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The Closing Process

So you’ve finally found the home of your dreams. After months of scanning ads, tromping through various properties, and meetings with real estate agents, it is finally time to come up with an offer to present to the seller. The first step is a very important one, therefore it is a good idea to have a real estate lawyer present even this early in the game. The real estate attorney can help you determine what your offer will be, how much of a deposit you will make, and other important details of this proposed sale. But this is just the beginning. There is still a lot of work to do before closing.

Title Search

Your closing lawyer will perform a title search to make sure that there will be no issues with it in your future. This will let you know if there are any liens, claims, or other problems with the title that need to be addressed before the closing date.

Title Insurance

Lenders demand title insurance. This is known as a “lender’s policy,” and covers them should any unforeseen issues with the title come up. This is not all you need. You also need a “buyer’s policy” which will cover you as well. Do not assume that any issues would have shown up in the title search. Relatives could file a claim to the property which may not show up for months, but could threaten your right to the property.

Homeowner’s Insurance and Flood Insurance

Lenders will also require you to have insurance on the property when you take possession. This will have to be at least enough to cover the value of the property. Flood insurance may also be required if the property is determined to be near a flood plain.

Termite Inspection and Certifications, Home Inspection, Water and Sewer Certifications

Many states require termite inspections and certifications when any home is purchased. Even in states where it may not be a requirement, it is still a good idea to have one, as a home may look fine, but underneath be eaten up from these pests. Also, if your home is not on city water and sewer, water and sewer inspection certification is required. You will also need a home inspection done before closing.

Survey or Plot Plan

Most lenders will ask for a survey of the property. Included in this survey should be the boundaries, improvements, easements, fences, buildings, etc.

Other Documents

There are several other documents which are required for closing on a property. Your closing attorney can take care of these for you to ensure that they are handled correctly. If you have any questions about the closing process, give our offices a call today.

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