
Walk-through
Closing

Days 1–3 — open

☐ Deliver earnest money and get written confirmation from escrow. ☐ Confirm the escrow holder's identity and contact information — ⚠ from the contract, not from an email. ☐ Submit the full loan application, not a preapproval refresh. ☐ Request Loan Estimates from three lenders on the same day. ☐ Schedule the general inspection immediately — good inspectors book out. ☐ Schedule the specialized inspections at the same time. ☐ Request the seller disclosures if not yet delivered. ☐ For pre-1978 housing, confirm you received the lead-based paint disclosure, any records and reports, and the pamphlet — 42 U.S.C. § 4852d; 24 C.F.R. part 35; 40 C.F.R. part 745. ⭐ You have a 10-day opportunity to inspect for lead. Use it or knowingly waive it. ☐ Request the HOA documents — declaration, bylaws, rules, budget, reserves, minutes, and any pending litigation or special assessment. ☐ Request the flood determination and, where applicable, the elevation certificate — 42 U.S.C. § 4012a. ☐ Start shopping homeowner's insurance. ⚠ A property with a claims history can be hard to insure, and that can kill the loan.

Days 4–12 — inspection

Order these

☐ General inspection ☐ ⭐ Sewer scope — any home over about forty years old, or with mature trees. The highest-value few hundred dollars in the transaction. ☐ Termite / wood-destroying organisms — required by some loan programs ☐ Radon, in prevalent areas ☐ Chimney, if there is a fireplace ☐ Well and septic — flow, load, and water quality ☐ Mold, where there is moisture evidence ☐ Structural engineer, if foundation movement is flagged ☐ Lead-based paint risk assessment, pre-1978 ☐ Asbestos, pre-1980 with suspect materials ☐ Pool, spa, and outbuildings ☐ Roof specialist, on an aged roof

Attend and use it

☐ Attend the inspection. ⭐ The verbal explanation is worth more than the report. ☐ Ask the inspector to rank findings by safety, structure, systems, and water. ☐ Get contractor estimates for anything significant, before the objection deadline. ☐ Check permits at the municipality for any addition, deck, basement finish, or electrical work.

Object properly

☐ ⚠ Do not forward the whole report and ask for everything. ☐ List the items that matter, with estimates attached. ☐ ⭐ Ask for a closing credit rather than repairs — you control the contractor and the quality. ☐ If a repair is agreed, specify who performs it, to what standard, with what documentation, and reserve a re-inspection right. ☐ Know your remedy. ⚠ In most contracts a refused repair means you terminate, not that you compel the repair. ☐ Deliver the objection before the deadline, in the manner the contract requires.

Days 10–24 — appraisal and title

Appraisal

☐ Confirm it was ordered and completed. ☐ Obtain a copy — you are entitled to it. ☐ If it is low, request a reconsideration of value with comparable sales the appraiser did not use, and an explanation of why they are better. ☐ Decide among the four outcomes: seller reduces; you pay the difference; you split it; you terminate under the contingency. ☐ ⭐ If the valuation appears driven by neighborhood demographics rather than property characteristics, raise it — 42 U.S.C. § 3605; 15 U.S.C. § 1691. Appraisal bias is an active enforcement area.

Title

☐ Read Schedule A — verify the legal description and the record owner. ☐ Read Schedule B-I — the requirements. Confirm each will actually be satisfied. ☐ ⭐ Read Schedule B-II line by line — the exceptions. This is where the surprises are. ☐ Order the underlying recorded documents for every exception that matters: easements, covenants, plats, mineral reservations. ☐ Ask specifically: does any easement cross the buildable area? Do the covenants restrict fences, outbuildings, vehicles, rentals, or exterior changes? Were mineral rights severed, and do they permit surface entry? ☐ Order the survey — or confirm the title company will accept an existing one with a no-change affidavit. ☐ Confirm improvements are within setbacks and no structure crosses a line or an easement. ☐ ⭐ Purchase the owner's title policy. ⚠ The lender's policy protects the lender, not you, and you are probably paying for it. ☐ Ask for the enhanced policy comparison. ☐ Deliver title objections before the deadline.

