Initial Agreement and Earnest Money Deposit
An effective agreement is a binding legal arrangement between the buyer and the seller. To streamline the process, keep the following in mind:
- Keep Written Records: Transcribe all verbal agreements—including counter-offers and addendums—into written documents signed by both parties. Delano Group will assist in drafting all necessary paperwork and ensure you have copies for your records.
- Stick to the Schedule: After your offer is accepted, follow the agreed timeline to meet each closing milestone. This ensures a smoother negotiation process and helps avoid any breaches of the agreement. We’ll keep you updated throughout, so you’re always prepared for the next step.
Closing Agent
A title company or attorney will be selected as the closing agent. They will hold the deposit in escrow and research the property’s history to ensure the title is clear of any encumbrances by closing. Additionally, they verify that any new encumbrances are accurately recorded. Be aware of restrictions, easements, or encroachments that may limit property use.
How to Hold Title
Consult an attorney or tax advisor to determine the best way to hold title, as different methods have various legal, estate, and tax implications.
Inspections
Once your offer is accepted, have a licensed property inspector conduct a thorough inspection within the agreed timeframe. You may also choose specialized inspectors for areas like roofing, HVAC, or structure. Depending on inspection results:
- 1Proceed to Close: If all contingencies are met, you proceed closer to closing.
- 2Renegotiation: If issues arise, the buyer may request renegotiation of terms, such as the price.
Appraisal and Lending
Stay in close communication with your lender throughout the escrow process to avoid delays. If financing is required, a licensed appraiser will determine the property’s value to confirm it meets the lender’s requirements. When closing is approaching, double-check with your lender to ensure the loan process remains on schedule.
Association Approval
If your purchase is subject to association approval, request relevant documents as soon as you have an agreement. Complete the application accurately and submit it, along with any fees, promptly to prevent delays. If required, schedule your association interview early. The closing agent will request the certificate of approval for the final closing.
Property Insurance
If obtaining a loan, you must secure property insurance as required by the lender. To save on premiums:
- Consider a Higher Deductible: A higher deductible can significantly lower your premium.
- Ask About Discounts: Discounts may be available for homes with safety features, or for older adults and long-term customers.
- Insure the House, Not the Land: Only insure the structure, not the land, as the land value remains after a disaster
We’re happy to recommend experienced insurance agents for any property type.