Once you’ve reached mutual acceptance with a seller and all parts of the contract are signed and received by all parties, you have what’s called a Ratified Contract. The date on which all parties have received a complete copy of the fully executed (signed) contract agreement is called the Ratified Contract Date.
The Contract Ratification Date is a very important date on your contract – it’s the date on which the clock starts ticking for all of the deadline associated with your contract. A few standard, important contract deadlines are:
- Due Diligence Period: the time period during which you will complete all inspections of the property and during which we will negotiate any repairs we would like the seller to complete prior to closing.
- Financing Contingency Period: the time period during which you complete your loan application and receive full approval from your mortgage lender.
- Appraisal Contingency Period: the time period during which the lender orders the real estate appraisal and the appraiser completes the property appraisal.
The amount of time you have for each period of time is part of your contract negotiation.We specify how long we’d like for each in your offer, the seller may counter, and in the end, we have an agreement on these terms, as well as all terms of the contract.
Each time period starts counting down at closing, using the Contract Ratification Date as day zero. As your REALTOR®, I help you to stay on top of these deadlines, as well as help your lender to stay on top of the ones he or she is responsible for. Working together as a team, we can be sure that your contract deadlines come and go smoothly and with very little stress!