Common Obligations Post ClosingReal Estate Influence
August 16, 2013 — 2,305 views
Real estate deals are lengthy and, at times, turbulent processes. The purchaser of a certain property will be under the impression that once all the paperwork has been completed, they have signed the last dotted line, and paid the remaining cash, the deal is completed. However, the real estate agent has a number of post closing obligations that he or she needs to take care of in order to seal the deal.
Common Post Closing Obligations
There are a number of post closing obligations that can hinder the entire deal long after all parties involved in the deal have agreed. For instance, sometimes the original owner will request to stay in the home even after the sale has been completed. Documentation is essential, as always, and it is important to setup a Use and Occupancy Agreement. Some of the key points that need to be included in this document include – the daily amount that the seller will be paying in order to remain in the residence, utility bills that are going to be paid by the seller, as well as the promised date by which the seller will vacate.
Escrow is a common tool used to prevent any damage to the property. The agreement should also stipulate what happens if any damage incurred is worth more than the funds held in Escrow.
Inspection escrows and repair escrows are used when new home owners want to ensure that certain aspects of the house are in full working condition, but the ability to test them is limited by other mitigating factors. For instance, if the weather does not permit proper checking of the air conditioning system when the house is closing, a certain amount will be kept in escrow till the weather permits the new owners to test the working of the air conditioning system.
Points to Consider when Closing a Real Estate Deal
Closing a real estate deal is a mammoth task because of the fact that it is a huge step for both the seller as well as the buyer. It is essential to make sure that everything runs as smoothly as possible in order to avoid further complications to an already complex deal.
Review the entire loan and finance documents well in advance and ensure that everything is in order. Because of the fact that there are so many documents to rummage through, the chance for human error is greatly increased – and problems with documentation could be significantly problematic for you in the long run.
Ensure that your clients know the full details of closing day costs and do not fall short at the last minute. Because of the fact that personal checks are not usually permitted, make it a point to let your clients know their options with bringing the money to the closing such as through a certified check or the transfer of funds a little bit in advance.
Finally, closing the property will be a huge burden off the shoulders of the buyer and seller. However, the real estate agents work is not done. Filing papers and making sure that everything is in order is an essential part of the entire process as well.