Days 5–35 — the loan

Keep it approved

⭐ Between application and closing, change nothing.

☐ No job change, including a promotion that changes compensation structure ☐ No new credit accounts, financed purchases, or co-signing ☐ No large transfers between accounts ☐ ⚠ No large undocumented deposits — every deposit must be sourced with a paper trail ☐ No hard credit inquiries ☐ ⭐ Underwriters re-pull credit shortly before closing. A financed sofa has ended more closings than any inspection finding.

Work the file

☐ Respond to every underwriting condition the same day. ☐ Confirm the appraisal, title, and insurance have been received by underwriting. ☐ Confirm the loan originator is licensed or registered — 12 U.S.C. § 5101. ☐ Bind homeowner's insurance effective the closing date, and flood insurance if required. ☐ Watch the financing contingency date. ⚠ An extension requires the seller's written consent. ☐ If denied, demand the written statement of specific reasons — 15 U.S.C. § 1691; 12 C.F.R. part 1002. ⭐ Then check your credit report for errors — 15 U.S.C. § 1681.

The disclosures

☐ Loan Estimate received within three business days of application — 12 C.F.R. part 1026; 15 U.S.C. § 1638. ☐ Closing Disclosure received at least three business days before consummation. ☐ ⭐ Compare them line by line. ☐ Zero-tolerance charges may not increase at all. Lender fees, affiliate fees, and services you could not shop for. ☐ Ten-percent aggregate tolerance for recording fees and third-party services from the lender's written list. ☐ ⭐ Demand a cure for anything over tolerance — the refund is generally due within 60 days of consummation. 12 C.F.R. part 1024; the settlement statement requirement traces to 12 U.S.C. § 2603. ☐ Question every new line item. ☐ ⚠ Check for an affiliated business arrangement disclosure — and remember you generally cannot be required to use the affiliate. Kickbacks and unearned fees are prohibited by 12 U.S.C. § 2607; see Freeman v. Quicken Loans, Inc., 566 U.S. 624. ☐ ⚠ Confirm the seller has not required a particular title insurer — 12 U.S.C. § 2608. ☐ Review the escrow account setup — 12 U.S.C. § 2609. ☐ Note the servicing disclosure — 12 U.S.C. § 2605 — ⭐ this is the provision you will use if payments are misapplied later.

Days 36–38 — walk-through and closing

Walk-through

☐ ⭐ Schedule it after the sellers have moved out. ☐ Condition matches the contract, allowing for ordinary wear ☐ ⭐ Every agreed repair complete, with receipts, permits, and warranties in hand ☐ Every included fixture and item of personal property present — ⚠ light fixtures, appliances, window treatments, sheds, remotes, keys, garage openers ☐ HVAC operates in both heating and cooling ☐ Every faucet, drain, and toilet operated ☐ Every outlet, switch, and appliance tested ☐ Garage door and opener tested ☐ No new damage from the move ☐ Debris and personal property removed ☐ Utilities still on ☐ ⚠ If something is wrong, do not close on a promise. Credit, escrow holdback with a written agreement, or delay.

Closing

☐ Bring government identification. ☐ ⭐ Verify wire instructions by telephone, using a number you looked up independently. ⚠ Never act on instructions received or changed by email. Real estate wire fraud is common and the funds are generally unrecoverable. ☐ Confirm the vesting — how you will hold title. ⭐ This has estate planning consequences and is awkward to change later. ☐ Review the deed type. ⚠ A quitclaim conveys whatever the grantor has, which may be nothing. ☐ Reconcile the settlement statement to the Closing Disclosure. ☐ Check the prorations — taxes, HOA, utilities, and any rent. ☐ Confirm the payoff and release of the seller's mortgage are being handled. ☐ Sign any occupancy agreement, if possession is not at closing — ⚠ daily rate, deposit, insurance allocation, hard end date. ☐ Get copies of everything you sign.

