When selling a house, one of the biggest concerns you’ll have is the close of escrow.
When is the closing date? Is there anything you can do to fast-track the closing date? Do you need any extra money for closing costs?
But one of the first things you’ll encounter is making sure to close the deal on your timeline. You have to first find a buyer, which can feel like a difficult task.
Once you have a potential buyer, you have to be sure the buyer will be able to purchase the property and close on it when they say they will. And of course, you’ll need to make sure all the paperwork is signed in time and you’ll have to make sure you can get the keys when it’s time.
Have no fear! Today we’re sharing some tips on what to do during the escrow period, including the timeline for closing on a house.
Open an Escrow Account
When you sell a house, the process is easy. An escrow account is opened with a third party.
The buyer and seller execute binding agreements to securely deposit, transfer, or invest money between them. Closing escrow effectively finalizes when both buyer and seller sign the deed, loan documents, and other closing documents.
Title Search and Insurance
To ensure the title to the property is clear, the escrow agent must perform a title search. All title searches go through a public record search, a review of documents about the property, and a review of any mortgages, liens, and encumbrances.
The title insurer undertakes the risk of any title issues that are not determined during the title search. The title company will review title documents and assess any potential risks and either issue a policy or provide an insurance binder.
Hire an Attorney
Closing escrow involves the money, documents, and transfer of the title of the home from the seller to the buyer. It is a legal process.
To be sure everything is done properly, it is necessary to hire an attorney. An attorney makes sure all the paperwork is complete and correct and is aware of the applicable laws and regulations in each state.
They can also provide invaluable advice and guidance on the process and how to complete it correctly. An attorney will ensure that everything is done correctly during the closing escrow process.
Negotiate Closing Costs
Close of escrow occurs at the end of the closing process when both seller and buyer have agreed to the terms of the sale. It is where the deed has been officially transferred, and any liens or other legal nuisances have been cleared.
To initiate the process, a lender will typically write a check for the portion of the purchase price that is to go directly to the seller. The closing agent, title company, or escrow company will ensure that all documents are signed.
Part of closing the escrow is often the negotiation of closing costs, which can add anywhere from 2 to 8% of the purchase price.
How Close of Escrow Works in Real Estate
The close of escrow is sometimes complex. However, by understanding the basics, working with experienced professionals, and seeking help when needed, it’s possible to make the process easier.
Remember, professional real estate services are invaluable when selling your house. Reach out to an experienced realtor today for help with the close of the escrow process.
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