We’ve skipped Good Valley News this week to post a great guest blog from our friend, Mike Harvey. Have you ever wondered about all the steps involved once a contract is accepted? Wonder, no longer! Mike explains it all in the post below.
Mike is the President/CEO at Stewart Title, and he takes great care of our clients. Here’s a bit of information about his company: “When investing in a new home, a new site for your business, or any piece of property, you need to have peace of mind that the property is truly yours. Since 1893, we have dedicated ourselves to giving each and every one of our customers the sense of security necessary to turn a house into a home or a commercial site into a headquarters.”
And don’t worry…Good Valley News will be back next week.
You’ve found a house or a buyer has found yours, and everyone has agreed on a price. So what happens between now and the time it becomes legally owned by you or another party? At Stewart Title, we understand the home buying process can be a little confusing. So we’ve put together this information to help you better understand what happens when that “For Sale” sign gets switched to a “Sold” sign.
Step One – Earnest Money
Earnest money is a deposit made by the purchaser as a sign of good intent to purchase the property. An agreement to convey (or transfer the title) starts the process once it is received at the title company along with the earnest money. Loan application is made by the buyer, and approval is usually subject to a credit check, an appraisal and, sometimes, a survey of the property.
Step Two – Tax Check
The title company then determines what taxes are owed on the property. The various assessor-collectors are contacted by the title company.
Step Three – Title Search
Copies of documents are gathered from various public records: deeds, deeds of trust, various assessments, and matters of probate, heirship and divorce and bankruptcy are addressed.
Step Four – Examination
The title company now verifies the legal owner and the debts owed by the owner.
Step Five – Document Preparation
Appropriate forms are prepared for the transfer of title and settlement, or the formal transfer of ownership (commonly referred to as the closing).
Step Six – Settlement
An escrow officer oversees the closing of the transaction: the seller signs the deed, the buyer signs a new mortgage, the old loan is paid off and the new loan established. The seller, real estate professionals, attorneys, surveyors, title company and others performing services for the buyer and seller are paid. Additionally, title insurance policies will then be issued to you and your lender.
For more information about Stewart Title, or if you have questions for Mike, click here!