We’ve made it this far. It’s time to start the closing process on your property.
Buyers, your offer for the home of your dreams has been accepted. Sellers, you’ve accepted the best offer and have started to move. Now, we get the Legal Eagle on board to make sure the bottom line is ready to sign.
I don’t really have an eagle on staff but I do have a list of fees, inspections, and title search that are required by Tennessee State Laws for all real estate transactions.
Escrow & Earnest Money
Earnest money is the lump sum of cash from the buyer to the seller. It’s held in escrow and applied to the closing costs and fees on the property. If the offer is not accepted or falls through, the money is returned to the buyer as the contract was not validated.
Property or Seller’s Disclosures and Inspections
The purpose of a property disclosure in Tennessee is to have the seller share the details of the systems or structure of the house. As a seller’s agent, we’ll go over this document at your listing appointment. Check out the REALTOR pre-listing disclosure form here. If you’re heavily considering a home, we can request the property disclosure and related documents to evaluate it further and prepare a competitive offer.
If the property you’re buying or selling was built before 1978, the house will need to comply with EPA standards for lead-based paint and related hazards.
As a buyer’s agent, I advise my clients to get their own inspections before closing on a property. It allows us to get a second opinion on repairs (needed or completed) and any issues of concern.
Then, depending on the results of the inspections, the purchase agreement may be renegotiated to reflect needed repairs and resulting changes to the closing costs.
Title Search Before Final Closing
In the state of Tennessee, it’s required for a real estate attorney to search for any issues with the deeds of the house in public record. I often work with Rudy Title for all of my closing transactions when I represent you as a seller.
The title search is essential for determining if there are any liens or easements tied to the property and/or home. My title company works through the deeds related to the property.
Signing The Bottom Line
After the inspections and title search are all clean, a date is set for the closing appointment. Typically this occurs at the title company’s office so that the documents can be filed for public record by the real estate attorney.
If you’re unable to attend the closing due to being out of town, we can reschedule the closing. If no other dates are available, we can designate someone as your power of attorney to sign for you.
The title company is also in charge of certifying the funds for the closing. This includes the down payment from the buyer. They will coordinate with you to get the appropriate banking and lender information.
After the signing, we will stay in touch. It’s always a pleasure to keep up with clients as they grow into a home and make it their own. You can always reach me on social media or through my newsletter.