Your offer has been accepted, the purchase and sale contract has been signed, and the closing date is on the calendar. Congratulations! But what happens next?

Many buyers and sellers assume the hard part is over once the contract is signed. In reality, some of the most important work is just beginning. During the weeks leading up to closing, buyers, sellers, lenders, Realtors®, and the closing attorneys all work together to make sure the transaction stays on schedule.

At Peet Law Group, we help buyers, sellers, and lenders throughout Vermont navigate this process every day. Understanding what happens between signing the purchase contract and closing can help reduce stress, avoid delays, and keep your transaction moving smoothly.

Before the Contract Is Signed

The process actually begins before the purchase and sale contract is signed.

If possible, buyers and sellers should have an experienced Vermont real estate attorney review the purchase and sale contract before signing it or before any attorney review contingency expires.

An attorney can:

• Explain the legal terms of the agreement.
• Recommend revisions to better protect your interests.
• Identify potential legal concerns.
• Review inspection, financing, appraisal, and title provisions.
• Coordinate suggested changes with your Realtor® or the other party's attorney.

A well-written contract helps prevent surprises later.

Step 1: The Offer Is Accepted

Once the seller accepts the buyer's offer before the offer expiration deadline, both parties have a binding agreement.

The contract establishes important deadlines, including:

• Earnest money deposit.
• Attorney review (if applicable).
• Home inspections.
• Mortgage application.
• Appraisal contingency.
• Financing commitment.
• Closing date.
• Possession date, if different from closing.

Missing one of these deadlines can affect the transaction, so it is important to stay organized.

Step 2: The Buyer Applies for the Mortgage

If financing is involved, the buyer should promptly complete the mortgage application and provide all requested documentation.

The lender will typically request:

• Income verification.
• Tax returns.
• Bank statements.
• Employment information.
• Asset documentation.
• Credit information.

Responding quickly helps avoid unnecessary delays.

What the Buyer Should Be Doing

• Submit requested documents promptly.
• Avoid changing jobs.
• Avoid making large purchases.
• Avoid opening new credit accounts.
• Keep sufficient funds available for closing.

Even purchasing a new vehicle or opening a credit card before closing can affect loan approval.

Step 3: Home Inspections

Most buyers schedule inspections shortly after the contract is signed.

Depending on the property, inspections may include:

• General home inspection.
• Radon testing.
• Water quality testing.
• Septic inspection.
• Pest inspection.
• Other specialized inspections.

If significant issues are discovered, the parties may negotiate repairs, credits, or other solutions before proceeding.

What Can Go Wrong?

A major structural issue or unexpected repair may require additional negotiations or prompt a termination of the transaction if not addressed promptly.

Step 4: The Appraisal

If the buyer is obtaining financing, the lender usually orders an appraisal.

The purpose of the appraisal is to determine whether the property's market value supports the purchase price.

If the appraised value meets or exceeds the purchase price, the loan process generally continues.

If the appraisal comes in below the purchase price, the parties may:

• Renegotiate the purchase price.
• Increase the buyer's down payment.
• Challenge the appraisal through the lender.
• Reach another acceptable solution.

Many contracts also contain an appraisal contingency with its own deadline.

What Can Go Wrong?

A low appraisal is one of the more common reasons transactions require additional negotiation or termination.

Step 5: The Mortgage Moves Through Underwriting

While inspections and the appraisal are taking place, the lender continues processing the loan.

The underwriting process includes reviewing:

• Credit.
• Income.
• Employment.
• Assets.
• Appraisal.
• Property information.
• Title requirements.

The lender may request additional documentation before issuing a loan commitment.

Step 6: Peet Law Group Conducts the Title Search

One of the most important parts of the transaction occurs behind the scenes.

Unlike some firms that outsource title searches, Peet Law Group conducts its own title searches.

By examining the land records ourselves, we become familiar with the property's ownership history and can identify issues that may affect ownership or title insurance.

The title search may reveal:

• Existing mortgages.
• Easements.
• Rights-of-way.
• Judgments.
• Tax liens.
• Probate issues.
• Boundary concerns.
• Restrictive covenants.
• Other matters affecting title.

If issues are discovered, we work with the seller's attorney to resolve them whenever possible before closing.

Step 7: Resolving Title Issues

Most title issues can be resolved before closing if they are identified early.

