Getting Your Home Under Contract

 Getting Your Home Under Contract….

“The Valley of Flowers”

It’s exciting for you, and for Stuart and Sally, when we find the property of your dreams, and you decide to go to the next step in the transaction process, by having us write a Buy/Sell Agreement. But what happens next?

What follows is a guide to a typical real estate transaction once Stuart and Sally submit and negotiate a Buy/Sell Agreement and the Seller accepts:

• Since you, as the Buyer, are making a major investment, it’s vital that you are fully versed in exactly what you are purchasing and any potential problems, hindrances or restrictions. Stuart and Sally will carefully, and thoroughly, go over each item within the Buy/Sell Agreement prior to your signing the document. We will also fully explain any counter offer from the Seller.

Once you have a fully executed Buy/Sell Agreement, it is prudent to engage a lawyer to examine your documents. Within the Buy/Sell Agreement are any number of Contingencies and Provisions. Each one has a specific Release Date. Stuart and Sally will negotiate, within the contract, ample time for you to satisfy each provision within the contract. We will also help keep the process on track, supplying you with names of qualified specialists to help satisfy a provision.

Should there be a problem with the time frame, we are usually able to amend the Buy/Sell Agreement and secure an extension of time. However, it is best to always remember that in Real Estate Contracts, Time is of the Essence.

• As the Buyer, it is your responsibility to provide Earnest Money. The amount varies due to Selling Price and Market.

Your check for Earnest Money is usually made out to the Title Company that is designated by the Seller. Montana law stipulates that you can not have a valid contract unless earnest money is involved. You will usually be paid interest on your money while it sits in an escrow account prior to closing or to the date when contingencies are released. Your earnest money will be refunded to you should you fall out of contract due to contingencies or fault of the Seller.

• The Seller of the property is responsible for providing and paying for the Title Insurance. If you, as Buyer, are financing the property, you will be required by your lender to provide the lender Title Insurance. You will receive a Preliminary Title Commitment and generally have 10 working days to examine, and accept, the provisions of the insurance. Stuart and Sally recommend that you have your lawyer go over the Title Insurance.

• Financing of the transaction is the Buyer’s responsibility, including the Appraisal of the property; in Montana, the typical appraisal fees vary between $400 and $700.

The Buy/Sell Agreement will contain release dates for the financing. As buyer, you must perform all tasks within these dates or risk falling out of contract. If you do require financing, then you will need to work with a lender of your choice.

It is prudent to obtain a letter from a lender stating you are qualified to purchase a property within a specific price range before you begin viewing properties with Stuart and Sally. Having pre-approval strengthens your Buy/Sell offer for negotiations. Stuart and Sally are happy to provide you with the names of local lenders. Terms vary from lender to lender and it is wise to obtain quotes from more than one source.

Lenders require an appraisal prior to financing, and they order the appraisal to insure its accuracy. Appraisals in the Gallatin Valley can take 3 to 4 weeks. Stuart and Sally will help arrange a time for a reputable appraiser to view the property. Should the house not appraise for the contract amount, Stuart and Sally will help negotiate a change in the price.

• It is the Buyer’s responsibility to seek Home and Property Inspections. The cost of these inspections range from $500 to $750 for a high-end home; this is determined by the age of the home, square footage, and location. Inspection for the potential presence of radon gas, which we urge you to do, generally costs an additional $100.

It is vital that you engage a qualified Home Inspector. Stuart and Sally will provide you with names of reputable local inspectors, schedule the inspection, and will be present during the inspection (which can take between 4 to 7 hours). After the inspection, Stuart and Sally will go over the results with you and after this, present an Inspection Notice to the Seller and negotiate any repairs or provisions required from the Seller due to the Inspection Report. This may involve a price reduction or a requirement for repairs or mitigation.

