Close of Escrow

If you are approaching the time when you will close on escrow associated with a real estate sale, there are some important factors that you need to keep well in mind.  By understanding some underlying issues associated with the proper closing of escrow, you will be in the best possible position to ensure that there will be no problems associated with transferring ownership of the real estate in question to you.  Moreover, you will be able to avoid any unpleasant surprises that might raise their proverbial ugly heads after you actually take ownership of the real estate in question.

The primary buzzwords that you will want to keep in mind when it comes to the closing of escrow and the purchase of real estate are:  due diligence.

One of the most common problems associated with buying real estate of any type – including residential real estate – is the decision by many people to shortcut the entire purchase process, particularly the escrow closing process.  By this it is meant that a person involved in buying a home or some other type of real estate will forgo inspections and even independent appraisals when he or she is purchasing real estate.  They are eager to get possession of the real estate.

Such a strategy can have dire consequences for an individual who is buying a new home.  A person in such a situation can end up owning real estate that simply is not in the shape or condition that it appears to be on the surface.

When all is said and done, you simply cannot responsibly short circuit the process of due diligence.  You need to obtain inspections, an appraisal and everything else that is associated with a more traditional real estate sale to ensure that you have fully protected your own important interests.

You need to also bear in mind that when it comes to undertaking the due diligence that is associated with the closing of escrow, you absolutely must engage the services of qualified professionals.  You particularly need to look towards finding experienced professionals to assist you in three primary areas as part of the escrow closing process: 

• title issues
• inspection issues
• appraisal

In looking at title to real estate, you must make sure that an appropriate title search is undertaken (normally by a title insurance company or an attorney) to make certain that the title is clear and free of any encumbrances.  You also need to make certain that you obtain appropriate title insurance to protect you should any title problem appear in the future that was not identified during the title search or investigation process. 

You need to be certain that all necessary inspections of the property are made by qualified and experienced professionals prior to the closing.  You need to make certain that there is enough time to review inspection reports prior to closing to ascertain if there are problems with the property that should delay or cancel outright the escrow closing.

Finally, you must make certain that an independent and current appraisal of the property is made by a reputable, experienced and certified appraiser.