Escrow, Inspections and Appraisal
Escrow Holder and Title Company
Escrow is the process that starts when your purchase or counter offer is accepted by the seller. Escrow ends when you become the new legally recorded owner of the property.
Traditionally, the seller selects a title company and escrow holder, which acts as a neutral third party holding all instruments necessary to the sale, including funds and deed. The title company will research the complete recorded history of the property to insure that the title is free and clear of encumbrances by the date of closing and that all new encumbrances are properly added to the title. Some properties are subject to restrictions, which may limit various activities from building to parking. There may also be recorded easements and encroachments, where others have limited rights to use your property.
Normally the home purchase deposit check is provided to the escrow company within 3 days after acceptance.
How to Hold Title
You may wish to consult with a real estate attorney or tax advisor on the best way to hold title. Different methods of holding title have different legal, estate and tax implications, especially when selling or upon death of the title holder.
Inspections & Disclosures
Once your offer is accepted by the seller, you’ll normally have seventeen days to complete all your inspections, and review disclosures and reports prior to removing your purchase contingencies. During this time, you will need to have professional inspectors evaluate your home and it’s major areas including items such as the roof, chimney/fireplace, property boundary survey, well, septic, pool/spa, foundation, arborist and/or mold. Inspectors can be found at www. creia .org
Normally after all the inspections are completed and just before purchase contingencies are removed by the buyer, the buyer will submit a list of requested repairs to the seller. This can sometimes be a stressful activity and is another key reason why an experienced agent with good negotiation skills and a proven track record is essential.
Appraisal and Lending
Keep in close communication with your lender or mortgage broker, who will let you know when additional documents are needed to approve your loan application and fund your loan. The lender will often send an appraiser out to the property and you may pay a fee for this service. Appraisers are specialists in determining the value of properties, based on a combination of square footage measurements, building costs, and recent sales of comparable properties. When you are within two weeks of closing, double check with your lender or mortgage broker to be sure the loan will go through smoothly and on time.
For more information and for any additional questions, please feel free to contact me at any time.
