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LeBoeuf Real Estate, Inc.
703-404-0067
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LeBoeuf Real Estate, Inc.
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703-404-0067
noofficeemail@
noofficeemail.com
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 CONTRACT TO SETTLEMENT

 CLOSE ON TIME

FROM RATIFIED SALES CONTRACT TO SETTLEMENT

Once all the terms of the Sales Contract (Contract) are agreed to by the Seller and Buyer
you have a Ratified Contract. At this time the clock begins ticking on all the Contingencies,
Appraisal, Closing Date and other timelines in the Contract. Buyers and Sellers must be aware
that Time is of the Essence. This means every Contingency and Due Date must be adhered
to 100% of the time. In the event issues or problems arise, the parties can adjust the Contingency
Due Dates as long as all parties to the Contract agree in writing.

For Buyers, your Agent will assist you in meeting all the Due Dates. For Sellers,
LeBoeuf Real Estate will assist you to ensure all time lines and Due Dates are met. For Sellers,
this may mean ordering the pest inspection, ordering HOA and Condo documents, letting the
appraiser in the home and providing access to contractors repairing or replacing items listed on
the Home Inspection prior to the Walk-Through Inspection.

A copy of the Sales Contract and all the Contingencies and Addendums will be sent to the
Lender, Settlement Company, Buyer, Seller, Listing Agent, and if the Buyer is
represented by another brokerage, to them (Agent). 

The deposit will be applied to Closing costs and the purchase price at Closing. If you are working
with a real estate agent, your deposit check will be made out to the Real Estate Brokerage firm
they represent.

For Buyers, your Agent will assist you in setting up the Inspections. LeBoeuf Real
Estate has listed a number of Home Inspection/Radon, Well and Septic, Termite and other
inspectors (engineers and environmental) that have proven reliable and reasonable over the
years. You are under no obligation to use any of them and can choose anyone you desire.

If you are financing the home, the lender will require a termite/pest inspection within 30 days
of Settlement. This Inspection normally costs $50 and either the Seller or the Buyer can be
responsible for scheduling and paying for the Inspection. The Sales Contract will state which
party is responsible.

If the Contract has a Financing Contingency, you must be sure that you communicate with your
lender and respond to their requests for information in a timely manner. The lender's
underwriter will be reviewing all the information you have provided and in most, if not all cases,
will pull another credit report just prior to Closing. Therefore, it is extremely critcial that you do
not purchase a large ticket item such as an automobile prior to Closing. Also, a little common
sense on the use of credit cards will go a long way toward making the purchase possible.

For Sellers residing in an HOA and/or a Condo, disclosure documents must be provided to
the Buyer prior to Settlement. Buyers have three (3) days to review the documents. If the
Buyer is in disagreement with any of the Conditions, Covenants or Restrictions in the
documents, they can void the Contract but this must be done within the three day review
period. The review period starts when you receive the documents. If you have chosen to
receive the documents by email, you must check your email every day or you may lose 
your right to Void the contract if you are not happy with any of the restrictions.

If you have any questions about the HOA or Condo documents, please do not hesitate to call
your Agent. The main issues are usually parking, fees, animals, additions to the
home, special assessments and reserves. Financial statements will also be a part of the
association documents. It's critical that the association has adequate reserves to cover major 
improvements such as roof replacement for a Condo. Watch for Special Assessments! If there
are any, bring it to the attention of your Agent right away. They will help investigate the reason
and costs.

During the Home Inspection, the inspector will provide information on the various features
of the home and show you where and how to turn off the water, gas and electrical service in
case of an emergency.

It is a good idea to follow the inspector around as much as possible so you are familiar with
all the issues/problems found in the home. The inspector will usually find a number of
issues/problems so do not be alarmed - there is no perfect home. A little common sense with
respect to minor issues such as a small dent/hole in the drywall caused by a doorknob, a torn
screen or other minor issues probably shouldn't be on the list of repairs that should be done
by the Seller. HVAC, electrical, plumbing, roof leaks, appliances and structural defects should
be repaired or replaced by the Seller. Remember that everything is negotiable so be reasonable
on the minor issues and tough on the major issues. Your home inspector will provide
guidance and advice on what it may cost you to repair or replace a deficiency but the final
decision is up to you. If the Seller refuses to repair or replace deficiencies, you can Void
the Contract.

