Today, we are going to talk about the Objection and Cure Period. This is part of our ten part series about selling your property and various considerations during the process. Previously, we covered Due Diligence and preparation of your documents so you have questions, please call and we can direct you to that blog.
During the time of the sale, the Buyer might find that there are certain items that they object to or that their lender needs to have addressed before the closing. Let us talk about the process and 4 things to consider.
What is the Objection and Cure Period?
The Objection and Cure Period is a designated timeframe within the Purchase and Sale Agreement that allows the buyer to raise any concerns or identify issues with the property. This period typically occurs after inspections and due diligence have been completed by the buyer.
Why is this Period Important?
This period provides an opportunity for both buyer and seller to address potential roadblocks before reaching the closing stage. It allows the buyer to voice any concerns or request repairs, while giving the seller a chance to respond and potentially rectify the situation.
4 Key Considerations During the Objection and Cure Period
1. Buyer’s Deadline to Notify
The Purchase and Sale Agreement clearly outlines the timeframe within which the buyer must notify the seller of any objections or concerns. This deadline is crucial, and the buyer must adhere to it to ensure their objections are considered.
2. Seller’s Obligation to Respond or Cure
Once notified of objections, the seller has a designated timeframe to respond. This response can take two main paths:
- Cure: The seller agrees to address the buyer’s concerns by repairing the issue, potentially offering financial concessions, or finding a mutually agreeable solution. For example, if the buyer raises an objection about a leaky roof, the seller might agree to fix the roof entirely, split the repair cost, or offer a price reduction to account for the needed repair.
- Not Cure: The seller may choose not to address the objection raised by the buyer. This decision should be made carefully and with the guidance of a real estate professional. It’s important to understand the potential impact on the sale, as the buyer might walk away or renegotiate the terms.
3. Termination of Contract
If the buyer and seller cannot reach a satisfactory agreement regarding the objections, the contract may be terminated. However, this should be a last resort, and both parties should exhaust all negotiation options before reaching this point. If contract termination is the chosen path, it’s crucial to work with your real estate broker to ensure all necessary paperwork and forms are completed correctly.
4. Silence May Be Approval
This might seem obvious, but it’s important to remember that a seller’s silence during the Objection and Cure Period can be interpreted as consent to the buyer’s objections. To avoid any misunderstandings, always provide a written response, clearly stating whether you accept or reject the buyer’s objections and proposed solutions.
Remember: Clear communication and timely responses are key during the Objection and Cure Period. Working collaboratively with your real estate agent can help navigate this stage smoothly and ensure a successful closing for both buyer and seller.
Have Questions?
Cynthia Daughtrey at 3D Real Estate is here to help! Call 303-548-9659 for more information.
