Buying Process
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Inspections & Appraisal:
Escrow: when an earnest money deposit and purchase offer is accepted by the seller. Escrow ends when you become the official new owner, registered in the county records.
Title Company and Escrow Holder-
We can help you select a title company and escrow holder (often the same company), which is responsible for serving as a neutral third party that holds all instruments necessary to the sale, including funds and deed with instructions as to their use. The title company provides a critical service by researching the complete recorded history of this property, to insure that the title is free and clear of encumbrances (outstanding loans, title liens or clouds) by the date of closing and that all new encumbrances are properly added to the title.
You will receive what’s known as a preliminary report that will show current encumbrances and easements. For example, some properties are subject to CC&Rs (covenants, conditions and restrictions) which may limit various activities from building to parking restrictions. There may be recorded easements and encroachments, where others have limited rights to use your property. We will always explain the title report to you in detail to ensure you completely understand any CCRs and their impact on your purchase.
How to Hold Title-
There are many ways to own property, each having its own inherent legal, estate, and tax implications, specifically regarding selling, transferring, or disposition upon death. We advise you to consult with an attorney or your tax advisor to ensure you select the best way to hold title.
Inspections-
Once the seller accepts your offer, we will make a selection from our pool of professional inspectors to evaluate your property’s major systems and arrange the appropriate appointments. Plan on attending all inspections with your agent and be confident that you can ask any question of the inspector or your agent. During inspections you can learn a considerable amount of information regarding how your new property functions as well as any flaws or issues that need to be addressed.
Your agent may recommend other inspections, to determine the soundness of other systems like roof, chimney/fireplace, property boundary survey, well, septic, pool/spa, arborist or mold. Knowledge is the key to securing the best possible deal for you—so set out to acquire as much knowledge as you can.
Appraisal and the Loan Process-
It’s wise to keep an open line of near-constant communication with your lender, who will let you know when additional documents are necessary for approval and funding. The lender will often send an appraiser out to the property; be ready to pay a fee for this inspection.
Appraisers are specialists in evaluating properties, based on a combination of square footage measurements, building costs, and recent sales of comparable properties, which ensure you, are not paying too much for the property. Ask for a copy of your appraisal and within two weeks of closing, confirm with your lender that the loan requirements have been fulfilled.
