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Most people who occasionally engage in residential real estate transactions never really understand the ins-and-outs of the closing process. The good news is that there are several residential real estate attorneys in Orlando Florida who can help with the closing process.
When it comes to residential real estate, closing a transaction normally includes a buyer appending his or her signature on various documents, such as mortgages, same name affidavits, loan disclosures, closing statements, and several other documents. Generally, the purpose of these documents is to secure financing or title insurance in connection with the buyer’s purchase of the property.
The seller is also required to sign various documents, such as deeds, affidavits, closing statements and several other documents. Generally, the purpose of these documents is to secure title insurance for the benefit of the buyer and to transfer the property to the buyer upon the seller’s receipt of the purchase price of the property.
Closing transactions usually take place at the offices of a real estate brokerage firm, a title company or a law firm. The closing is scheduled on the date of closing that is specified in the purchase and sale agreement that is signed by the buyer and the seller. It is recommended that the entire process be done with the help of residential real estate lawyers in Orlando Florida.
Below are the steps needed to close residential real estate transactions:
1. Deposit of Earnest Money:
After the buyer has identified a condo or a home he or she likes, the first step is to submit an offer. The offer, usually in the form of a purchase and sale agreement, contains language which provides for the payment of a certain amount of money also referred to as the Earnest Money Deposit. The Earnest Money Deposit is placed in an escrow account, beyond the reach of the buyer, to induce the buyer’s good faith performance of the terms of the purchase and sale agreement. The Earnest Money Deposit is held in the escrow account pending the closing of the transaction. That Earnest Money Deposit may be forfeited if the buyer does not timely perform its obligations under the purchase and sale agreement.
2. Applying for a Purchase Money Mortgage:
If the purchase of the property is to be financed, the next thing is for a buyer to locate a lender to finance the buyer’s purchase of the home and to subsequently apply for the residential mortgage. One should also seek the help of Orlando real estate lawyers when applying for the loan so that Orlando real estate lawyers can assist with the application process and with the review of the loan documents that the buyer will be required to sign at closing.
3. Title Insurance:
Title Insurance is insurance on the title of the home being purchased by the buyer. Generally, it ensures that the buyer of the property will possess good and marketable title to the property that is without defects. The selected title insurance agent will provide the parties with a title insurance commitment, which will provide certain requirements that will need to be satisfied before the closing so that the a title insurance policy may be provided to the buyer at closing. Orlando real estate attorneys should be consulted at this state in order to ensure that the buyer will receive good and marketable title to the property at closing.
4. Property Survey:
The property is inspected by a real estate surveyor to determine the real estate boundaries. This is also to ensure that the description of the property is correct and report if there is anything amiss.
As a potential buyer, it is crucial to perform an inspection on the property that is being purchased. When setting up the inspection, the buyer should specifically inform the inspector what will need to be inspected on the property. The building structure may be on the inspector’s agenda, but it may also make sense to inspect the septic tank, the pool, the appliances and for any wood-destroying organism, such as termites. Once the inspection is complete, the inspector will provide the buyer with an inspection report, which will include a detailed report of the inspector’s findings and will give the buyer a good idea of any issues or defects that may exist on the property before the buyer decides to go through with the closing.
6. Municipal Lien Search:
As a potential buyer of the property, it is important to confirm whether there are any unrecorded tax, sewer and municipal liens against the property. Unrecorded liens may later become liens that attach to the property, which is why it is important to address any unrecorded liens before a scheduled closing as opposed to after the lien has already attached to the property.
7. Preparation and Review of Closing Documents for Buyer and Seller:
Aside from the loan documents that will need to be signed by the buyer at closing, there are also certain documents that will need to be prepared by the Title Agent in preparation of the closing. The purpose of these documents is to clear up any title issues or defects that may be found when conducting the title search on the property. Once prepared, it is encouraged that both the buyer and the seller, together with their Orlando real estate attorneys, review the closing documents before they can sign.
Real Estate documents Generally Needed to Close the Transaction
After all due diligence has been concluded and all title commitment requirements to close have been satisfied, your title agent will prepare the necessary documents required to close the transaction. Some of the documents that are usually needed to close include the following:
• Bill of Sale for the conveyance of any personal property in the transaction
• Warranty Deed for the conveyance of any real property in the transaction
• Affidavits for the clearing up of any title issues or defects relating to the property
• Closing Statement for a detailed breakdown of the costs in the purchase of the property
• FIRPTA Certification in order to confirm whether the FIRPTA tax deposit will need to be collected at closing
Once the closing is scheduled, if retained to represent one of the parties, the lawyers at Nishad Khan, PL, will assist the represented party with the entire process and will answer any questions that the represented party may have concerning the transaction.
Working with Orlando real estate lawyers at Nishad Khan, PL, will ensure that a party in a residential real estate transaction will have peace of mind as he or she sits down at the closing table to complete the closing on the property.
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