• The Water and Mineral Rights on the sale property may require both legal advice and, potentially, specialists in such matters; these issues are also the Buyer’s Responsibility. Water and Mineral Rights in Montana can seem like a daunting labyrinth of legal records and laws. It is the responsibility of the Buyer to determine how important the role of Water and Mineral Rights are in the negotiations for a property and then to accurately determine what rights convey. Stuart and Sally will include in the Buy/Sell Agreement that all rights appurtenant to the property will convey with the property, however it will be up to you to determine what these rights include. The property may have a stream running through it, but that doesn’t mean – and this is all too often the case! – the owner of the property has any right whatsoever to take any water out of the stream.

Also, wells and pond construction are regulated by the DNRC and the State of Montana, and, in many cases, Homeowner Associations. You need to know what your options are in regards to water before you purchase the property.

Flood plains are another consideration in purchasing a property in the Gallatin Valley. There are 100 year and 500-year flood plain maps available. If you can see or hear water, you must be aware of your risk for flooding. Engaging a qualified Hydrologist can help determine the best site for a new home or the risk potential of the property.

• Many properties in the Bozeman and Gallatin Valley area are connected to active Homeowner Associations. Stuart and Sally will provide you with any and all known Covenants for the Homeowners Association associated with your property. You will need to consult with your attorney to determine any restrictions and regulations that affect your intended use of the property.

• The Buyer generally takes possession of the property when the Deed is recorded. This is the day of closing if it is early in the morning, or the following day when the signing is in the afternoon. Stuart and Sally will arrange a final walk-through of the property prior to Closing to insure that everything is in tip-top condition and you are closing on what you have agreed to purchase.

• You will need to arrange to have a mover scheduled well before closing date as qualified movers are booked well in advance. Stuart and Sally will provide you with names of the most qualified movers. You will also need to arrange to have utilities and phone connected in your name.

• The Buyer’s responsibilities at Closing include any loan fees, as applicable. The proration of taxes and any special Assessments that are not the Seller’s Responsibility. Other responsibilities include insurance required by the Lender.

Closing Costs, which are generally split between Buyer and Seller, are generally under $300, or a $150 cost to the Buyer.

You will be provided with a closing statement prior to closing. The closing itself is a simple process of signing documents, which can take place in the Title Company’s office, or by registered mail with documents being notarized. You will be able, up until 10 or so days prior to closing, to determine which name or entity you wish to have the property titled under.

You will arrange with your lender or banker to have a certified check delivered to the Title company or the monies wired to the Title Company in the amount of the closing by the date of closing.

Congratulations! You are now a Gallatin Valley property owner.

BOZEMAN IS RENOWNED FOR ITS OUTDOOR ACTIVITIES

 

We are blessed with a multitude of year round outdoor recreation opportunities in the Gallatin Valley:

• Fly Fishing
• Rafting
• National Forest
• National Parks
• Hiking Trails
• Mountain Biking
• Cross Country Skiing
• Downhill Skiing
• Snowshoeing
• And more!

There are no lack of reasons to get you outside and in the fun!

Please visit our Interactive Map and click on, Skiing, Rivers, National Parks, and Mountains to learn more about our fantastic outdoors!

Legal Matters

The state of Montana is known as Big Sky Country, the Treasure State and “The Last Best Place” To many, it’s also the last vestige of America’s wild frontier. The distinctive qualities of this state are not limited to its physical landscape, however. Stuart and Sally are well aware that Montana real estate laws are, many times, unique to Montana. Just because one of our clients from Georgia or Texas happens to be a real estate maven in their own state, they may not be prepared for the particular and sometimes complicated nuances of Montana Real Estate law. This is why we always recommend that our clients obtain local legal counsel to insure there are no unexpected surprises in any real estate transaction.

Gallatin County and the Bozeman are undergoing dramatic growth. This new expansion in the community is accompanied by continual changes in zoning and land use laws. Many areas are without zoning regulations, while other areas have highly restrictive covenants in place. For property buyers, there may be utility issues, density matters, and a myriad of other details that could throw the proverbial monkey wrench into a new property owner’s desire to utilize his or her land.

