For Sale by Owner Guide

		FOR SALE BY OWNER GUIDE
		Written by Susan Wilcox [ disclaimer ] CLOSING Now that you've accepted an offer, the next step is to select a title company that will handle the closing. The title company's officer is a neutral third party who processes the instructions you and the buyer have outlined in the purchase agreement. They don't give legal advice, but they do know the legal requirements of your transaction and make sure that everything gets done, that all the monies are distributed properly, and that the transfer of title to the property is recorded. It's a good idea to order title insurance at this point. Title insurance is required for both buyers and sellers. Title insurance protects against disputes arising over ownership of the property - often resulting from legal problems with the title. A title insurance order form has been provided by Bell Title Company here. Now your work is almost done - except for the moving and packing, of course! You will need to open your home on two more occasions: • An appraisal, which will be required by the buyer's lender. This ensures that sales price is not higher than the fair market value of the home. • A home inspection. Often included as part of the purchase agreement is the option for the buyer to hire a professional inspector who is specially trained to assess the condition of your home. The home inspection is very thorough and may find problems you didn't know were there! If they are objectionable to the buyer, they may ask for you to fix them or to make an adjustment in the sales price. If you can't come to an agreement, they will have the right to back out of the deal and have their earnest money returned to them. Likewise, if the appraisal is less than the sales price, you might have some renegotiating to do. Now aren't you glad you hired that real estate attorney? Meanwhile, the title company will: • Conduct a title search to ensure you are the legal owner of your property and that there are no claims against it or past taxes due. • Issue title insurance to you and your buyer to protect you both from future claims against the property. • Make sure that all disclosures are completed. • Contact your mortgage company for a pay-off amount. • Ensure that the buyer has hazard insurance (which their lender will require). • Oversee the signing of loan documents by your buyer. • Collect the remainder of the down payment and the buyer's closing costs. • Accept funding from the new mortgage lender, and … • Distribute these funds appropriately. Whew! Of course, they don't provide these services for free. You will pay for some of these and the buyer will pay for the others. The seller generally pays for the title search and insurance, and any transfer fees. These will be deducted from the check you receive for your property at closing. The transaction will close once the title company representative receives the funds from the buyer's lender and the buyer has brought in the remainder of the down payment and closing costs. Once all the monies are there, the title company representative makes sure the transfer of title is recorded, and you will hand over the keys to the castle. You've done it! You've sold your home and, we hope, made a nice profit. Congratulations, and best of luck in your next home! <<Previous Page 1 2 3 4 5 [6] Next Page >>

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