Inspections & Appraisals

The Process

Initial Agreement and Deposit

A signed purchase agreement creates legal obligations and outlines timelines. Keep written records of all offers, counter-offers, and addenda. Adhering to schedule milestones helps avoid delays.

The Closing Agent

A title company or attorney serves as escrow and manages funds until closing. The closing agent verifies the title is clear of encumbrances and ensures the correct recording of new documents. All agreed contingencies must be satisfied before closing.

How to Hold Title

Different ways of holding titles have varied legal, financing, and tax implications. Consult an attorney or tax advisor to determine the best option for your situation. We can refer trusted professionals if needed.

Inspections

Schedule a licensed inspector within the Purchase Agreement timeline. Consider specialized inspections (roof, plumbing, etc.) as needed. For commercial purchases, environmental audits or soil tests may be required. If inspections uncover issues, you can request renegotiation. Once satisfied, contingencies are removed.

Appraisals and Lending

Maintain close communication with your lender and provide requested documents promptly. If financing is conditional, a third-party appraiser will verify the property’s value. Confirm loan approval status with your lender two weeks before closing.

Association Approval

If the property requires association approval, request rules and required documents from the seller and adhere to the timeframe in the Purchase Agreement. The approval letter will be recorded with the deed at closing.

Property Insurance

Lenders typically require insurance. Homeowners purchase homeowners insurance; investors purchase landlord insurance. Policies protect against fire, theft, and certain weather events.