Considerations when closing the real estate deal
Once the negotiations are over and the offer is accepted then there is a time frame in which to complete the documentation and other functions that needs to be performed by buyer and seller before the deal is closed. Buyer should make sure that all the purchase contracts and documents are created and approved by a qualified attorney.
Buyer, if he or she is financing the deal through an institutional lender will have to make the relevant application. The buyer should make sure that the purchase contract includes a mortgage contingency clause which makes the closing of the deal dependent on securing of a credit facility. Buyer should keep in mind that in fact under such a clause he or she is duty bound to try his or her best to secure such a loan.
Buyer should instruct his or her lawyer to include an inspection clause in the contract as well. This clause will allow the home buyer to use the services of qualified inspector to inspect the home to make sure that it is in good condition and is complying with the local housing regulations. It can even require that the seller make repairs up to a certain proportion of the transaction price, in case of inspector finding deficiencies. Proportion met in practice range about two to three percentage points of the price. Inspector will also furnish buyer and seller with a list of various disclosures that seller must make in accordance with the various municipal laws; Buyer should obtain them before closing.
A good contract will also require the seller to prove the ownership. Buyer should also call for title insurance. Title insurance provides security in case the seller does not have the authority to sell the title of the property. Title insuring company undertakes to make good any losses incurred due to such a situation.
Seller is usually obligated to execute the deed to the property by signing it as grantor of sale. Buyer should obtain the services of a surveyor to conduct a new survey of the property attached to the home and requires the seller to provide a copy of the old survey. Buyer should also insure the property through a homeowner’s insurance policy without losing any time.
Buyers can accomplish all this without much effort if they have properly prepared and planned the home purchase and obtained the services of qualified professionals. Finally the buyer should take the time to check the closing statement to ensure that it is free of any mistakes or omissions. It will contain all the details of the transaction costs among others. Buyer should also ensure that descriptions of the property in various documents are same. In most cases where the buyer has obtained financing through an institutional lender, the lender will take an active interest in closing details since it will affect their loan.
Once all the preliminary tasks are accomplished the closing will take place, which will include the actual transaction usually through a certified check, execution of the accompanying documents, and ending of the seller’s contract with the real estate agent.
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