Extra FAQ
- What costs are associated with the sale of a home?
- What do I need to do to get my home ready to sell?
- Do I need an attorney to sell my home?
- What is a closing?
- What is the responsibility of the closing agent?
- What is title insurance?
- What is a title search?
- How does title insurance protect me?
What costs are associated with the sale of a home?
Some of the costs incurred in the sale of a home include:
- Repair expenses
- Sales commissions
- Closing costs from the title company
- Closing costs that you offer to pay on behalf of your buyer
- Moving expenses
What do I need to do to get my home ready to sell?
When you decide to sell your home, you need to determine what repairs need to be done that the buyer may request after an inspection or the village where you live may require before they authorize the sell. Many municipalities perform an inspection of your home and provide a report identifying the repairs (if any) which need to be completed before the municipality will allow the house to be sold. The municipality will typically charge a fee to the owner for an inspection and a tax for the actual sale of the home. Without paying the municipality fee, you may not be able to sell the home.
Do I need an attorney to sell my home?
The level of involvement of the attorney in the sell of your home differs in each state. In some states, attorneys are very involved in the real estate transaction, including negotiating the contract, preparing documents and attending the closings. In other states, attorneys may get involved only after the contract is negotiated but do not attend the closing. In many states, attorneys are rarely involved in residential sales and purchases until problems arise.
A closing is the transaction where ownership is exchanged for funds. These steps are overseen by a closing attorney who represents the interests of the lender.
What is the responsibility of the closing agent?
A closing agent is responsible for gathering all the information, documents, and reports necessary to complete a closing. These may include:
- Certificates for termite, carbon monoxide, and other inspections
- Home warranty documents
- Utility bill payoffs
- Attorney information
- Mortgage payoffs
- Homeowners insurance
- Commissions and earnest monies
A title insurance policy protects your property ownership rights. There may be undiscovered issues that were not unearthed by a title search. They can threaten your ownership if discovered after your closing. Issues may include:
- Undisclosed tax liens
- Forged deeds
- Erroneous legal descriptions
- Easement problems
- These are just a few of the numerous threats a homeowner without title insurance faces. Fortunately, title insurance costs you only a small one-time fee, with no subsequent annual payments.
A title search is a thorough investigation of all public records associated with a property. It ensures that the only thing you are buying is a new home, and not a slew of unforeseen legal or financial entanglements. Once the search is completed and all issues resolved, title insurance is issued. A title search can uncover:
- Unpaid taxes
- Unpaid mortgages
- Judgments against previous owners
- Easements
- Other court actions
- Documents that impact legal ownership of the property
How does title insurance protect me?
Should new issues emerge in the future that threaten your ownership of a property, your title insurance policy will cover the costs and labor of clearing the title. It will also pay for the cost of defending your title in court. Should the defense of your title be unsuccessful, your title insurance policy will pay you for your losses.
