Earnest Money Deposit (EMD)
An Earnest Money Deposit (EMD), also known as a “good faith deposit,” is a deposit made by the buyer to show that they are serious about purchasing the home. The EMD is typically held in escrow by a third-party and will be applied towards the purchase price of the home if the sale goes through.
Contingency Deadlines
A contingency is a condition that must be met before the sale can be completed. For example, a contingency might be that the buyer must secure financing by a certain date. The contingency deadline is the date by which the contingency must be met.
Contingency Removal
Once the contingency has been met, the buyer must remove the contingency in writing. This means that the buyer is committed to purchasing the home and is ready to move forward with the transaction.
Closing Disclosure
A Closing Disclosure is a document that provides a detailed summary of the final costs associated with purchasing a home. It includes information on the purchase price, the loan amount, and any other charges such as closing costs.
Signing Disclosure
Before closing, the buyer will need to review and sign the Closing Disclosure. This is a legally binding document that confirms that the buyer understands the terms of the transaction and agrees to the costs outlined in the Closing Disclosure.
Closing
Once all contingencies have been met, the Closing Disclosure has been reviewed, and all necessary documents have been signed, the sale can be completed, and the Closing can take place. The Closing is when the buyer pays the remaining balance of the purchase price and receives the keys to the home.
It’s important to understand that the process of buying a home can vary depending on the location and the property. It’s a good idea to consult with a real estate professional to get a better understanding of the process in your area and to ensure that you have all the necessary information to make an informed decision.