The real estate transaction process is a complex web of negotiations, paperwork, and legalities. One crucial milestone in this journey is the “Close of Escrow.” In this blog post, the Real Estate experts at The Tina Peterson Team will take a closer look at the process of closing escrow, unraveling the intricacies and shedding light on the steps involved.
Offer Acceptance
The journey to close of escrow often begins with an offer. Once a buyer submits an offer on a property and the seller accepts it, the property enters escrow. This marks the beginning of a series of steps leading to the finalization of the deal.
Opening Escrow
Upon acceptance of the offer, a neutral third party, typically an escrow officer or company, is chosen to facilitate the transaction. Escrow is a financial arrangement where a trusted third party holds funds and documents until both parties fulfill their obligations.
Title Search & Insurance
Simultaneously, a title search is conducted to ensure that the property’s title is clear and free of any encumbrances. Title insurance is often obtained to protect the buyer and lender against any unforeseen issues related to the property’s ownership.
Home Inspection & Appraisal
The buyer typically arranges for a home inspection to identify any potential issues with the property. Additionally, an appraisal is ordered to determine the fair market value of the home. Both processes contribute valuable information to the negotiation and decision-making process.
Loan Approval & Contingency Removal
If the buyer is financing the purchase, they must secure a mortgage. Once the loan is approved, contingencies, or conditions that must be met for the deal to proceed, are removed. This includes any repairs or adjustments negotiated after the home inspection.
Signing Documents
As the closing date approaches, both parties sign a plethora of documents. The buyer signs loan documents, the seller signs the deed, and both parties sign various disclosures and agreements. This process is often facilitated by the escrow officer, who ensures that all necessary paperwork is in order.
Funding & Final Verification
Once all documents are signed, the buyer’s funds are transferred to the escrow account. The escrow officer verifies that all conditions have been met before instructing the title company to transfer ownership.
Recording the Deed
The final step in the close of escrow is the recording of the deed. The county recorder’s office records the transfer of ownership, officially completing the transaction. The buyer receives the keys, and the seller receives the funds from the sale.
Residential House & Condo Property Sales in Greater Ann Arbor, Brighton, Highland, South Lyon, Milford, Pinckney & Howell, MI | Southeast Michigan Real Estate
The close of escrow is the culmination of a meticulous and often intricate process. From the initial offer to the final recording of the deed, each step plays a crucial role in ensuring a smooth and successful real estate transaction. Understanding this process empowers buyers and sellers to navigate the complexities with confidence, turning the dream of property ownership into a tangible reality. At The Tina Peterson Team, we use our experience and knowledge to help guide you through this process. We do our best to make it a seamless process for you, providing less stress and much excitement. Call The Tina Peterson Team today and begin your house hunting journey as we hold your hand through it all.