So, your offer has been accepted and you are anxious to move out of the house. But before you start packing you need to make sure that your Real Estate agent is up to monitoring your close of escrow. These steps are:
1) Contingency Removal: Contingencies could delay your close. In fact, you should avoid accepting them if you have cleaners offers which don’t have contingencies. But assuming your offer has inspection and loan contingencies, your real estate agent needs to work with the buyer’s agent to assure these inspections are done on time and there are no challenges with the loan’s funding.
In fact, you should be prepared in case the appraisal of your home for the buyer does not is lower than the offer price. In these cases, the bank can easily require your buyer to come up with the difference which could jeopardize your sale.
2) Title Insurance: Your buyer won’t close on the escrow unless they are able to get clear title. Title search is part of making sure that there is no ambiguity on title and it’s clear. So, have you agent order a prelim as soon as the escrow is opened. Preliminary Title report would contain home’s legal description, boundaries, easement and other requirements.
3) Escrow Instructions: Your real estate agent needs to make sure that your buyer’s earnest money deposit is received at escrow typically within 3 days of contract date. Your agent needs to meet with the escrow officer and review the escrow instructions to make certain none of these could delay your close.
4) Final Walk-Through: Your agent needs to schedule a final walk-through and get buyer’s signature on disclosure that shows every appliance, switch, plug, water heater, AC are all working.
5) Loan Funding: If your agent has been smart enough to only accept pre-approved buyers, then the only condition for the loan’s final approval should be the appraiser. But still you should stay very close to the loans final approval process to avoid any surprises.
6) Record of Title: Once the property ownership is transferred and title is recorded, then you are safe to deliver keys to the buyer’s agent. Avoid the request for access to the property by buyers before the recording. If your buyer’s cause any damage to the property, their home owner’s insurance will not cover the damages.
Call us if you have any questions about the close of escrow process.