Closing the Sale
You've made it so far and it's time to close on the purchase of your new home. Your agent will walk you through the entire closing process to ensure that your closing goes smoothly. The closing process has several steps:
Opening Escrow: Escrow is a third party who acts as a median between the buyer and seller in a transaction. The funds The purpose of using an escrow account is to ensure that the buying and selling parties are protected in the financial exchange. Escrow will ensure that both parties meet their contractual obligations and release the entitled funds and documents accordingly.
Performing a Title Search: A title search protects you, the buyer, by ensuring that no other parties hold any claim to property. Your agent will work with a title company to ensure that there are no liens on the property and that there are no other parties can claim any ownership of the property (such as a relative who has partial ownership). When the title search is done, the title company will contract with an insurance underwriter to issue you a title insurance policy which will pay to defend you in court should any challenges to your title and ownership come up. The title insurance will also typically include a clause in which the title company agrees to compensate you should you lose ownership due to unforseen title complications.
Negotiating Closing Costs: Your real estate agent will negotiate closing costs such as paying for the title search and escrow services.
Potentially Renegotiating the Offer:If there are any damages found in the inspection, your realtor may renegotiate your offer to account for them.
Removing Contigencies: Any contingencies listed in the offer (such as securing financing or making repairs) will be verified and checked off.
Funding Escrow: The payment for the purchase of the house will be sent to the escrow account.
Final Walkthrough: You and your agent will take a final walkthrough of the property to ensure that everything is in order. You will check to make sure that any agreed-upon repairs or updates have been made.
Signing the Papers: The final purchase agreement and title transfer will be signed. Congratulations! You've completed your home purchase!