Need Help Closing an As-Is Real Estate Sales Contract?
You found a property that you like that you want to put an Offer on. You let your real estate agent know that you want to put an offer in. At Rock Solid Title, we will review the “As-Is Contract” for a nominal cost. Now, what happens, after the contract has been reviewed by a good real estate attorney?
Well, there are several things that need to be thought out about when purchasing this piece of property:
- How much are you pre-approved for?
- When are you going to close?
- What is the inspection time frame?
- Who does the appraisal?
- Do you need a survey of the land?
- Who will finance the deal?
- Who will be your title agent?
PRE-APPROVAL FROM LENDER
Hopefully, you already know how much you are already pre-approved for and what your budget is to purchase the property. If not, then the first step is getting pre-approval from a lender to purchase the property or providing the cash to purchase the property. At Rock Solid Title, we have a lot of connections with different lender that will help you get the loan that you need.
Closing date is usually one to two months after the offer is accepted and the effective date (also known as the last date that the buyer and seller signed the contract.) There is an escrow deposit that will need to be made to show that the contract is firm. When the contract is firm, then the contract has substance and will be able to be closed on, if issues such as: inspections, financing, and appraisal are satisfactory. It is important to transfer the escrow to a good closing attorney that is both trustworthy and honest, such as Rock Solid Title.
WHO PAYS THE DIFFERENT COSTS: THE BUYER OR THE SELLER
Rock Solid Title also has a lot of experience and knowledge in knowing the different costs that need to be paid by either the Buyer or the Seller. The closing agent obtains the title commitment (seller cost), the municipal lien search (seller cost), and the estoppel (seller cost)/ survey (buyer cost) of the property. The title commitment shows what requirements need to be obtained to close on the property. The municipal lien search shows what liens effect the property. The liens and any open permits need to be closed in order to effectively close on the property.
Rock Solid Title has obtained several estoppels for clients and has knowledge in reviewing an effective municipal lien search. The estoppel is a document which shows what the seller has paid in relation to condo association or homeowner association fees for a planned community. The survey is important to show the boundary lines of the property that is being purchased. The closing attorney also has to know the costs incurred with the closing for the buyer or the seller, such as in Miami-Dade and Broward County, where the Buyer chooses the title company and pays for the title policy customarily. In Palm Beach County, the title policy is paid for by the Seller and the Seller chooses the title company.
The inspection period is very important and usually lasts ten (10) days. The closing can fall apart during the inspection period because if the roof needs to be replaced and cannot be negotiated, then the contract can fall through. It is important that a good inspector assesses all the issues dealing with the property being bought.
FINANCE THE DEAL – CAN THE DEAL FALL THROUGH
It is important that you have a good title company like Rock Solid Title PLLC to work with the lender for the financing.
The contract can fall apart during financing. Hopefully, the pre-approval from the lender is still in good terms to purchase the property that you have your heart set on. However, if the lender does not approve of the loan because there are too many lawsuits against the condominium, then the contract can fall through. If there are not sufficient funds in the condominium association, and there is an active case against the association and a release cannot be obtained, then the contract can fall through.
If there is a cash deal, and the owner lost her job through no fault of her own and can no longer provide the funds, then the deal can fall through. Financing the deal is one of the most important issues when purchasing a property. Make sure that you have a good title company to work with your lender like Rock Solid Title PLLC.
WHO WILL BE YOUR TITLE AGENT?
On the “As-Is” Residential contract, there is a space for “who will be your escrow agent?” This is very important to fill out because if you did not fill it out accurately, you may be using the Seller’s attorney to provide your title work. It is important that you have two sets of eyes reviewing the title policy and completing the requirements of the title commitment of the title policy.
Closing an As-Is Real Estate Sales Contract
If it is a smaller deal, then usually one title company can represent both sides. However, if the closing is more than a million dollars, it is suggested that two different attorneys review the title commitment to obtain that title policy. In Miami-Dade and Broward County, the Borrower usually hires the title agent. In Palm Beach County, the Seller hires the title agent to work on the deal. It is suggested that you call the title company, Rock Solid Title PLLC, for all of your title agent needs.