Days 39–68 — after

☐ Confirm the deed and security instrument recorded, with instrument numbers. ☐ ⚠ Confirm the seller's prior mortgage was released of record. ☐ Confirm the owner's title policy issued, and read it. ☐ Confirm insurance is effective as of the closing date. ☐ File any homestead or exemption declaration. ☐ Change the mailing address for tax bills. ☐ Register with the HOA and obtain the governing documents. ☐ Locate the water shutoff, the electrical panel, the gas shutoff, and the sewer cleanout. ☐ Change the locks and any garage codes. ☐ Calendar the first escrow analysis and the first tax installment. ☐ ⭐ Calendar the property tax appeal deadline. A purchase frequently triggers reassessment. ☐ Watch for a servicing transfer notice — 12 U.S.C. § 2605. ☐ Watch for the tolerance cure refund, if any charge exceeded tolerance. ☐ File the complete transaction record: contract, disclosures, inspection reports, repair receipts, title policy, survey, and settlement statement. ⚠ Keep it for as long as you own the property, and after.

The seller's parallel track

☐ Order a preliminary title report before listing. ⭐ Surprises are cheap before contract. ☐ Locate payoff figures; confirm prior mortgages were released. ☐ Gather permits for all past work; address anything unpermitted. ☐ Consider a pre-listing inspection — ⭐ it converts negotiating surprises into disclosed conditions. ☐ Complete the disclosure form fully and in writing. ⚠ The cheapest defect is the disclosed one; "as is" does not excuse concealment of a known material defect. ☐ Deliver the lead-based paint disclosure, records, and pamphlet for pre-1978 housing — 42 U.S.C. § 4852d. ☐ Verify proof of funds on any offer without a financing contingency. ☐ Track the buyer's contingency dates — those are the days the deal can die. ☐ Respond to the inspection objection within the deadline. ☐ ⚠ Never require the buyer to use a particular title insurer — 12 U.S.C. § 2608. ☐ Comply with fair housing law in every showing, communication, and advertisement — 42 U.S.C. § 3604; 42 U.S.C. § 3606; 42 U.S.C. § 3617; 42 U.S.C. § 1982. ⭐ Testers have standing — Havens Realty Corp. v. Coleman, 455 U.S. 363 — and brokerage liability follows agency principles — Meyer v. Holley, 537 U.S. 280. ☐ Plan the tax consequences before closing. ☐ Vacate fully, remove all debris, and leave manuals, warranties, keys, and remotes. ☐ Provide forwarding information to escrow and the buyer. ☐ Keep the transaction file for years.

The five that matter most

⭐ 1. Extract the calendar in hour one, with reminders. ⭐ 2. Order the sewer scope. ⭐ 3. Read Schedule B-II line by line, and buy the owner's title policy. ⭐ 4. Compare the Closing Disclosure to the Loan Estimate, and demand any cure. ⭐ 5. Verify wire instructions by phone, on a number you looked up yourself.

Appendix A — The inspection objection letter

Re: [Property address] · Contract dated [____] · Inspection objection

Pursuant to Section [___] of the contract, Buyer objects to the following conditions disclosed by the inspection completed on [date]. The inspection report and supporting estimates are attached.

# Condition Category Report page Estimate
1 Safety $
2 Structure $
3 Systems $
4 Water $
Total $

Buyer requests a closing credit of $[____] in lieu of repairs. Buyer will accept, in the alternative, completion of items [___] by a licensed contractor, with receipts and any applicable permits delivered at least three days before closing, and a re-inspection at Buyer's expense.

Please respond in writing by [date] as the contract requires.

☐ ⭐ Four categories, ranked. Estimates attached. A specific number. One page. ☐ ⚠ Do not attach a forty-page report and ask for "everything to be fixed."

