The date of the agreement, the agreement’s expiration date, and when the transaction will close. This should include rights of inspection and who pays for such, if any, costs. The price of the property and the means (cash, check, etc. ) that amount will be paid. The state, county, parcel number, and legal description of the property being bought or sold. The name and signature of the buyer and seller. Details on which party will pay closing costs like property taxes, title work, recording fees, etc. [1] X Research source Include escrow amounts and conditions to close, including right of buyer or seller to renege on transaction (such as if the house is found to have major structural damage).
A statement that entitles the owner to the property, basically a short opening statement saying the time and date the buyer gained ownership of the lot or house. A list of property rights from one person to another, that is what rights the buyer does and does not have regarding how he or she uses the property A definition of what ownership of a property means in that specific region’s governing body, that is a brief overview of property laws in your state, city, etc. [3] X Research source Once a deed is signed and completed, you need to take it to the local courthouse where it can be signed and notarized. Which precise office of the court or county notarizes deeds varies from state to state and county to county, but someone at the courthouse should be able to provide the information. You can also find this information online through your local state government’s website. [4] X Research source
Money should not be exchanged between buyer and seller in a real estate transaction until the sale is finalized. An escrow account is where any money goes in the meantime, and an escrow agency manages the account. You can find escrow agencies online and in the yellow pages. Make sure to read reviews. You may even want to ask a representative for the phone numbers of previous clients so you can ask people one-on-one about their experience working with the agency.
Look out for fees with names like application review fees, appraisal review fees, processing fees, and settlement fees. Start off negotiation by asking an escrow agent what precisely these fees are for. If the agent is worried you’re suspicious, he may offer to waive or reduce the fees. Escrow agencies want to maintain a solid reputation and do not want buyers and sellers complaining to others in the real estate world of junk fees. [9] X Research source
Unless you have knowledge of home inspection and repair, you’ll have to hire a third party to conduct the inspection. Issues like faulty wiring and poor plumbing, which could pose major problems down the road, might go overlooked by the untrained eye. [10] X Research source A home inspection agency will, for a small fee, look over a home and report back any outstanding issues. If there is anything major, like big structural problems that require costly repairs, you can ask the seller to pay for these before you close the deal. [11] X Research source
If anything came up in inspection, you have two options. You can pay less for the home, given that you’ll have to pay for costs of repairs. You can also ask that the seller have repairs made before you finalize the deal and pay the originally agreed upon price. [13] X Research source Repair companies and pest removal companies can often only give an estimated cost. This can make renegotiating the price given cost of repairs difficult. The best option is to ask that the seller have repairs made before finalizing the deal. This assures you will not spend more money than necessary. [14] X Research source
Real estate closings can be complicated. There may be over 100 pages of paperwork. While you do not have to read everything, make sure things like interest rates, down payments, closing costs, and your rights are what you agreed upon during the closing process. [18] X Research source If there is anything you don’t understand about the real estate paperwork, consult a real estate attorney. [19] X Research source
