For Sale By Owner
Found a Buyer? Found a Home to buy?
What's Next?
Now that you have decided to buy or sell real property on
your own, what happens between the time you find a Buyer/Seller
and closing?
1. Contract (agreement to convey): When the fully executed
contract is received the process begins (Deliver contract to 2840
Keller Springs Road, Ste. 204, Carrollton, Texas 75006 or fax to
972-417-9655.
2. Earnest Money (deposit): Most Sellers require a small
payment to show good faith by the buyer. This money should be forwarded
with the contract and will be deposited in an escrow account until
the transaction is completed.
3. Loan Application: Unless the transaction is cash, approval
of the Buyer's loan application will generally be dependent on a
credit check, property appraisal, and survey.
4. Taxes: Various assessor-collectors are contacted to determine
if taxes are delinquent and what exemptions, if any, are currently
claimed.
5. Title Search: Copies of documents from various public
records including deeds, deeds of trust, assessments, liens, matters
of probate, heirship, divorce, and bankruptcy are examined to verify
the legal owner and any debts encumbering the subject property.
6. Resolution of title problems, if any;
7. Miscellaneous: Checking for homeowner's association dues,
home warranty contracts, and termite inspections.
8. Document Preparation: Appropriate forms are prepared
for conveyance and settlement.
9. Settlement (Closing): An Escrow Agent oversees the closing
of the transaction. (Escrow Agents are disinterested third parties
who do not represent Buyer or Seller.) The closing consists of the
following:
- Seller signs deed;
- Buyer signs new mortgage;
- Old loan, if any, paid off;
- New loan, if any, established;
- Parties performing services for the transaction are paid; and
- Title insurance policies are issued to Buyer and Lender.
10. Financial Protection: Owner and Lender are assured financial
protection against any adverse claims or risks not discovered prior
to closing. If you later refinance or take out a home equity loan,
your lender may require you to purchase a title policy for the new
loan; however, your title insurance policy remains in effect
as long as you own the subject property.
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