Inspections & Appraisals

The Process

Initial Agreement and Deposit

A purchase agreement is a legal commitment between buyer and seller. Keep written records of all communications, counter-offers, and addenda. Meet the agreed schedule to maintain the transaction timeline.

The Closing Agent

A title company or attorney typically acts as escrow/closing agent, holding and disbursing funds and ensuring the title is clear of encumbrances before closing. All purchase contingencies must be satisfied before escrow can close.

How to Hold Title

Ownership can be structured in several ways, each with tax, financing, and transfer implications. Consult an attorney or tax advisor to determine the best approach.

Inspections

Schedule a licensed inspector within the agreed inspection period. Consider specialty inspectors for roof, plumbing, or other systems. Commercial purchases may require environmental audits or soil tests. If inspections reveal issues not covered in the agreement, you can negotiate terms or price adjustments. Once satisfied, contingencies are removed.

Appraisals and Lending

Stay in close contact with your lender for required documents. If financing is a contingency, the lender will order a third-party appraisal to confirm the property’s value. Check with your lender approximately two weeks before closing to confirm loan approval.

Association Approval

If the property requires association approval, request all rules and required documents from the seller and meet the agreed submission timeline. The approval letter will be recorded with the deed at closing.

Property Insurance

Lenders generally require property insurance. Choose homeowners insurance if you will live in the home or landlord insurance if the property will be rented.