What happens during and after the 3 day waiting period?

During the three day waiting period, also known as the "cooling off period," buyers and sellers have time to review and inspect the property, verify any information provided during negotiations, and consider their options. It allows both parties to have a buffer before completing the sale. Here's what typically happens during and after the 3 day waiting period:

During the 3 day waiting period:

1. Legal Review and Inspections: Buyers utilize this period to have their legal team review all documentation, such as the purchase agreement and any contracts. The waiting period allows time to identify any issues or concerns that need to be addressed before moving forward with the transaction. Sellers may also use this time to complete necessary repairs or prepare the property for transfer.

2. Buyer's Right of Rescission: Depending on state laws, buyers may have a right to rescind the purchase agreement during this period. This right allows buyers to back out of the transaction without penalty if they find any significant problems or have a change of heart.

3. Negotiations: In case any concerns arise during this period, buyers and sellers have an opportunity to negotiate and amend the terms of the purchase agreement to address these issues. This can involve discussions about repairs, price adjustments, possession dates, or other aspects of the sale.

4. Resolution of Contingent Clauses: If there are any contingent clauses in the purchase agreement, such as an appraisal clause, a home inspection clause, or financing contingency, buyers and sellers may work to resolve these contingencies during this period.

After the 3 day waiting period:

1. Final Preparations: Once the 3 day waiting period ends, both parties finalize any remaining preparations for closing the sale. Sellers usually provide buyers with occupancy instructions and any keys or access codes needed to move into the property. Buyers complete their financing arrangements and ensure all required funds are in place for the closing.

2. Closing the Sale: The closing takes place when both parties sign the necessary documents and complete the transfer of ownership. The remaining funds are disbursed, and the deed passes from the seller to the buyer. At closing, any adjustments, closing costs, and taxes are settled, and the buyer officially takes possession of the property.

3. Post-Closing: After closing, buyers are considered the legal owners of the property and can complete their moving process. Sellers finalize any remaining tasks, such as the transfer of utilities and forwarding of mail, and release any relevant documents or keys to the new owners.

It's important to note that the specifics and timelines of the 3 day waiting period can vary based on state regulations and the terms agreed upon by buyers and sellers. Buyers and sellers should carefully understand the laws in their jurisdiction and seek guidance from legal professionals to ensure a smooth and legally compliant transaction.