When the Inspection Period ends, the Resolution Period begins whereby the Buyer and Seller must agree as to how proceed forward based on the Buyer’s Repair Proposal (typically). According to a survey from the National Association of REALTORS®, only 5% of home sales contracts were terminated in early 2024 with failed inspection contingencies contributing to this figure.
Calculating the start date of the Resolution Period is crucial as to know how many days you have to negotiate until you reach the Resolution Period Deadline, which SmoothTC calculates on behalf of its agents.
What is the Resolution Period Deadline?
The Resolution Period Deadline is the point by which the Buyer and Seller must come to a written agreement on how to address any outstanding repairs. Typically, this is done through a fully executed Repair Amendment, but it can also be resolved if the Buyer delivers a notification to accept the property as-is or terminate the Contract. The Resolution Period can be extended via an Amendment if necessary.
How Do You Calculate the Start Date of the Resolution Period?
The start date of the Resolution Period is when the Buyer delivers the written notification to the Seller (which ends the Inspection Period), typically in the form of a Repair Proposal.
What Happens if the Resolution Deadline is Missed per the Contract?
Per the contract, if one of the following actions is not completed, the Agreement will terminate, and the Earnest Money will be returned to the Buyer:
The Seller and Buyer enter into a Repair/Replacement Amendment or a written equivalent; OR
The Buyer provides written notice to the Seller that the Buyer is accepting the Property “AS-IS”; OR
The Seller and Buyer agree to a written amendment extending the Resolution Period.
Whose Obligation is it to Ensure This is Done by the Requisite Time?
Both parties share the responsibility of meeting this deadline.
How SmoothTC Makes the Resolution Period Easier for Agents:
Navigating deadlines can be challenging, especially when managing other responsibilities. Here’s how SmoothTC assists:
Calculates the Resolution Period Deadline: When the Buyer’s Agent sends the Repair Proposal to the Seller, SmoothTC tracks the days contractually agreed upon days to calculate the Resolution Period Deadline.
Sends SMS & Email Reminders: SmoothTC provides SMS and email reminders for the Resolution Period Deadline (1 day prior and day-of).
Creates Calendar Invitations: SmoothTC sends a calendar invitation to the agent to ensure that this deadline is not missed.
Prepares Forms: Agents can quickly submit content from their Agent Launchpad for swift signature collection.
Avoid Troublesome Pitfalls
Here are some potential pitfalls we help you avoid:
Incorrect Computation: The Resolution Period starts when the Buyer’s Agent delivers the written instrument to the Seller. The day of delivery counts, regardless of whether it’s before the number of days contractually specified for the Inspection Period.
Performance Dates. You must also calculate the next business day if the Resolution Period Deadline falls on a weekend or a federal holiday.
The Bigger Picture: Supporting Your Clients and Your Business
SmoothTC expertly calculates the Resolution Period Deadline, allowing you to focus on providing top-notch negotiation services to your clients. Our support not only simplifies your workload but also adds professionalism and reliability to your business. Handle more clients with SmoothTC's help without a worry!
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