partners.
The money won’t be given out until the documents have been received by each party and the escrow agent, with the proper and appointment person’s signature. The seller should want to wait to make sure the right person for the buyer is the person signing the documents. If it is not, the signature isn’t viable. Once the title report and the series of closing documents are accepted, the deal can be finished. Earlier in negotiations, a title company should have been hired to issue an early report of the state of title to the property. This is often much more difficult or complicated than residential titles. It needs to be free of the easements and encumbrances that I’ve discussed in previous chapters. Once that first report is issued, the buyer then reviews it. Then the buyer will file any objections or raise any concerns about the findings. If it is fair, the seller will be able to use the escrow period to solve those problems. If they don’t, the buyer can walk away even though the deal had been signed. When all the issues with the title are settled, the title company then issues a final report. Both the seller and the buyer will then go over the report for errors, concerns, or any final issues. Finally, the deal can move forward after that. The next chapter will discuss these inspections and other aspects of due diligence.
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