Real Estate Closing
Depending upon which state you’re currently located in, the title company, closing attorney or closing agent will be selected to handle the closing process. The first step in the closing process for the buyer would be to deposit a check in an account that secures the buyer’s offer. The deposit is also referred to as an “earnest money deposit”.
The next step to closing on a property would be to do a title check. The main purpose would be to obtain a preliminary title report. A title report is to prove that the seller is the legal owner of the property and that there are no unsettled liens or claims against the property including taxes or assessments.
It is the buyers responsibility to obtain homeowners insurance. Homeowners insurance provides coverage in the event of damage or theft to ones property, as well as liability for injuries which might occur to other people on your property. The coverage also includes damages caused by pets or major disasters. Not only is it a necessary step to protect yourself and your property, lenders require the buyer to have secure homeowners insurance.
Sellers are then obligated to disclose any information or facts pertaining to property defects or lawsuits regarding the property. It is the buyers’ responsibility to arrange any inspections including pests (termites) and general property inspections. Once the disclosure and inspections are completed it is up to the agent to remove any contingencies from the sales contract.
Then the appraisal of the property will be arranged by the lender. An appraisal report consists of physical characteristics of the property and property values in that area that are similar to the sellers property, to have a better understanding of the value of the property.
The agent will then issue an order to the sellers existing lender to request a demand for payment in full and all re-conveyances to be released. In order to get ready for the closing appointment the buyer must obtain a cashier check for the amount due upon closing. The exact amount can be provided by ones agent.
During the closing appointment all of the loan and title papers will be signed by the buyer. Depending upon which state you reside in the seller would have already signed or will sign the papers during this appointment.
Last but not least, the final step is for the county to record all documents pertaining to the closing and a formal change of possession must take place. During this time agents will arrange keys and other co-agents to be transferred and the “For Sale” sign will be removed. Then your home will be ready to move in.