Inspections & Appraisals

The Closing Process — Step by Step

Initial Agreement and Deposit

Once an offer is accepted, an effective agreement — a legally binding arrangement between buyer and seller — is established. To keep the process moving smoothly:

• Keep written records of everything, including verbal agreements, counter-offers, and addendums. Our team will assist in drafting and distributing all documentation.
• Stay on schedule. Both parties will follow a defined timeline to complete every stage of the closing process.

The Closing Agent

After both parties sign the contract, a title company or attorney will serve as the escrow or closing agent, and your deposit will be submitted. The escrow agent is a neutral third party responsible for holding and distributing all funds until closing. They will conduct a full review of the property's title history to ensure it is clear of encumbrances, and that any new encumbrances are properly recorded. All contingencies in the Purchase Agreement must be satisfied before escrow can close.

How to Hold Title

There are several methods for holding title to a property, each carrying different implications for ownership transfer, financing, taxation, and estate planning. We strongly recommend consulting with a qualified attorney or tax advisor to determine the best approach for your situation. We are happy to connect you with trusted professionals in our network.

Inspections

As outlined in your Purchase Agreement, you will arrange for a licensed property inspector to evaluate the home within the agreed-upon timeframe. Inspectors assess the overall condition of the property and identify any existing issues. You may also choose to bring in specialists — such as roof or plumbing inspectors — for a more thorough review.

For commercial properties, an environmental audit or soil test may be required by your lending institution. If inspection findings reveal issues not previously disclosed, you have the right to request a renegotiation of the purchase terms. Once you are satisfied, contingencies are removed and the process moves forward.

Appraisals and Lending

If the Purchase Agreement is contingent upon financing, your lender will require a third-party appraisal to confirm the property's value. Appraisers evaluate factors including building costs, square footage, operating income, and comparable sales. Stay in regular contact with your lender throughout this stage, and confirm loan approval status at least two weeks before your closing date.

Association Approval

Some properties require approval from a homeowners or condominium association prior to purchase. If applicable, request all rules, regulations, and required documents from the seller early in the process. Once approved, your closing agent will secure the original approval letter for recording with the deed at closing.

Property Insurance

Most mortgage lenders require property insurance as a condition of financing. Depending on how you intend to use the property, you will need either homeowners insurance for an owner-occupied residence or landlord insurance for an investment rental property. Standard coverage typically protects against fire, theft, and certain weather-related events.