California Home Inspections and Disclosures
Once escrow opens there are many inspections and disclosures to be informed about. The title company is typically selected by the sellers and the selling agent will generally open the escrow. The loan application should have already been completed by this time, hopefully you have already obtaining a pre-qualification letter.
Typically the seller provides a Pest Inspection report and the buyer obtains a Home Inspection report that validates that the house systems are operable and the building is in compliance with local regulations. The seller will usually pay to have all section 1 items on the Pest Inspection report repaired, and there may be negotiation regarding any of the Section 2 items on the report. These usually are optional, and not as severe as the section 1 items. Various California Disclosures are required, such as mandatory seller disclosures including Supplemental Statutory Disclosure (SSD), Transfer.
Disclosure Statement (TDS), California Statewide buyer/seller advisory, Natural Hazard Disclosure (NHD), as well as Lead Paint Disclosure. Be sure you receive and understand each of these disclosures.
A Preliminary Title Report will be issued by the title company which will list any liens, easements or taxes and other items filed on the property. A property appraisal should be ordered at the start of escrow, to ensure that the property value is correct. Often, the appraised value will be similar to the amount that was agreed upon between the buyer and seller. Many other details will be contained in this report, very interesting to read this report carefully. Typically contingencies are removed within 17 days after the contract is signed. This includes Inspection/Property Contingencies as well as Financial Contingencies. Hazard Insurance is required for most loans, this is a good time to select a good policy for your property. The Lender and Title Company will then coordinate that the Hazard Insurance is incorporated into escrow, just be sure that it is being taken care of.
A Home Warranty is a wise decision, with the seller typically paying for the policy. They typically run about $400-$500, and a very good decision to obtain one to have piece of mind regarding the home being in good shape during the first year. Once the escrow is about to close, the documents will need to be signed. These documents are usually signed at the title company, unless you pay an additional fee for the documents to be signed elsewhere. The final walk-through will take place, to make sure that the home is in the condition you and the seller agreed upon when the Purchase Agreement was signed. This is where you verify that all required repairs have been made as agreed upon.
The Close of Escrow occurs when all items of escrow have been met including the buyer funds required. Recording will happen when the actual title of the property is transferred from the seller to you. This is the final step where you actually own the home.
These are the basic Inspection and Disclosure steps that take place within the escrow period. Various upsets may occur during this time, the buyer/seller needs to be somewhat flexible for unknown events that can happen. Sometimes it can be rough with many obstacles occurring, and sometimes it can be a smooth process. What matters is that the deal is completed with both parties happy that the deal was closed.
Lori English is a real estate broker and internet business woman. As a web expert, she writes for lookiehomesla.com, mlmwebzoom.com, as well as other business opportunity websites. With her experience, certificates, and degrees, she understands real estate, the internet business, and how to invest in properties.
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