Escrow, Inspections and Appraisal

The title company. The contract will stipulate the party that will choose the title company. After researching the complete recorded history of your property the title company will certify that; 1) your title will be free and clear of encumbrances (i.e. mortgages, leases, or restrictions) by the date of closing, and 2) all new encumbrances will be duly included on the title. They'll draw up a preliminary report, which your HomeSense® Realty Agent will go over with you in detail.

Contingencies. A contingency is a condition that must be met before a contract becomes legally binding. For instance, a homebuyer will usually include a contingency stating that their contract is binding only when there is a satisfactory home inspection report from a qualified inspector. Some common contingencies include:

• Obtaining financing and insurance;
• Reviewing all pertinent documents, such as preliminary title reports and disclosure documents;
• Selling an existing residence;
• 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 and/or mold.

Depending on the outcome of these inspections, one of three things may happen:

• Either each milestone is successfully passed and the contingencies are removed, bringing you one step closer to closing, or
• The buyer requests a renegotiation of the terms of contract (usually the price), or
• The buyer may have the option to fully rescind the offer.

This is when a professional listing agent can make a real difference in the outcome of the transaction. Having dealt with thousands of property sales, HomeSense® Realty understands how to proceed and protect your interests in each unique situation.

Loan approval and appraisal. We often suggest that you accept buyers who have a Mortgage Company’s pre-approval letter, which is a better guarantee of eventual loan approval than a pre-qualification. Also, expect an appraiser to review your property to verify that the sales price is appropriate.

Ready to go? Don't pack your bags just yet. Something unexpected might happen. HomeSense® Realty Agents are always prepared. 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.

For more information on any of these issues, contact a local HomeSense® Realty Agent.