Experienced Buyers

Experienced Buyers

Below is a listing of some local market practices that may be different than what you are used to in your current location.

•  Connecticut is a "Buyer Agent" state. Although commissions are paid by the seller, through the sellers' broker, a buyer agent represents the buyers exclusively. A buyer agency agreement must be entered into prior to looking at any homes.
•  In Connecticut, the seller is not required to perform a home inspection prior to putting their home on the market. Any inspections are the responsibility of the buyer.
•  There are no title or escrow companies here. Closings are done by your attorney, usually at the office of the buyers' attorney. You will need to pay for your lender's attorney as well as your own. Usually, with lender approval, your own attorney can handle both tasks and save you money. The price for a normal closing will fall in the $450-$750 range.
•  Realtors will draft the purchase and sale agreement with your assistance. You may want your attorney to review the document, but attorneys do not draft the agreement in this market area.
•  A good faith deposit is required with any offer to purchase. Upon acceptance by the seller, the deposit will be held in escrow by the sellers' listing broker. This initial deposit need only be for a small amount, relative to the purchase price of the property. A second, more substantial deposit is called for upon completion of any inspection contingencies. Again, this will be held by the sellers' broker. This money is released upon closing or, failing closing, at the direction of both buyer and seller in mutual agreement. (The exception to this is with new construction. Usually, deposit money is released to the builder upon mortgage contingency being met.
•  There is no "cooling off" period in Connecticut. Once a purchase and sale agreement is signed by both parties, the only way to terminate the contract is through the inspection and or mortgage contingency clauses. The exception to this is when purchasing a PUD (planned unit development) of Condominium. In this case, you have 5 business days after receipt of the by-laws and financial statements to terminate for any reason.
•  In this market, sellers usually do not pay for the closing costs of the buyer. On some lower priced homes, or under some government subsidized mortgages, it may be negotiated for the seller to pay some or all of the buyers' closing costs.
•  In this market, it is not required, not is it customary for the seller to provide a survey for the property being sold. However, if you are buying a property where the land boundaries are of special importance, then this can be negotiated with the seller if they have not already provided one.