When Buying A Home In The Poconos, be Sharp as an Eagle and Know those terms in the Agreement of Sale (AOS) before you sign.
Some Common Real Estate Terms that you may not be familiar with when reading over the Agreement of Sale (Contract) are defined below:
ESCROW ACCOUNT - This is a Bank Account of the Broker for the Seller that is opened and managed specifically for Deposits that are put down toward the purchase of a home, under the Guidelines and Rules and Regulations of the State Real Estate Commission. This is the account where your deposit will be held until the Date of Closing or until The Agreement of Sale is officially released by a fully executed Agreement of Sale release.
PRO-RATED FEES, ASSOCIATION DUES, TAXES, ETC. - Pro-rated means that the fees applicable to the property will be split between the Seller and the Buyer of the home, for example taxes. The Seller pays the fees that are due for the year (fiscal or calendar) up to and including the day of closing and the Buyer pays the fees from there forward until the end of the calendar or fiscal year.
DATES/TIME IS OF THE ESSENCE - Meaning that everything is to be accomplished in a timely manner, many in accordance with the Dates that are stated on the Agreement of Sale.
ALL CHANGES TO THE AGREEMENT OF SALE SHOULD BE SIGNED AND DATED - Any and all changes made to the Agreement of Sale, done on the Agreement of Sale are to be signed by each party and dated by each party. Most Realtors do any changes to the Agreement of Sale on an Addendum to the Agreement of Sale, instead of writing on the Agreement of Sale itself.
INDIVIDUAL ON-LOT SEWAGE DISPOSABLE SYSTEM - This is your Septic System, on your lot, for you to maintain and repair. Many of our areas do not have access to Central Sewer so we each have our own. Many are in-ground systems (all tanks and drainfields are under the ground) and many others are the Above-ground systems, where the tanks are at ground level and the drainfield (sandmound) is above ground - commonly referred to by many as a Turkey mound.
HOMEOWNERS ASSOCIATION/COMMUNITY - Our Subdivisions are referred to as Communities and many have the formal name of 'STAR HOMEOWNERS ASSOCIATION' for example. These Associations are there to protect your interest and ensure that properties around you retain their value as well as offer Amenities (Pools, tennis courts, etc) for your enjoyment. Naturallly in order to do this they charge Annual Dues that you will be required to pay as a Homeowner within this Community. These Associations dues are another one of those items that are pro-rated at Closing.
CONTINGENCIES - Items that you, the Mortgage Company or otherwise have stipulated to in the Agreement of Sale. Such as you have elected the "Contingency" of having a home inspection. The Mortgage Company will have the "Contingency" that the home must appraise for mortgage value.
RADON - Radon is an odorless, colorless gas that comes up through the ground and into your home. This gas is becoming more predominant in our area. This is part of the Contingency inspection that you will want to elect. Radon Gas can cause health issues with long term exposure.
RESALE CERTIFICATE - This is an information packet provided to you from the Homeowners Association that you are purchasing within. This details the rules and regulations and deed restrictions of the Community. Many Communities now offer this detail online also.
TRANSFER OF TITLE AND DEED TO THE BUYER - Clear Title to the home is transferred to you after your title Company has "searched" the Title of the Property for you and once the seller has signed the deed at closing and all the required closing documents have been signed. Seller is required to deliver the home "broom swept" and in the same condition as it was when you previewed the home and agreed to the purchase and also, seller is required to keep the electric on in the home through the day of closing. You will be required to have the utilities transferred into your name effective the day after closing.
These are the key facts that most buyers ask questions on. If you have other items that you have questions on that are not covered here, please don't be afraid to ask your Realtor for clarification.
When looking to sell your home in the Poconos, enlist the guidance of a Caring, Compassionate, Experienced and Reputable Realtor. Your Local Pocono Realtor, Bobbie Smith
Bobbie Smith, CRS
570-242-1891 Cell
570-421-2345 Office
Email me now: bobbiej51@hotmail.com
RS#274017
My Website - http://www.homesinthePoconosforsale.com
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All pictures, text, etc. stated within is the exclusive property of Bobbie Smith and cannot be copied or duplicated without written consent from Bobbie Smith. All statistics and data contained herein are obtained from reliable sources and are deemed reliable however each individual should always do their own research on each topic and derive their own conclusions. Any statements of opinion are just that, the opinions of Bobbie Smith.
Bobbie: This is excellent information that consumers need to understand before signing a contract.
Bobbie- what a great primer for any buyer, first time or seasoned. Just think how hard it would be if you'd never bought a house and had no other guidance.
Excellent information for buyers in the Pocono area, Bobbie. These are some of the terms they should be familiar with when purchasing a home.
Hi Anita, I hope potential Buyers find it helpful. You need to be informed before you sign.
Hi Kathy, That is what I was thinking. We have so many first time home buyers, and new to the area Buyers, they need to understand the "unfamiliar" terms of the AOS
Hi Gabe, Yes, thanks. They certainly do and there are so many more with all the other documents too.
Bobbie, I think any buyer would appreciate this list of information. AOS is not an abbreciation I've heard but it is a good one.
Margaret
Hi Margaret, I hope Buyers find it useful. AOS for Agreement of Sale, that's a common one in our area. Thanks.