Escrow, inspections & appraisals

Inspections and Appraisal.

Most buyers will have the property inspected by a licensed property inspector within the time frame that was agreed upon in the real estate contract to purchase. If the contract is conditional upon financing, then the property will be appraised by a licensed appraiser to determine the value for the lending institution via third party. This is done so that the lending institution can confirm their investment in your property is accurate. The buyer of a commercial property may also have a complete environmental audit performed and or a soil test, if required by the lending institution.

The Closing Agent.

Either a title company or an attorney will be selected as the closing agent whose job it is to examine and ensure clear title to real estate. After researching the complete recorded history of your property, they will certify that 1) your title is free and clear of encumbrances (e.g. mortgages, leases, restrictions or liens) by the date of closing; and 2) all new encumbrances are duly included in the title.

Contingencies.

A contingency is a condition that must be met before a contract becomes legally binding. For instance, a buyer will usually include a contingency stating that their contract is binding only when there is a satisfactory home inspection report from a licensed inspector. Before completing his or her purchase of your property, the buyer goes over every aspect of the property, as provided for by purchase contracts and any applicable addendums. These include:

1. Obtaining financing and insurance.
2. Reviewing all pertinent documents, such as preliminary title reports and disclosure documents.
3. Inspecting the property. In residential transactions, by hiring a licensed property inspector to perform all or some of the following inspections: home inspection, wood destroying organisms (WDO Inspection), 4 Point Inspection, Wind Mitigation (Roof) and Well & Septic (if applicable). In a commercial transaction, by hiring a property inspector to do a general property inspection, environmental testing and soil testing.

How do you respond objectively and fairly to the buyer when a renegotiation is requested, while acting in your best interests? This is when Mike can make a real difference in the outcome of the transaction. Having dealt with various property sales in the past, depending on the sentiment of either the seller or buyer, Mike has had great success in these situations, although, please understand that some transactions do fail at this point.