When a person or company purchases a property in California, they will have to go through the closing process before they become the legal owners of the property. A real estate law attorney can walk you through this process and make sure nothing is missed.
What is involved in closing on a property?
Generally, once the seller has accepted the buyer’s offer, and financing has been secured, the closing process can begin. Although many buyers and sellers want the process to be completed in a day or two, the closing process generally takes several weeks. Here are the main steps that occur during the closing process:
- Escrow account: Open escrow account to hold all funds related to the sale.
- Title search: Your attorney can perform a title search to makes sure that is legitimate and without defects.
- Home inspections: Inspectors may conduct several inspections to determine the condition of the home.
- Appraisal: An appraiser can determine the value of the home to determine whether it is worth the agreed upon purchase price.
- Insurance: Purchase homeowners or property insurance.
- Loan approval: Ensure that your loan was approved by your lender.
- Final walkthrough: Conduct a final walkthrough of the property to make sure there is no new damage.
- Gather closing documents: Collect all necessary documents (driver’s license, purchase agreement, home inspection reports, etc.) and make sure you understand them. A closing disclosure will also be needed detailing the terms of the mortgage and closing costs.
Once you have reached closing day, you will likely need a couple of hours to sign all the necessary paperwork and make all the necessary payments. After everything is signed, the property will be officially transferred from the seller to the buyer.