Closing a real estate deal takes a lot of time, and if you don’t do it properly, it may never get done. One simple mistake could ruin a carefully crafted real estate deal and send both parties walking in different directions, seeking new buyers and sellers with whom to interact. For this reason, both buyers and sellers should carefully review the different steps involved with closing such a deal, so they know what to expect — both of themselves and the other party.
Here are the last three steps you’ll have to make in your real estate deal:
Funding the escrow: At a certain point in a real estate transaction it will be time for the buyer to “show the money.” However, buyers will not have to actually give the money to the real estate owner. Rather, they will place “earnest money” — and not the full amount of money — into an escrow account for safekeeping.
This shows the buyer’s earnest and able intention to buy the property once the various conditions of the selling contract have been satisfied. If, at any time, the seller backs out of the real estate deal, the buyer will have his or her money returned from the escrow. Later, the buyer will fund the escrow with the full amount of money.
Doing the final walk-through: The final walk-through happens just before signing the papers. The buyer investigates the property for any final signs of disrepair that could result in the transaction being invalidated. This allows the buyer a chance to notice if any property has been removed or if any damage has occurred since the buyer’s original thought to buy the property.
Inking the deal: Finally, it’s time to sign the real estate deal, which may involve 100 different papers. That’s a lot of papers to sign, so take your time, read them and sign them carefully.
Now that the deal has been inked, the seller will receive his or her cash from the escrow account and there’s virtually no turning back for either party. Are you in the midst of an important real estate sale or purchase like this? A Texas real estate lawyer can assist you in navigating your purchase or sale with ease