Buying real estate sometimes is a long and arduous process. It may have taken you weeks if not months in choosing your dream house, but the process doesn’t start there. The process of transferring ownership officially begins once the offer was accepted and the negotiation between buyer and seller with the assistance of his real estate agent was completed.
The purchase agreement is a legal document, with various expiration dates which have to be exactly fulfilled as stipulated in the contract to avoid penalties and cancellation.
The most common steps in buying a residential property
- Financing or obtaining a mortgage
This is one of the most important steps. If you, for example, want to disburse only 80 percent of the value of your property then you should get yourself a lender. Unless you are paying cash, realtors ask you to be preapproved for a mortgage before they proceed with finding the property because otherwise all their efforts will be wasted if you can’t finance your house.
- Inspection of the property
It is advisable to hire the services of a home inspector who makes a full inspection of the property which includes electricity, plumbing, termites, roof, among others. The inspector will report on the conditions of the property and an estimated repair cost should there be a need.
- Good faith deposit
After conducting inspections and received an acceptable report, generally, a deposit of good faith is required to continue the transfer process. This deposit is placed on how much of “escrow” until the day of closing. It is important to hire a reliable real estate closing services to have a smooth transaction.
- Obtaining title insurance
No matter whether you are buying a property in cash or if you are applying for a loan to make the purchase, title insurance is necessary for the transfer of property in the US. Title insurance or title search is effected through Title and Escrow Ocean. Title insurance protects the buyer of any defects or errors in the title, third-party claims rights such as inheritance rights, fraud in the transaction, writes errors, lack of consent of the parties among others.
- Statutes of the Condominium
If the property is located in an apartment building buyer must apply to the association of co-owners or building management. You have to meet the approval process which involves filling out forms with personal information, ( personal references, bank references, credit and often must attend an interview or guidance which explain the rules of the building. There are costs associated with this process and are detailed in conjunction with the application.
- Property inspection before the closing date or day of the transfer (Final walkthrough)
Before the day of the closing and delivery of keys, the buyer or his representative visit the property to ensure that the seller has fulfilled all the details of treatment and the contract of sale. The condition of the property must be equal to the negotiated in the agreement, if personal items are included in the sale such as appliances, ceiling lamps, home accessories as ceiling fans, must be present during the inspection. If there are any issues, it must be resolved before making the final closing.
The day of closure or transfer of ownership
The culmination of the process of buying a property in Florida is the closing day. This day brings together the seller (s), the buyer (s), the real estate agent.
- Distribution of Funds
The escrow will be responsible for distributing the funds to the appropriate parties.
- Delivery of key
Once all funds were distributed, key collection is the most exciting time this purchasing process. You should always ensure you get all the corresponding keys of both the house and garage, electronic keys if required in the apartment building, the mail, the sticker for the car if necessary and those of the wineries. Also, the seller must give the new owner all the guarantees of housing, alarm, guarantees appliances and the list of service providers as the company garbage, cable TV, electricity.