Congratulations!!!! You are well on your way to completing your Carlsbad real estate purchase. To review, by this point you have already figured out what you wanted, found a Realtor, looked at many properties, selected the one you love, made an offer, opened escrow and got loan approval. Soon you will experience the joy and excitement of taking ownership of your new property.
So what happens over the next 30 days while you wait for escrow to close? This is when all sorts of things happen behind the scenes and when having a good Realtor makes all the difference. Written into your contract are several contingencies, things that either needs to happen, or not happen, so you are comfortable proceeding with the deal. We've already discussed getting the appraisal and loan approval, but there are several other important contingencies you will learn about.
They include:
1. Getting a title search: This is very important. During this step a title company will perform an historical review and research of all the legal documents relating to the ownership of your property. This is to ensure that there are no 3rd party (or any other) claims against the title of your property. The report will show any liens or easements associated with the property.
Think about it for a second. You wouldn't want the surprise of finding out that someone else has a claim on your property after you have gone though with the transaction. In addition, this is a requirement for lenders for the very same reason that they don't want to lend money against the property that someone else has a claim against. To put this to rest once and for all, you will likely be asked to purchase Title Insurance in case records that were researched contain errors or there were mistakes in the review process. This gives both the lender and you protection.
2. Reports and Disclosures: Get ready to be inundated with tons of disclosures and reports. Everything about the condition of the house must be disclosed by the seller. There are states and county requirements to disclose anything and everything that could affect you or your home should you decide to purchase it; these include disclosures about earthquake, fire, flood, etc. It's a long list of items to read but don't get annoyed, all of these disclosures are provided to make sure you are a well informed buyer.
3.Buyer Inspections: You will be given the opportunity to have a contractor or inspector conduct a thorough inspection of the home to find out if there are any defects or needed repairs. This is always where the transaction gets sticky because the seller is not obligated to agree to pay for anything. From the seller's point of view you are buying a used house. But when you discover there is an undisclosed mold issue that will cost $7,500 to fix, you of course want the seller to pay! Your agent will help negotiate with the seller to cover the cost of any items you were unaware of. If the seller will not budge you can walk away from the deal if you desire. There will also be a termite inspection and by contract the seller will pay for any termite issues.
4. The final Walk Through: You will be given the chance to look at the home once again before escrow closes to make sure it's in the same condition as when you made your offer This is typically a formality but it gives you the chance to see if any agreed upon repairs have been made or if there is any damage to the home. Sometimes furniture gets moved and exposes either stains on the carpet or holes in the walls.
5. Close of Escrow: On the closing date you will go to an escrow office to verify and sign all the paperwork required to complete the transaction. These days it is highly likely that you might not have to go anywhere and that a notary sent by the escrow office will come to you to directly. You will have to pay your closing costs; escrow and title fees, loan costs, tax impounds, homeowners insurance and other misc. fees .
4. Get the Keys: On the day of closing, once your agent gets confirmation that the deed has recorded with the county, you will meet the agent at your new home and get keys. This is truly the happiest day for both you and your agent and marks a new chapter in your life. Congratulations, you own a new home.
That about covers it. home purchase, I guarantee that the next one will be much easier due to the experience you were able to gain during this transaction.
Need help with negotiating your Carlsbad Real Estate sale? Great. I would be more than happy to help you. Just give me a call. I can be reached at the number below.
Allison James Estates & Homes
Dave Kearney
CA DRE#01852532
Ph: (760) 845-6495
204 N. El Camino Real, E205
Encinitas, CA 92024
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