Transaction Coordination Flashcards

The buyer's financing contingency deadline passes without the buyer giving notice. In many contracts, what is the likely effect?

Answer: The contingency may be deemed waived or satisfied, depending on contract terms

Many forms treat silence past a contingency deadline as waiver, but the specific contract language controls.

What is the main purpose of the buyer's final walkthrough?

Answer: To confirm the property's condition and that agreed repairs were made

The walkthrough verifies the home is in the agreed condition before funds are released.

A dispute arises over earnest money after the buyer terminates. What should the escrow holder generally do?

Answer: Hold the funds until both parties agree in writing or a court or arbitrator rules

Escrow holders typically need mutual written release or a legal determination before disbursing disputed deposits.

The seller wants to stay in the home for two weeks after closing. Which document best protects the seller and buyer?

Answer: A post-closing occupancy (rent-back) agreement

A written rent-back agreement sets terms such as rent, deposit, liability, and move-out date.

Which closing document conveys ownership from the seller to the buyer?

Answer: Deed

The deed is the instrument that transfers title from grantor to grantee.

A title commitment shows an old mechanic's lien on the seller's property. What is the best seller-side action?

Answer: Work with the seller and title company to clear or bond off the lien before closing

Liens must usually be resolved so the seller can deliver marketable title as the contract requires.

Which tool most helps a seller's agent avoid missed contingency deadlines?

Answer: A transaction timeline or checklist with all contract dates

A dated checklist tracks every contract milestone so nothing slips.