Purchaser and Seller agree on a purchase price and sign a Purchase Agreement. Purchaser deposits the earnest money deposit money into an escrow account.
Note: If the Seller is doing a 1031 exchange, then contact 1031trx for additional contract language to include in the Purchase Agreement.
Contact 1031trx (if Seller 1031 Exchange)
If Seller is doing a 1031 exchange, now is the time to contact 1031trx to set up the exchange account.
Bank Appraisal/Purchaser's Financing
Purchaser's lender does an appraisal on the property.
If it comes in lower than the offered price, the lender will not issue a final loan commitment unless Purchaser comes up with the cash for the difference or Seller lowers the offered price to the appraised amount.
Purchaser Obtains Title Report & Title Insurance
Seller Disclosures/Purchaser Inspections
Seller cures any problems with the property that were addressed in the Purchase Agreement and/or Title Report.
Purchaser obtains necessary inspections (e.g., home inspection, pest inspection, environmental inspection).
Purchaser re-inspects the property right before the closing to make sure
no new damage has occurred and that the Seller is delivering the property pursuant to the Purchase Agreement.
Both parties sign paperwork related to the transfer and the closing funds are settled. Purchaser is given a new deed for recording at the county clerk's office.
Escrow Company wires the exchange funds to 1031trx.