Escrow, Inspections and Appraisal

5.1 Escrow
Escrow is the process that starts when your purchase offer is accepted by the seller. It ends when you become the new registered owner of the property.

5.2 Escrow Holder and Title Company
Typically, the listing agent’s office or the seller’s attorney will be the escrow holder. The lender’s attorney will research the complete recorded history of the property, to insure that the title is free and clear of encumbrances by the date of closing and that all new encumbrances are properly added to the title. Some properties are subject to restrictions which limit various activities such as building to parking restrictions. Also, there may be recorded easements and encroachments, which may grant others limited use of your property.

5.3 How to Hold Title
You may wish to consult with an attorney or tax advisor regarding the best way to hold title. Different methods of holding title have different legal, estate and tax implications, especially when selling or upon death of the title holder.

5.4 Inspections
Once your offer is accepted by the seller, you'll need to have professional inspectors evaluate your home's major systems. Your agent may recommend other inspections, such as roof, chimney/fireplace, property boundary survey, well, septic, pool/spa, arborist or mold.

5.5 Appraisal and Lending
Keep in close communication with your lender, who will let you know when additional documents are needed to approve your loan application and fund your loan. The lender will often send an appraiser out to the property and you may pay a fee for this service. Appraisers are specialists in determining the value of properties, based on a combination of square footage measurements, building costs, and recent sales of comparable properties. When you are within two weeks of closing, double check with your lender to be sure the loan will go through smoothly and on time.

For more information on these issues, contact an agent at Boston Choice Properties.