Transaction practice varies substantially by state — whether an attorney or an escrow company runs the closing, whether the contract is a standard form, how extensive seller disclosure obligations are, and when deposits become non-refundable. Ask local representation what surprises out-of-state buyers before writing an offer.
The broad strokes travel. The specifics of how a transaction is conducted differ enough that assumptions carried across a state line cause real problems.
Buyers arriving from another state consistently underestimate how much varies. Not the broad strokes — those travel. The specifics of how a transaction is conducted differ enough that assumptions carried across a state line cause real problems.
The first and most consequential difference.
Some states are attorney states, where a lawyer is required or customary on both sides and drafts or reviews the contract. Others are escrow states, where a neutral escrow or title company handles the transaction and attorneys appear only if a party engages one.
Buyers from an attorney state frequently arrive expecting legal representation as standard and are surprised to find nobody providing it. Buyers from an escrow state sometimes arrive in an attorney state without counsel and discover they needed it a week ago.
Establish which you are in before you write an offer, and engage an attorney regardless where the transaction is complex.
In many markets the contract is a standard form promulgated by a state association, filled in rather than drafted. In others it is genuinely drafted by attorneys each time.
The practical consequence is how much is negotiable and how quickly. A form contract moves fast and constrains creativity. A drafted contract is slower and more flexible.
Read whichever you are given properly. Standard does not mean it says what you assume.
Some states impose extensive statutory disclosure obligations on sellers, with detailed forms covering condition, history and known defects. Others operate closer to buyer beware, with limited obligations beyond not actively concealing.
A buyer accustomed to receiving a thick disclosure package will find its absence alarming and should adjust their own diligence upward accordingly. The protection you are used to may simply not exist here.
Deposit amounts, when they become non-refundable, who holds them and what happens in a dispute all vary.
In some markets a modest deposit is normal and refundable through several contingencies. In others a substantial deposit goes hard early and is genuinely at risk.
Never assume the practice you know applies. This is the question where an incorrect assumption is most directly expensive.
Transfer taxes exist in some states and not others, and where they exist the rate and the party responsible both vary. Title insurance may be customarily paid by buyer or seller depending on local convention. Recording fees, survey costs and inspection expectations all differ.
Ask for an estimated closing statement early. Buyers routinely budget the purchase price and the loan and are surprised by the rest.
Contingency periods, closing windows and what constitutes reasonable notice are local habits rather than universal standards.
A thirty-day close is routine in some markets and aggressive in others. An inspection period that seems generous where you come from may be tight for a property of this type here.
Ask what is normal locally rather than proposing what was normal at home. Proposing unusual terms marks you as an outsider and can cost you a competitive situation.
Engage local representation and ask them directly what surprises out-of-state buyers here. Every experienced local agent has a ready answer, and it is usually the exact thing you were about to assume.
Where the transaction is significant, engage a local attorney even in a market where it is not customary. The cost is small against the value of someone who knows what normal looks like.
Who runs the closing. Attorney states expect a lawyer on each side; escrow states use a neutral escrow or title company with attorneys only if engaged. Buyers frequently arrive expecting the practice they know.
It depends entirely on the state. Some impose extensive statutory disclosure obligations; others operate closer to buyer beware. Where the protection you are used to does not exist, raise your own diligence accordingly.
That varies too. In some markets a modest deposit stays refundable through several contingencies; in others a substantial deposit goes hard early. This is where an incorrect assumption is most directly expensive.
Convention varies. Transfer taxes exist in some states and not others, and title insurance may customarily be paid by either party. Ask for an estimated closing statement early rather than budgeting only the price and the loan.
No. Contingency periods and closing windows are local conventions. Proposing unusual terms marks you as an outsider and can cost you a competitive situation.
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