Depending on the situation, resolving a title issue may involve:

• Obtaining mortgage discharges.
• Recording corrective documents.
• Clearing liens.
• Resolving probate matters.
• Correcting execution or recording errors.
• Working with municipalities or lenders.

Resolving these issues early helps prevent last-minute surprises.

What Can Go Wrong?

An old unreleased mortgage, missing probate proceeding, or recording error may require additional legal work before closing can occur.

Step 8: The Seller Prepares for Closing

While the buyer is completing inspections and financing, the seller also has important responsibilities.

The seller should:

• Cooperate in resolving title issues.
• Provide any requested information.
• Arrange for moving.
• Coordinate utility transfers.
• Complete agreed-upon repairs.
• Maintain the property until closing.

The seller's attorney prepares important closing documents, including:

• The deed.
• Vermont Property Transfer Tax Return.
• Required seller certifications and disclosures.
• Payoff information for existing mortgages when applicable.

Step 9: Closing Preparation

As closing approaches, everyone begins coordinating the final details.

The Buyer

• Obtains homeowner's insurance.
• Reviews the Closing Disclosure.
• Arranges certified funds or wire transfers if needed.
• Schedules the final walk-through.

The Seller

• Completes moving arrangements.
• Confirms mortgage payoff information.
• Signs required closing documents if necessary.

The Lender

• Issues the final loan approval.
• Prepares loan documents.
• Sends closing instructions.

Peet Law Group

Behind the scenes, our office is working to:

• Review lender closing instructions.
• Coordinate with buyers, sellers, Realtors®, and lenders.
• Finalize title work.
• Prepare closing documents.
• Calculate prorations and closing figures.
• Prepare settlement statements.
• Coordinate title insurance.
• Schedule and conduct the closing.

Step 10: The Final Walk-Through

Shortly before closing, buyers usually complete a final walk-through.

This is the buyer's opportunity to verify that:

• The property is in substantially the agreed-upon condition.
• Negotiated repairs have been completed.
• Included personal property remains.
• No unexpected damage has occurred.

Step 11: Closing Day

Closing day is when all of the preparation comes together.

Documents are signed, funds are transferred, and ownership changes hands.

Depending on the transaction, buyers will sign:

• Mortgage documents.
• Promissory note.
• Closing disclosures.
• Title insurance documents.
• Various lender forms.

Sellers sign documents including:

• The deed.
• Affidavits and certifications.
• Other documents required to complete the sale.

Once all requirements have been satisfied, funds are disbursed in accordance with the closing arrangements, and the deed and mortgage are submitted for recording.

After Closing

Although the closing is complete, additional work still takes place.

Peet Law Group continues working to:

• Record the deed and mortgage.
• Conduct the post-closing title update.
• Issue the owner's title insurance policy.
• Issue the lender's title insurance policy.
• Confirm the transaction has been properly completed.
• Deliver final documents as needed.

Common Reasons Closings Are Delayed

Most Vermont closings occur on schedule, but delays can happen.

Some common reasons include:

• Missing lender documentation.
• Low appraisal.
• Title issues.
• Inspection disputes.
• Incomplete repairs.
• Delays obtaining homeowner's insurance.
• Last-minute credit changes by the buyer.
• Problems with wire transfers.
• Unresolved mortgage payoff issues.

Planning ahead and responding quickly to requests can help keep the transaction on track.

Why Hiring a Vermont Real Estate Attorney Early Matters

Many legal issues are much easier to address early in the transaction than just before closing.

Having an attorney involved before signing the contract, or before an attorney review contingency expires, allows potential issues to be identified before they become expensive or time-consuming problems.

An experienced Vermont real estate attorney can help protect your interests throughout the transaction, not just at the closing table.

Why Buyers and Sellers Choose Peet Law Group

Buying or selling real estate is one of the largest financial transactions most people will ever make. At Peet Law Group, we work to make the process as smooth and efficient as possible.

Our attorneys represent buyers, sellers, and lenders throughout Vermont. We conduct our own in-house title searches, coordinate closely with Realtors® and lenders, work proactively with opposing counsel to resolve title issues, prepare the legal documents necessary for closing, issue title insurance, and guide our clients through every step of the transaction.

Whether you are purchasing your first home, selling a longtime residence, refinancing, or buying investment property, our goal is to identify potential issues early, keep your closing on schedule, and help you complete your transaction with confidence.