Tracking key dates in a real estate sales transaction is not only helpful to both parties, it is crucial in order to execute the purchase and sale. On this week’s post, we will cover the top 5 reasons you should track critical dates for key dates such as: effective date, contingencies, deposit dates, due diligence periods, inspection periods, title commitment dates, and closing dates.
Why do you need to track critical dates?
1. Avoid Defaulting on Contract Terms
Missing a critical deadline could have far-reaching implications including forfeiture of deposits and damages for non-performance.
2. Keep Both Parties on the Same Page
By developing a critical date checklist for each contract and sharing between the buyer and seller, you are ensuring that both parties are aware of key activity dates required for successful execution.
3. Stay Organized
Organization is crucial for transactions. Missing a deliverable by a key date could end up costing you big time.
4. Completion of Tasks
There is so much to accomplish compressed time frame. Due diligence tasks like surveys, environmental reports, title searches, financing, inspections, and zoning use confirmations can take weeks, sometimes months to complete. It is important for both parties to track deadlines to avoid missing key dates.
5. No Confusion
By knowing what is required from your party, you will have far less confusion as you begin to approach these due dates.
The clock is ticking starting on the effective date, and you do not want to miss your contractual obligations. To give you a start on tracking your next sale or purchase, I have included my key date tracking tool called the Critical Dates Checklist. This example is by no means comprehensive. Feel free to edit the list to include all of the key terms and dates that are relevant to your specific contract. Our team uses this format as a basis to track each transaction we manage to ensure that our clients stay ahead of their due dates and to ensure each task gets completed.
Click Here to Download for Free: Critical Dates Tool
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