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Residential closings: what you should know. We recognize that buying or selling a house or commercial property is a complicated process that can be difficult to people unfamiliar with it, particularly when it comes to the final closing. We’ll go over a few crucial things you should know about residential closings in this article so you can be prepared.
Residential Closings: What You Should Know
Escrow accounts are used in residential closings. One important aspect of this closing process to be aware of is that you will almost always be required to setup an escrow account, which essentially permits a third party to keep the funds until the transaction is completed. Giving the money to a third party for safekeeping helps to ensure that neither party is defrauded (or feels tricked).
You must conduct a title search. Another thing to keep in mind about home closings is that they always entail conducting a title check on the property. A title search verifies that the property’s title is free of legal issues–in other words, it ensures that the property belongs to the seller and that they have the legal authority to sell it in the first place.
Home inspections are also a part of residential closings. Conducting a home inspection on the property up for sale is the third step in the residential inspection procedure. If you’re a buyer, you’ll want to have this type of inspection done to ensure that the property has no major issues before you buy it.