Every business has a learning curve and real estate is no different in this respect. You will get terms and acronyms thrown at you that you have never heard of before and it can be intimidating to ask questions when you think it is something you should know. So now that you are here, let’s discuss what PITI is… Continue reading
Fully Executed Contract Date – This is the date the contract becomes official. The purchase and sale contract is not considered fully executed (official) until both sides sign. If you sign as the buyer on the 9th and the seller signs on the 10th your fully executed contract date is the 10th. A lot of the other dates in the contract bridge off this date so it is important to save your contract somewhere where you can easily refer to it.
Inspection Contingency Date – Assuming your contract has an inspection contingency this is where the amount of days you have to complete the inspection will be outlined. On most contracts you have a certain amount of days to not only get the inspection completed, but to also make a list of any repairs you want to request that the seller complete before closing.
Earnest Money Deposit Date
The earnest money is typically due to the sellers within 48 hours of the contract being fully executed. Earnest money is held in escrow typically by the sellers real estate brokerage, lawyer or title company until closing. At closing that money goes towards the buyers closing costs, prepaids, and escrows.
Mortgage Commitment Date
This is the date that the bank officially commits to lending to the buyer. They will issue a mortgage commitment letter that you will then give to the sellers in order to satisfy this part of the contract. Your lender should be well aware of the mortgage commitment date, but you may want to remind them of it when it is approaching so they can be on top of things. Typically the mortgage commitment date is 7-10 days before closing.
Closing Date
This is pretty self explanatory. The transaction closes on this date and the property officially changes hands from the seller to the buyer.
We discussed the first five rental property operating expenses here so be sure to check that out along with this blog to get a firm grasp on all of the expenses you want to be accounting for. Here are the final five… Continue reading
Just like any business owner does, as a landlord you want to accurately account for any income and expenses. The most common income derived from a rental property is rental income, but what about expenses? Do you know which to account for? If not this guide is for you… Continue reading
Check out Part I and Part II of our security deposit series before reading this post and I promise you it will make more sense. The last aspect of security deposits left to discuss is when as a landlord you have a right to keep all or some of your tenants security deposit. Just like any aspect of rental real estate there are local guidelines and laws that govern this… Continue reading
If you missed part I check it out here. Now that you know how much of a security deposit to collect and when to collect it from your tenant let’s take a look at two more key elements of the process surrounding security deposits and your rental property… Continue reading
You are finished before you even start as a landlord if you are not collecting a security deposit for your rental property. Although it is not a “requirement” to collect one by law you probably want to institute one into your standard operating procedure as a landlord. Here are the basics regarding security deposits… Continue reading
This is a polarizing topic among landlords and just like anything in life people are usually shaped by past experiences. Did you have a tenant cause damage to a home because of misuse of a washer/dryer? Then you are probably a hard no. Have you had good experiences with providing them to your tenant? You are more likely to be a yes. Here are some pointers on how to handle this hot button landlording topic… Continue reading
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