Escrow Requirement
Inspections and Appraisals
Inspections must be conducted within the agreed upon timeframe specified in the effective contract to purchase. Most buyers will hire a licensed property inspector to perform an overall inspection of the property. Some buyers prefer to hire several different inspectors in an effort to obtain professional evaluations of specific areas of the property (eg. roof, HVAC, structure).
When an agreement is conditional upon financing, your property will be appraised by a licensed appraiser. This is done to determine the true value of the property and allow the lending institution to confirm their investment is accurate. If the property being sold is commercial, the lender may require the buyer to have a complete environmental audit performed and/or soil test.
Closing Agent
Either an attorney or the title company will be designated as the closing agent. It is their responsibility to examine and ensure a clear title to real estate being sold. After thoroughly researching the recorded history of your property, they will certify that your title is free and clear of encumbrances (eg. mortgages, leases, liens, or restrictions) by the date of closing. They will also certify that all new encumbrances are duly included in the title.
Contingencies
A contingency is a condition that must be met before a contract becomes legally binding. For example, a buyer will typically require that a contract be contingent on upon a satisfactory home inspection report from a licensed inspector.
Prior to completing the purchase of your property, the buyer will review every aspect of the property and satisfy any requirements outlined in the purchase agreement and any applicable amendments. This includes obtaining financing and insurance, reviewing all pertinent documents, and determining the condition of your property by conducting any inspections they deem necessary.
Depending on the outcome of these inspections, one of two things may happen. If all requirements are met and all inspections are satisfactory, the contingencies will be removed, bringing you one step closer to closing. If any documents or inspections are found to unsatisfactory, the buyer will request a renegotiation of the terms in the contract.
Should a renegotiation be necessary, our team of professionals will respond objectively and fairly to the buyer while acting in your best interest. We have extensive experience with all types of real estate transactions and guarantee our expertise and total commitment to every client, regardless of the situation.
Loan Approval
When selling your property, we recommend only working with buyers who can provide a lender’s pre-approval, approval letter, or written loan commitment. These are a better guarantee of loan approval than a simple pre-qualification from a lending institution or no documentation at all.