Appendix B — Title commitment review sheet

Item Finding Acceptable? Action
Legal description matches contract and survey ☐
Record owner matches seller ☐
Policy amount = purchase price ☐
B-I: existing mortgage to be released ☐
B-I: all owners signing ☐
B-I: estate or trust authority documented ☐
B-I: taxes and assessments current ☐
B-II: utility easements ☐ Order the recorded document
B-II: access easements benefiting others ☐ Order the recorded document
B-II: drainage easements ☐
B-II: covenants — fences, outbuildings, vehicles, rentals, exterior ☐ ⭐ Read the declaration
B-II: mineral or water rights severed ☐ ⚠ Surface entry permitted?
B-II: general survey exception ☐ Survey removes it
B-II: encroachments noted ☐
B-II: HOA assessment lien ☐
B-II: mechanic's lien exposure ☐ ⚠ Ask for a lien affidavit
Owner's policy ordered ☐ ⭐ Yes
Enhanced policy priced and compared ☐

⚠ Any "no" in the Acceptable column becomes a title objection, and the objection deadline is short.

Appendix C — Closing Disclosure comparison

Line Loan Estimate Closing Disclosure Change Tolerance Cure owed?
Origination charges $ $ $ ⚠ Zero ☐
Points $ $ $ ⚠ Zero ☐
Application fee $ $ $ ⚠ Zero ☐
Underwriting fee $ $ $ ⚠ Zero ☐
Appraisal $ $ $ ⚠ Zero ☐
Credit report $ $ $ ⚠ Zero ☐
Flood determination $ $ $ ⚠ Zero ☐
Recording fees $ $ $ 10% aggregate ☐
Title — lender's policy $ $ $ Depends on shopping ☐
Title — settlement fee $ $ $ Depends on shopping ☐
Survey $ $ $ Depends on shopping ☐
Prepaid interest $ $ $ None ☐
Insurance premium $ $ $ None ☐
Escrow deposits $ $ $ None ☐
Cash to close $ $ $

⭐ Any zero-tolerance increase without a documented valid changed circumstance must be cured. Ask in writing: "Please identify the changed circumstance justifying the increase in [line], or issue the tolerance cure."

Appendix D — The wire fraud protocol

⚠ This is the single largest uninsured loss in residential real estate, and it is entirely preventable.

☐ Get the escrow or attorney's phone number from the contract or the firm's own website — not from any email. ☐ Call that number and ask them to read you the wire instructions aloud. ☐ Compare digit by digit to what you were sent. ☐ ⚠ Treat any emailed change to wire instructions as fraud until proven otherwise. Legitimate instructions rarely change; fraudulent ones always do. ☐ Never send wire instructions or account numbers by email yourself. ☐ Ask your bank about a callback verification before releasing funds. ☐ Send a small test wire first where the closer permits it. ☐ Call immediately after sending to confirm receipt. ⭐ The recovery window is measured in hours. ☐ If funds are misdirected: call the sending bank to request a recall, call the receiving bank, file a police report, and report it to federal authorities the same day.

Appendix E — What to keep, and for how long

☐ The purchase contract and every amendment — permanently ☐ All seller disclosures, including the signed lead-based paint acknowledgment — permanently ☐ Inspection reports and specialized reports — permanently ☐ Repair receipts, permits, and warranties — permanently ☐ The survey — permanently ☐ The title commitment and the owner's title policy — ⭐ permanently; the policy outlives your ownership for claims arising during it ☐ The deed, recorded, with the instrument number — permanently ☐ The release of the seller's prior mortgage — permanently ☐ The settlement statement and Closing Disclosure — ⭐ permanently; they establish basis for tax purposes ☐ Loan documents — until paid and released, then keep the release ☐ Insurance policies and claims — as long as claims may be made ☐ HOA governing documents — while you own ☐ Improvement receipts — ⭐ permanently; they add to basis and reduce tax on sale

⚠ Scan everything and keep a copy off-site. The one document nobody can find later is always the one that matters.

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