Caveat emptor – Buyers Beware – is a phrase most new property owners dread hearing, particularly when discovering that dividing large tracts of land can be problematic, and in some cases, impossible. Water rights, floodplains, and even mineral rights are all considerations and an important part of the due diligence prior to purchasing a property in Montana

Stuart and Sally’s knowledge and familiarity with the Bozeman and Gallatin Valley community will help us guide our clients through a number of these processes, answering questions, resolving issues before they become problems, and alleviating the stress of maneuvering through the laws and restrictions of a new region.

We are well-versed on local real estate and land-use issues and literally know the lay of the land. Our expertise will help insure that you are fully aware of any potential problems prior to making any offer on a property. With the full backing of the ERA Landmark office - Stuart and Sally have a fine-tuned awareness of the evolving landscape of Gallatin Valley regulations and potential pitfalls for land owners.

However, it is both wise and prudent to consult with a local real estate lawyer. We will provide you with a list of Bozeman-based lawyers who can explain and clarify the procedures in dealing with the city or county on a variety of issues that can impact a property transaction, ranging from altering zoning to understanding covenants and regulations. Legal counsel may also bring up other areas for new property owners to consider prior to purchase.

Stuart and Sally are committed to see that every legal detail of your transaction is addressed in a thorough and profession manner and with your best interests in mind.

Let’s Connect!

Call us at: 406-556-5013
e-mail: contact@stuartandsally.com

Ted Turner puts his money where his heart is…

By SCOTT McMILLION Chronicle Staff Writer

GALLATIN GATEWAY – Ted Turner says things are getting better in the world, but they aren’t good enough yet. So he’s aiming to fix a few.

ERIK PETERSEN/CHRONICLE Ted Turner looks over some of the vast expanse of land he owns at Spanish Creek on which he raises bison for his newest venture, his chain of 55 Ted’s Montana Grill restaurants throughout the country. Compared to a decade ago, fewer people live in utter poverty.

He wants to cut that number ever more. Free trade among nations will help do that, he says, so he’s trying to get his fellow Democrats to understand that.

And while he sees global warming as a growing risk, more people are aware of it, partly because of the environmental groups he funds.

“You’re talking about a lot of people who are upset about it,” Turner said in a recent interview at his Flying D Ranch. “And I think we’re going to make them take a swing and try to do something about it.”

 

Read More Here…

1031 Exchange

When buying or selling a luxury Montana property, serious consideration should be given to whether you qualify for a 1031 Exchange, which is covered in Section 1031 of the Internal Revenue Code.

Simply put, a 1031 Exchange allows the owner of an investment property to sell that property and buy another “like-kind” property, thus deferring the payment of state and federal capital gains taxes. Taxes are only paid when a final property transaction occurs and the seller cashes out, which allows you, the investor, to build on your initial investment and increase its value without paying the taxes during on-going transactions. A number of properties qualify as long as they are investment properties and not your primary residence.

The IRS Section 1031 states: “No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held either for productive use in a trade or business or for investment.”

If you are interested in a 1031 Exchange, Stuart and Sally will search for the ideal property that legally qualifies for your exchange. We will write into the Buy-Sell contract that you are going to be engaging in a 1031 Exchange. There will be an additional form, specifically for 1031 Exchanges, which we will include in the contract and have you sign. At this point we will provide you with the names of local, qualified 1031 specialists to insure your exchange goes as smoothly and professionally as possible. Our affiliation with ERA Landmark – Bozeman’s Number One Real Estate Company – provides us with access to a full staff of experts well-versed in all the paperwork and legalities involved in 1031 Exchanges.

As your real estate specialists, Stuart and Sally will provide you with the security and sense of well-being that comes from knowing that we are closely monitoring every aspect of your transaction to make certain that no detail is overlooked. And, naturally, we are always vigilant when it comes to protecting both you and your confidentiality.

Let’s Connect!

Call us at: 406-556-5013
e-mail: contact@stuartandsally.com

Ladigo Ranch – The Essence of Montana Lifestyle