Here in NC we have a new Offer to Purchase and Contract that went into effect as of January 1, 2011. There was no transition phase, this new form is IT for residential home buyers and sellers in NC as of this month.
The new form includes some pretty major changes and I have to say, I REALLY like it!!! I think this new offer/contract form is a great change, it’s much more logical and streamlined. This is one case of change being a very good thing indeed.
What’s so different about the new (and improved) NC offer to purchase and contract?
– We won’t miss you “performing the function for which intended”, no more “cost of repair contingency”, separate and domino dates for buyer deadlines are history….HELLO Due Diligence
That’s right, as of January 2011 NC has gone to a due diligence period for home buyers – essentially figure out if you plan to go forward with buying the house.
Inspections, any and ALL repair requests/negotiations, homeowners association investigation, survey, appraisal, loan progress, anything you want to investigate about that house…..it’s all been rolled into one single deadline for the buyer. The due diligence date – which of course is negotiable between buyer and seller.
Now just because we’ve gone to a due diligence contract here in NC doesn’t mean it’ll be a cake walk for home buyers (or sellers).
In reality this new contract is going to (in my opinion) require both buyers AND sellers to be even more prepared than ever before.
BUYERS – do NOT waste any time looking into and getting your home purchase financing in order. Before you ever make an offer on a home your lender should have your documentation and have the loan process already in progress (YES, they can do this before you find a house!). It’s also very important that your lender understands the new contract, I’ve talked with several of my contacts that have taken the update course so they understand the changes that took place and how best to serve their buyers.
SELLERS – let’s put aside the prevailing market conditions for a second….this new contract places an even greater emphasis on being prepared, pro-active and disclosing any and all information you have available to buyers right upfront (think homeowners association info, contacts, Pre-Listing Home Inspection and proof of any completed repairs) and knowing from the beginning whether there’s anything about your home that would limit financing options.
This new NC Offer to Purchase and Contract is indeed very different from what we’ve previously been used to but I really do like the changes it’s bringing about. Yes, it places greater responsibility and emphasis on preparation and pro-active buyers and sellers…but isn’t that a good thing?!?!?
Due diligence…I think we’re really going to like having you here in NC!!!
Copyright©2011 by Diane McDermott, All Rights Reserved, “The NEW NC Offer to Purchase and Contract – I Like It, I Really Really Like It!”
The content of this blog is the original content of Diane McDermott, NC Residential Real Estate Broker in Charlotte NC’s real estate market serving neighborhoods in Charlotte NC