Typically, buyers will arrange for a licensed property inspector to assess the property within the period agreed upon in the initial purchase contract. Some buyers might seek additional specialized evaluations, such as those focusing on the roof, HVAC system, or structural integrity. If the sale is contingent on financing, a certified appraiser will evaluate the property to ascertain its value on behalf of the lending institution. This step ensures the lender's investment in the property is justified. For commercial properties, buyers might also request environmental audits or soil tests if their lender requires it.
The Closing Agent.
A closing agent, who could either be a title company representative or an attorney, is responsible for ensuring a clear title for the real estate transaction. They will review your property's complete recorded history to verify that 1) there are no existing encumbrances like mortgages, liens, or leases by the closing date, and 2) any new encumbrances are properly recorded.
A contingency is a specified condition that must be fulfilled for the contract to become legally enforceable. For instance, a common contingency is that the contract will only be binding if a qualified inspector's home inspection report is satisfactory to the buyer.
Before finalizing the purchase, the buyer will scrutinize various aspects of your property in line with the agreement and any relevant addenda. This scrutiny includes securing financing and insurance, reviewing essential documents like preliminary title reports, and conducting thorough property inspections for elements like roofing, pest control, and HVAC systems, among others.
Based on these assessments, one of two scenarios will occur:
1. All milestones are met, and the contingencies are lifted, bringing the sale closer to completion; or
2. Upon review, the buyer may request a renegotiation of contract terms, often concerning the price.
How should you respond to renegotiation requests while safeguarding your interests? This is where our experienced listing agents come in handy. With extensive experience in property transactions, we commit to providing expert guidance tailored to your unique situation.
Loan Approval nad Appraisal.
We recommend considering buyers who have either a lender's pre-approval, formal approval letter, or a written loan commitment, as these offer a more reliable guarantee of loan approval compared to a pre-qualification or lack of documentation. Expect an appraisal to be conducted by a representative of the lending institution to confirm the appropriateness of the agreed-upon sales price.