The Process Of Real Estate Closing Virginia

By Virginia Powell

Closing can also be referred to as settling and is the legal transferring of ownership of property. Usually, but not always, transfer of property happens during closing. There are some instances where a seller asks to close a sale but they still remain in possession of the property. They will then be paying rent until they get to vacate that property. In considering real estate closing Virginia residents need to know what the process involves.

Among the first things that one should not is that they will need to stay organized. It is a process that involves various steps and an agent would help to make it simpler and faster. When you involve an agent, they make the entire process easier by offering the needed guidance. It will be important to understand contingencies. These are conditions included in offers that must be fulfilled before a deal is closed. For example, a buyer might submit their offer with contingency for home inspection.

There is what is referred to as earnest money. This is the money delivered some 1 to 3 days after a seller accepts an offer for the home. The money is delivered to a title or escrow company that will hold it for the period of the transaction.

It can also be referred to as a good faith deposit and ranges between 1 to 3 percent of the sales price of the home. It is applied towards closing costs of buyers. In case the buyer decides to get out of the deal for what is not covered by the contingency, they are supposed to forfeit the earnest money.

There is then scheduling of a home inspection. This is unless of course they waived home inspection contingency or if the home was inspected before the offer was made. Inspectors will give the buyer accurate pictures of the condition of the home. Any major issues will be identified so that negotiations can be done more confidently.

Home appraisal will be a very important aspect too. Unless in cases when a buyer pays in cash, they will be offered mortgage. The lender will ask for appraisal of the home. If the home does not appraise, which would mean the bank does not think it is worth the offer, it is the buyer that decides what to do. Home appraisal contingencies allow buyers to opt out of deals at that point. They could also renegotiate new prices that both parties are comfortable with.

Title insurance will offer useful protection against losses if problems arise with titles after purchase of a home. For most of the purchases, there are two parties that will benefit from the insurance. They are lenders and home buyers. If in any case a buyer has financing contingency and is not in a position to pay for purchase, they are allowed to get out of the deal, in which case they get back earnest money.

The closing is done at the office if the title company. It is the duty of the company to verify current legal owner of the property in question. At the same time, they will reveal any unpaid taxes and liens. Should there be restrictions that could affect the sale, they are also identified.

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