What is the Process Like?
It all begins with you.
Each and every closing begins with finding your dream home. Once you have found the perfect property that you could see yourself living in forever, the first thing to do is cry a little bit. Next, you quickly gather your composure and submit an offer to the seller. The seller then has the opportunity to either accept, decline, or submit a counteroffer to you. Depending on the seller's response, this can go back-and-forth a couple of times before the offer is finally accepted.
Attorney Review
The Next Step Is Attorney Review
Once your offer is accepted, we review the contract with you and answer any questions that you may have. We then proceed to draft a letter to the seller's attorney with all of the fine points, details and terms that will govern the rest of the closing. Following this, the seller's attorney has an opportunity to either accept, reject or modify the terms of our proposal. Once everyone can agree upon the terms of the deal, you and the seller sign off on the attorney review letters. Now you are under contract!
Inspections
Next, Inspections are Conducted
The next step of the closing is to hire a licensed inspector to review the property for any defects. The inspection report is a comprehensive report detailing anything and everything about the house that may require repair. It will show any cracks, breaks, corrosion, or damage to the house, roof, basement, utilities and appliances. Upon receiving the inspection report, we will review it with you and negotiate with the seller the items which should be repaired in accordance with the contract. In certain cases, the buyer may elect to accept a credit instead of having the repairs made. Once the repairs (or a credit) are agreed upon, we can then move on to the next step.
Title Report
Title is Reviewed and Cleared
In the next phase, we order a comprehensive title report that details the specifics of the property's legal history. The title report shows many different aspects of the property, including the chain of ownership, as well as any liens, encumbrances or other issues affecting the property. The title report even shows any judgments that are outstanding against the seller. We then review the title report and clear and problems with the title company. Once the title company ensures you will receive clean, good and marketable title, we then begin preparing for closing.
Certificate of Occupancy
Next, we receive a Certificate of Occupancy
After inspections are made and a title policy has been issued, we apply for a Certificate of Occupancy with the township. In most municipalities in New Jersey, a Certificate of Occupancy is required upon the purchase of a property. The Certificate of Occupancy is the towns "stamp of approval" that the property is suitable for dwelling. If the house does not pass the first inspection, we negotiate with the seller to bring the house up to code and compliance. Once the repairs are made, the inspector can return, inspect the property and issue a Certificate of Occupancy.
Prepare for Closing
Finally, we Prepare for Closing
After a Certificate of Occupancy has been issued, we check with your lender to make sure your mortgage financing is set up and in place. We then coordinate with the seller, seller's attorney, seller's agent, lender and title company to set up a time and place for closing. Additionally, any documents or information that is required by any of the parties is obtained and disseminated. The seller then prepares the conveyance documents and we review them for accuracy and approval. Finally, a closing disclosure is prepared by the title company. The closing disclosure outlines each of the financial aspects of the transaction and shows exactly how the funds will be disbursed. Once the final closing disclosure is approved, we are then all set to close.
Closing Day (yay!)
Alas, Closing Day Arrives
After all of the anticipation, the closing can finally occur. All of the parties meet at the time and location mutually agreed upon. Remember, we will be there with you the whole time. At the closing, there are usually between 3 and 10 people that attend. In addition to you and us, typically the seller, seller's attorney, lender's attorney, and title officer are present. Occasionally the seller closes by mail and does not attend. Sometimes the real estate agents attend the closing.
Regardless, the process tends to remain the same. The closing documents are disseminated for final review and signature. Once everything has been signed, the funds are authorized to be disbursed. Upon confirmation the the funds have been disbursed, the keys are handed over to you. Congratulations!
Go Home and Relax
You've Earned It.
Last but not least, you now get to go home to your very own place and take a breather. After a long day with a lot going on, you've earned the right to block out the rest of the world and just let it all soak in. Sit down. Relax. Have a drink (or two) and enjoy the feeling of knowing you did it. You are now officially a homeowner!
