Closing a real estate transaction can
be a complicated process. There are a variety of laws that govern the
various aspects of transferring possession of a property from one
person to another. In most cases, the real estate agent provides the
needed assistance between the seller and the parties involved in the
transfer of title (escrow company, title company, loan officers,
etc.). But in transactions that don't involve real estate agents, the
services of a real estate attorney or a title company can be of great
help. They have the experience needed to keep you out of trouble and,
above all, ensure that title to the property is transferred from the
seller to the buyer.
When dealing with a person that is selling his own property, you will
want to find out who will be responsible for handling the
documentation. If they have not identified anyone, consider
suggesting that they seek the services of a local real estate
attorney, title company, or our help.
After your offer has been accepted and you have been
approved for
financing, there are several documents that we will ask to be prepared.
The seller will most typically handle this with our loan agent. The
loan agent will need the following:
-
Purchase agreement and applicable
attachments such as counter offers
-
Mortgage payoff information
-
Documentation proving that the
title is clear of back taxes, liens, etc.
-
Appraisal report
-
Termite inspection report.
Once this documentation has been
provided to us, our loan agents will prepare the closing documents that
will need to be signed by both the seller and the buyer.
Before actually signing the loan documents, the buyer has the right to do a walk-through
inspection of the home. The walk-through allows the buyer to make
sure that nothing has changed since the original offer was made and
accepted. If you are satisfied, you might be requested to indicate in
writing that you are satisfied with the condition of the home. If any
problems are identified that were not identified formerly, now is the
time to speak up.
When the deal actually closes, the seller will meet with the loan
agent once again. The seller might be requested to provide proof that
the utilities (gas, water, electricity) have all been paid.
Both you and the seller will need to sign a series of documents to
seal the transaction. If you have followed all of the steps, closing
will only take a few minutes.
All that will be left is to obtain the key, and then congratulate
yourself on the purchase of your new home.
