Do You Know What to Expect When You Close?
Here are 4 Basic Steps to Closing a Real Estate Transaction in Virginia Beach
1. Both Sides Come to an Agreement
Whether you’re selling your home or buying a new home, the closing process begins with a ratified contract. Now that both sides have agreed to the terms of your real estate contract, the clock starts ticking. Your sale is now pending, and the closing process has begun.
2. All Contingencies Must Be Satisfied
Most real estate transactions involve condition to the contract that must be satisfied before the transaction makes it to the closing table and the keys can be passed from one party to the other. These conditions are called contingencies. The most common contingencies are the buyer’s ability to secure a mortgage, completion of termite and moisture inspection, and completion of the home inspection. Other common contingencies in Virginia Beach include Lead Based Paint Inspection (if the home is built before 1978), receipt of condominium and/or POA documents, EIFS Inspection, and Transfer Disclosure of Property Near Military Air Installation. Each contingency is subject to its own deadlines and stipulations.
3. Examination of Title
While your REALTOR is busy ensuring all the contingency are removed from the contract, your title company is busy with their end. While the escrow is opened, a title company is conducting a preliminary title report. The title company compiles a comprehensive report of all recorded documents that may affect the deed to the property. The finalized report must be approved by both the buyer and the lender.
4. Closing Table
Now that all the conditions of sale have been met and the preliminary title report has been approved, all parties will agree to sign closing documents. In Virginia Beach, all parties don’t have to be in the same physical location to sign all the documents. Once both parties have signed the agreement, the real estate transaction is now closed, and you have successfully bought or sold your home!