The Process

Initial Agreement and Deposit

The purchase agreement is a legal arrangement between the buyer and seller. Here are some tips to keep things moving smoothly:

• Keep Written Records: Track everything, including verbal agreements, counter-offers, and addendums. We can help draft these records and provide copies to all parties.
• Follow the Schedule: There’s a timeline for each stage of the contract. Staying on schedule is key to a successful closing.

The Closing Agent

Once the agreement is finalized, a title company or attorney acts as the closing agent, holding your deposit in escrow. The escrow agent holds, receives, and distributes funds associated with the transaction. They will research the property title to ensure it’s free of encumbrances and prepare it for transfer. All contingencies in the purchase agreement must be satisfied before closing.

How to Hold Title

Different ways of holding title can impact ownership transfer, financing, and taxes. We recommend consulting an attorney or tax advisor for guidance, and we’re happy to connect you with trusted experts in the area.

Inspections

You’ll schedule a licensed inspector to assess the property within the agreed time frame. Inspectors will report on the property’s condition, and if issues arise, you may request a renegotiation of contract terms. Once inspections are satisfactory, contingencies are removed.

Appraisals and Lending

Stay in touch with your lender to ensure all required documents are submitted for loan approval. If financing is conditional, an appraiser will evaluate the property to confirm its value. Verify with your lender two weeks before closing that your loan is on track.

Association Approval

If an association’s approval is required, make sure to gather and submit the necessary documents within the agreed timeline. Upon acceptance, your closing agent will obtain the original approval letter for recording with the deed.

Property Insurance

Most lenders require property insurance. Depending on your plans, you’ll need either homeowners insurance (if you plan to live in the home) or landlord insurance (for rental properties).

Moving In

You’re almost ready to take possession! A few final steps ensure a smooth transition.

Final Walk-Through Inspection

Inspect the property one last time to confirm that all contingencies are met and the seller’s belongings are removed. This inspection usually happens the day before or on the day of closing.

Closing

Once you’re satisfied, it’s time to close. You, the seller, and the closing agent will review and sign the settlement agreement, verify funds, and finalize all documents. You can bring a certified check or wire funds directly to escrow. Once the paperwork is complete, the deed is recorded, and you officially own your property!