5.1 The Title Company. The buyer selects a title
company, whose job it is to examine and insure title to real
estate. After researching the complete recorded history of your
property, they'll certify that 1) your title is free and clear of
encumbrances (eg. mortgages, leases, or restrictions) by the date
of closing, and 2) all new encumbrances are duly included in the
title. They'll draw up a preliminary report at the end of the
process, which your listing agent will go over with you in detail.
5.2 Contingencies. A contingency is a condition
that must be met before a contract becomes legally binding. For
instance, a home buyer will usually include a contingency stating
that their contract is binding only when there is a satisfactory
home inspection report from a qualified inspector and generally
allows 10 days for that inspection to take place.
Before completing his or her purchase of your property, the home
buyer goes over every aspect of the property, as provided for by
purchase agreements. These include:
Obtaining financing and insurance
Reviewing all pertinent documents,
such as preliminary title reports and disclosure documents
Inspecting the property. The buyer has
the right to determine the condition of your property by
subjecting it to a wide range of inspections, such as roof,
termite/pest, chimney/fireplace, property boundary survey, well,
septic, pool/spa, arborist or mold.
Depending on the outcome of these inspections, one of two things
Either each milestone is successfully
closed and the contingencies will be removed, bringing you one step
closer to the close, or
The buyer, after reviewing the
property and the papers, requests a renegotiation of the terms
of contract (usually the price).
5.3 Loan Approval and Appraisal. We suggest that
you accept buyers who have a lender's pre-approval letter, which
is a better guarantee of loan approval than a pre-qualification.
Expect an appraiser from the lender's company to review your
property and verify that the sales price is appropriate.
5.4 Ready To Go? Don't pack your bags just yet.
Something unexpected might happen - a buyer's offer fails to push
through, or new buyers come by to visit right when your house is in
chaos. There's a proper time to start preparations for moving, and
given our previous experience with these transactions, we'll help
you determine when that time will be.