Managing deadlines is critical in real estate contracts. Each state has different laws regarding real estate, and the deadlines in the contracts, while oftentimes similar, are unique to each particular contract. Miss an important deadline and you can easily bust a deal on selling your home, or worst case, you could end up in a lawsuit with a buyer.
Below are a few of the critical dates in an Oklahoma residential real estate contract:
Contract Signing Date
This is the date when all parties complete signing of the final contract.
Earnest money deposited at title company
Once the contract has been finalized, the earnest money must be deposited in either the trust account of the title company or the listing broker’s trust account. This is usually done within 3 days after execution of the contract.
TIME REFERENCE DATE
The Time Reference Date (TRD) is an important date in the transaction, and is the date when all investigations, inspections and reviews shall commence, regardless of the date the contract was signed. Unless specified otherwise in the contract, this begins on the 3rd day after contract signing.
Investigations, Inspections, and Reviews
Buyers have 10 days (unless specified otherwise in the contract) to complete their investigations, inspections, and reviews of the property. The seller shall make the property available to the buyer and buyer’s representatives for the inspections, and ensure that utilities are operations for the inspection period and through closing.
Treatments, repairs and replacements (TRR)
Within 24 hours after the inspection period ending date, the buyer shall either provide a written cancelation of the contract, or a copy of all inspection reports along with a Notice of Treatments, Repairs, and Replacements form outlining items the seller wishes to be repaired.
Once the seller receive the TRR, the buyer and seller will have 7 days (unless specified otherwise in the contract) to negotiate the repairs. Once the seller and buyer agree to the repairs, the seller shall have all repairs completed prior to closing date. If the seller and buyer cannot agree to the repairs, then the contract shall terminate and the earnest money is returned to the buyer.
Expiration of Buyer’s Right to Cancel the Contract
If the buyer fails to perform inspections, deliver the TRR to the buyer, or fails to cancel the contract within the time periods of the investigation, then the right of the buyer to cancel the contract expires.
The buyer has the right for a final walk-though and a re-inspection by their representatives prior to closing to inspect the repairs.
Transfer of title
Title is normally transferred at closing. The seller must deliver clear title to the property 30 days prior to closing. The buyer has 10 days after receipt of the title to examine title evidence. This is normally handled by the title company. If problems occur with the title, the seller can delay the closing for up to 30 days to clear the title.
These dates are very important to both buyers and sellers of real estate in Oklahoma. As an experienced Realtor, I keep track of these dates and ensure that we stay within our contract dates, or have signed agreements to extend dates if necessary. This protects all parties in the transaction and ensures there is no mis-communication or missed dates that would cause my buyer or seller to fail to fulfill their obligations under the contract.