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The step by step process of real estate transactions

On Behalf of | Jan 6, 2022 | Estate Planning

Purchasing a home in a North Carolina real estate transaction is a unique process compared to buying other assets. It is not as simple as making an agreement to purchase and then exchanging the deed for the agreed upon amount of money. Buying real estate can be a complicated experience when issues are found that could jeopardize the transaction. It is important to be diligent when purchasing any real estate, and especially a home that is intended as a primary domicile or a rental property.

Securing financing

The first step for many homebuyers will be securing financing when they do not already have personal funding. Knowing the amount you may need to finance helps set a price range when selecting a residential real estate property.

Inspection

The next step should be a property inspection by a construction professional for potential problems or looming issues in the near future. This is especially important when buying older homes. Both the foundation and the roofing should be evaluated along with other structural components. The inspection should be done in detail, and may also include a radon gas evaluation along with an exact property line determination.

Title search

One surprise for many prospective buyers is learning there could be liens on a property. This will be revealed in a title search. Even a government agency will often move to recover taxes by potentially auctioning a home for the tax debt. Real estate property ownership is designated by a warranty deed that allows access based on the tax record and no other outstanding liens.

Once the agreement is notarized and the property purchase deal is complete, the funds for the purchase are placed in an escrow account. The money then sits in the account while the former owner makes arrangements to remove all personal belongings and clears the property for the new owners.