Real estate deals are more than picking out properties and writing checks or signing loan documents. There are actually quite a few steps that must be taken in order to successfully close real estate transactions. For those in Florida or elsewhere, skipping any of these steps can lead to significant problems.
After selecting a property to purchase, the buyer will have to do several things before a closing can be completed. One of the first steps often taken is opening an escrow account. This is an account that is controlled by a neutral third party in which money for the transaction is held until everything is finalized.
After opening an escrow account, a buyer will want to have a title search performed and inspections completed. Failing to ensure a title is clear could result in a buyer later finding out that someone else may have rights to the property. Along with ensuring that a title is clear, making sure there are no major concerns with a property by having inspections performed is something that should not be overlooked. Identifying problems before a closing is finished allows a buyer the ability to request repairs, renegotiate the purchase price or even back out of a real estate transaction. Other important steps before closing include:
- Secure interest rate
- Remove contingencies
- Fund escrow account
- Final walk-through
Real estate transactions can be complex, and important aspects can be overlooked along the way. Through every step of the closing process, Florida buyers have the right to utilize legal counsel in order to ensure their best interests are being protected. Those who are prepared and have taken all the appropriate actions can have peace of mind from knowing that they have done everything within their power to make the buying process go as smoothly as possible.
Source: investopedia.com, "12 Steps To Closing A Real Estate Deal", Amy Fontinelle, Accessed on Oct. 26, 2015