Closing is also known as settlement and is the legal transfer of ownership of property. Normally, but not all the time, possession will be transferred during closing. There are instances when a seller might ask to close the sale but still retain possession, and then pay rent to the buyer until such a time that they vacate the property. When considering real estate closing Virginia residents need to know what it involves.
Among the first things that one should not is that they will need to stay organized. It is a process that involves various steps and an agent would help to make it simpler and faster. When you involve an agent, they make the entire process easier by offering the needed guidance. It will be important to understand contingencies. These are conditions included in offers that must be fulfilled before a deal is closed. For example, a buyer might submit their offer with contingency for home inspection.
There is earnest money that parties involved will need to clearly understand. It refers to the money that is delivered one to three days after acceptance of the offer by a seller. It is usually delivered to an escrow company which holds it for the entire transaction period.
It is also known as a good faith deposit and tends to be between 1-3 percent of the sales price and will cater for closing costs of the buyer. In case a buyer backs out of a deal for anything that is not covered by a contingency, they get to forfeit the earnest money.
There could then be scheduling of home inspection. This happens unless of course the home inspection contingency was waived or in cases where the home was inspected before making of an offer. An inspector gives a buyer an accurate representation of what the condition of the house is. If there are any major issues, they are identified to enable negotiations to proceed confidently.
The home appraisal issue is a very important one. Unless you have a buyer that is paying all in cash, they get to be given mortgage. Mortgage lenders usually ask for home appraisal. If the home does not appraise, it would mean the bank will not see the worth and the buyer is forced to make a decision on the way forward. With home appraisal contingency, a buyer is able to back out of a deal at this point and could then renegotiate a new price that is agreeable to everyone.
Title insurance will offer protection against any losses if problems arise with the title after purchase of the home. For most purchases, there are two parties which require title insurance, the home buyer and lender. If the buyer has financing contingency and thus cannot get a loan to do the purchase, they will be free to get out of the deal. They will then be offered earnest money.
Closing usually happens at the office of a title company. It is their duty to confirm who the current legal owner of the property is. Also, they reveal any liens, mortgages or unpaid taxes. If there are any restrictions that might affect the sale, they will be identified.
Among the first things that one should not is that they will need to stay organized. It is a process that involves various steps and an agent would help to make it simpler and faster. When you involve an agent, they make the entire process easier by offering the needed guidance. It will be important to understand contingencies. These are conditions included in offers that must be fulfilled before a deal is closed. For example, a buyer might submit their offer with contingency for home inspection.
There is earnest money that parties involved will need to clearly understand. It refers to the money that is delivered one to three days after acceptance of the offer by a seller. It is usually delivered to an escrow company which holds it for the entire transaction period.
It is also known as a good faith deposit and tends to be between 1-3 percent of the sales price and will cater for closing costs of the buyer. In case a buyer backs out of a deal for anything that is not covered by a contingency, they get to forfeit the earnest money.
There could then be scheduling of home inspection. This happens unless of course the home inspection contingency was waived or in cases where the home was inspected before making of an offer. An inspector gives a buyer an accurate representation of what the condition of the house is. If there are any major issues, they are identified to enable negotiations to proceed confidently.
The home appraisal issue is a very important one. Unless you have a buyer that is paying all in cash, they get to be given mortgage. Mortgage lenders usually ask for home appraisal. If the home does not appraise, it would mean the bank will not see the worth and the buyer is forced to make a decision on the way forward. With home appraisal contingency, a buyer is able to back out of a deal at this point and could then renegotiate a new price that is agreeable to everyone.
Title insurance will offer protection against any losses if problems arise with the title after purchase of the home. For most purchases, there are two parties which require title insurance, the home buyer and lender. If the buyer has financing contingency and thus cannot get a loan to do the purchase, they will be free to get out of the deal. They will then be offered earnest money.
Closing usually happens at the office of a title company. It is their duty to confirm who the current legal owner of the property is. Also, they reveal any liens, mortgages or unpaid taxes. If there are any restrictions that might affect the sale, they will be identified.
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