If damage is found to the home by the Termite/Pest inspection, the seller must repair the
damage or the Lender will not fund the purchase. At Settlement you will receive a copy of
the Termite/Pest inspection and any repairs made to the home.

If an Appraisal is required, the Lender will schedule an appraiser of their choice to perform
the Appraisal. It is always a good idea to check with the Lender to be sure the Appraisal has
been ordered. Normally the Contract will allow at least 21 days for the Appraisal to be
completed. You will receive a copy of the Appraisal at Closing. Your lender will give you the
Appraised price prior to the Appraisal Contingency Deadline Date. If the Appraisal comes in
less than the offered price, the Seller can either lower the selling price or try and negotiate
with you. If you do not agree with the Seller's offer or counteroffers you can Void the Contract. 
Any difference between the lower Appraisal Price and the negotiated Offered Price must
be paid by the Buyer at Closing.

For the well and septic inspections, every County has different requirements with respect to
how inspections should be made. Please check the LeBoeuf Real Estate Approved Vendor List
to ensure you are hiring inspectors that know the local rules. If you have any questions, please
do not hesitate to ask. It is always a good idea to be present when the well and septic inspections
are made. This is especially true of alternative septic systems. The inspector can show you how
to perform the periodic maintenance on the system. Problems with well and septic can be costly
so it behooves you to be sure there are no problems.

The Settlement Company you have chosen will work with both Buyer and Seller to be sure
everything needed to go to Closing is complete. Please respond in a timely manner to their
requests. They are working for you to be sure the sale is completed. The Settlement Company
will order the Survey and check it out to be sure there or no issues such as an encroachment.
They will also order the Title Search and comment if any issues with Title are found. Your
lender and settlement attorney/staffer will also review the Title so you have knowledgeable
people making sure the Title is clear.

Make sure you have utilities in your name as of the date of Settlement. You must have
homeowners insurance in place for your lender prior to Closing. All LeBoeuf Real Estate Buyers
will have a Home Warranty policy that will cover most, if not all, of the appliances, HVAC,
plumbing, electrical and other issues that may arise are covered under the warranty. It is
imperative that you read the home warranty and do not call for service unless you have cleared
it with the warranty company. In most cases, they will send their own service people they have
contracted with to repair or replace the item. Normally there is a $100 deductible.

The last inspection is the Walk-Through. The Walk-Through is done 2 or 3 days before 
Settlement. It can be on the day of settlement but best 2 or 3 days ahead to give the
Seller time to fix problems found. You will go through all the rooms, turn on all the faucets,
flush the toilets, open all the doors, turn on all the lights and check to be sure all the appliances
and fixtures are in place. You will also check to be sure all the Home Inspection items to be
repaired/replaced are complete. Damage resulting from the Seller moving should be repaired
by the Seller. If there are any issues, they can be addressed at the Settlement Table. All issues
found in the Walk-Through can be negotiated but they must be addressed and agreed to in writing
and/or paid at the Settlement table.

You will received the keys and garage door opener(s) at Settlement. Your Agent will
review the HUD-1 to be sure all the Settlement Charges are appropriate. The HUD-1 should be
prepared and given to your Agent a day before Closing. The Settlement Company will inform you
of the amount of funds you are to bring to the Closing at least a couple of days ahead of
the Closing date to allow you time to get a Certified Check. Check to be sure you have received
the Home Warranty. You need to sign it. The Settlement Company will send it on to the warranty
company.

Your diligence and cooperation is extremely critical. Remember everyone is working to make
your home sale/purchase happen and to ensure that your requirements and needs are met. If you
have any questions, do not hesitate to ask at any time for any reason. It is important to us that you
are completely satisfied. We are here for you 24-7 so PLEASE do not hesitate to ask for help
or information.