CHAPTER 11
THE CLOSING PROCESS We are getting to the end of the home-buying story: the happy ending. Your real estate agent has already helped you to prepare the best offer. It contains your list of contingencies (for example, that the seller must fully disclose any problems with the house, specific actions to be taken depending on the results of your various inspections, etc.) and it is finally accepted. Your anticipation of a looming purchase and the move into your new home is rising. You are ready to sign the documents andmove into your new family home, loft, condo, sea-view apartment — wherever and whatever it is, you just want to settle in as soon as possible. However, it isn’t time to call themovers and pack your boxes just yet. One more journey awaits, and there are 10 steps to take before you own your property. Following is a checklist to help make sure all bases get covered. 10 THINGS TO KNOW IF YOU ARE CLOSING A HOME DEAL FOR THE FIRST TIME #1. Open an Escrow The first step to closing the deal and unlocking the front door of your own house is to open an escrow . An escrow is a contractual arrangement in which a third party receives and disburses money or documents for the primary transacting parties, with the disbursement dependent on conditions agreed to by the transacting parties. Escrow, on average, will last approximately one month. During that time, the third party is taking care of transactions on both the seller and buyer’s behalf. For example, if you are providing an inspection as a buyer, you deposit funds to the escrow account. Costs of this service are to be negotiated beforehand. Be conscious of the escrow company’s fees, since some
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