Escrow, Inspections, & Appraisal
5.1 Title Company and Escrow Holder. You will need to
select a title company 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 limit various activities from building to parking
restrictions. There may be recorded easements and encroachments, where
others have limited rights to use your property.
5.2 How to Hold Title. You may wish to consult with an
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.
5.3 Inspections. Once your offer is accepted by the
seller, you'll need to have professional inspectors evaluate your home's
major systems. Your agent may recommend other inspections, such as roof,
chimney/fireplace, property boundary survey, well, septic, pool/spa,
arborist or mold.
5.4 Appraisal and Lending. Keep in close communication
with your lender, 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 to be sure the
loan will go through smoothly and on time.