SOLD! - What happens after a contract is accepted
You've found a house or a buyer has found yours and everyone has agreed on a price. So what happens between now and the time it becomes legally owned by you or another party? We understand the home buying process can be a little confusing. SO we've put together this information to help you better understand what happens after the sold sign is posted.
Step One - Earnest Money
Earnest money is a deposit made by the purchaser as a sign of good intent to purchase the property. An agreement to convey (or transfer the title) starts the process once it is received at the title company along with the earnest money. Loan application is made by the buyer, and approval is usually subject to a credit check, an appraisal, and, sometimes, a survey of the property.
Step Two - Tax Check
The title company then determines what taxes are owed on the property. The various assessor-collectors are contacted by the title company.
Step Three - Title Search
Copies of documents are gathered from various public records: deeds, deeds of trust, various assessments and matters of probate, heirship and divorce and bankruptcy are addressed.
Step Four - Examination
The title company now verifies the legal owner and the debts owed by the owner.
Step Five - Document Preparation
Appropriate forms are prepared for the transfer of title and settlement, or the formal transfer of ownership (commonly referred to as the closing).
Step Six - Settlement
An escrow officer oversees the closing of the transaction: the seller signs the deed, the buyer signs a new mortgage, the old loan is paid off and the new loan is established. The seller, real estate professionals, attorneys, surveyors, title company and others performing services for the buyer and seller are paid. Additionally, title insurance policies will then be issued to you and your lender.
Click Here to Download the PDF: Knoxville Title Closing Steps.pdf
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