If you are currently in the process of closing on a real estate transaction, you’ll know that the many stages involved can be overwhelming, and at times, confusing. The more you know about the real estate process, the better equipped you will be to lead the process.
While your realtor will be there to support you at this time, you must conduct your own independent research so that you can reduce the chance of being misled or misinformed. The following is a breakdown of the most important stages of a real estate closing.
Open an escrow account
A third party will need to hold an escrow account before the transaction can take place. An escrow account holds the funds for the property before the transaction takes place. The purpose of this is to prevent the buyer or seller from being cheated.
Get title insurance
When purchasing a property without title insurance, there’s always a possibility that someone will try to claim ownership of the property in the future. This could lead to a costly court battle and could result in you losing your home. That’s why it’s paramount that you purchase title insurance. This will protect you from the financial implications if this happens. Conducting a title search will also help you to identify any potential conflicts in ownership.
Remember that negotiation is the keyword when it comes to real estate transactions! Don’t forget to negotiate all costs, from realtor services to escrow costs.
If you are struggling to close on a real estate transaction, make sure that you gain trustworthy information and that you understand how real estate law applies to you.