Once an offer is accepted, the typical timeframe for closing is approximately six weeks, although this may vary depending on the conditions agreed upon between the buyer and seller.
Here’s a step-by-step guide to the transaction process from the seller’s perspective:
Step 1: Legal Representation
• The Vendor contacts their attorney and formally instructs them to act on their behalf.
• The Purchaser also contacts their attorney, who will represent them throughout the transaction.
Step 2: Financing & Deposit
• The Purchaser contacts their bank to secure mortgage approval.
• The 10% deposit is prepared and made available to be paid upon contract signing.
Step 3: Preparing the Sale & Purchase Agreement (SPA)
• The Listing Agent collects all necessary details, including:
o Full names and contact details of all parties
o Property information and agreed terms
• This information is forwarded to the Vendor’s attorney, who will draft the Sale and Purchase Agreement (SPA).
Step 4: Reviewing the SPA
• The Vendor’s attorney consults with the Vendor to ensure the SPA accurately reflects the agreed terms.
• The draft SPA is sent to the Purchaser’s attorney for review and consultation with their client.
• Any required amendments are negotiated and agreed upon by both parties through their respective legal counsel.
Step 5: Signing the Contract
• Once both parties are satisfied:
o The Purchaser signs the SPA and lodges the 10% deposit with the designated Stakeholder (usually one of the attorneys).
o The Vendor signs the SPA.
• At this point, the contract is legally binding, and the sale is officially in progress.
Step 6: Fulfilling Contract Conditions
• In the weeks that follow:
o The Purchaser’s attorney oversees satisfaction of purchase conditions (e.g., confirmation of financing), with updates communicated to the Vendor’s attorney.
o The Vendor completes any agreed obligations—such as boundary staking or securing vacant possession—prior to closing.
Step 7: Legal Searches
• The Purchaser’s attorney conducts the Conveyance and Planning Search, which typically takes a minimum of 28 days.
• This ensures there are no encumbrances or legal issues with the property title or zoning.
Step 8: Closing the Sale
• Once all conditions are satisfied, the sale closes on the date specified in the SPA.
• At closing:
o The Purchaser’s attorney transfers the remaining balance of the purchase price (minus the 10% deposit), along with any apportioned land tax and fees, via bank transfer to the Vendor’s attorney.
o The Vendor’s attorney disburses the funds and coordinates the final transfer of ownership and keys.
At Cranfields Property Bermuda Ltd., we are committed to ensuring a seamless and informed experience for every client. Our goal is to support you through each step of the sale with transparency, care, and expert guidance.
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This guide provides general information. Please consult your attorney for legal advice specific to your transaction.
