How to Prepare for Closing in a Real Estate Transaction
This is the ninth of FSBO: 10 Tips for Selling Your Real Estate which can be downloaded as a free guide.
Once you’ve accepted an offer to sell your home and have finalized the contract, it’s closing time! But first, you should make a list of all the things that you and your buyer must do before closing.
For example, the property may need to be formally appraised, surveyed, inspected or repaired. Depending on the written contract, you may pay for all, some, or none of these items.
Your title company or real estate attorney can help you review this list and ensure you understand what you will be responsible for.
If each procedure returns acceptable results as defined by your contract, then the sale may continue. If it is discovered that there are problems with the home, then your next step will depend on the terms set forth in your contract.
At this point, you or the buyer may decide to walk away, open a new round of negotiations, or proceed to closing.
Once an offer is accepted, any earnest money from the buyer should be deposited with the title company. In some states, so-called “escrow companies” hold these funds. However, in Florida a title company or the attorney handling the real estate settlement and title insurance could hold the earnest money.
When you submit a fully executed agreement to the title company, the title work will begin. The title process starts with a title search – a search of the public record that discloses documents of record that could affect the title to the property. Examples of such documents include:
