INSPECTIONS & APPRAISALS

The Process

Initial Agreement and Deposit

A signed purchase agreement is a legally binding arrangement between buyer and seller. To protect yourself throughout this stage:

• Keep written records of everything — including verbal agreements, counter-offers, and addendums. We assist in drafting all written documentation and provide copies for every party involved.
• Stay on schedule. Both buyer and seller will operate within a defined timeline to complete each phase of the closing process.

The Closing Agent

Once both parties have signed the contract, either a title company or an attorney steps in as the escrow or closing agent. The escrow agent is a neutral third party responsible for holding and distributing all transaction funds until the closing date. They will research the full history of the property to confirm the title is free of encumbrances — and that any new encumbrances are correctly recorded. All contingencies outlined in the Purchase Agreement must be satisfied before escrow can close.

How to Hold Title

There are several methods for holding title or ownership of a property. Each approach carries different implications for ownership transfer, financing, taxation, and estate planning. We strongly recommend consulting with a qualified attorney or tax advisor before deciding. We are happy to connect you with trusted professionals in both fields.

Property Inspections

As part of the contingencies in your Purchase Agreement, a licensed property inspector will evaluate the condition of the home within the agreed timeframe. You may choose to bring in multiple specialists — such as roofing or plumbing inspectors — for a more thorough assessment. For commercial properties, an environmental audit or soil test may also be required by the lending institution. If inspections reveal issues not addressed in the purchase agreement, you have the right to renegotiate the terms — typically the sale price. Once you are satisfied, the contingencies are removed and the process continues.

Appraisals and Lending

Stay in regular contact with your lender throughout this phase. If your Purchase Agreement is contingent on financing, the lender will require an independent appraisal conducted by a licensed third-party appraiser. The appraiser will assess the property's value based on factors such as building costs, square footage, operating income, and comparable sales. We recommend confirming with your lender two weeks before closing that your loan will be approved on time.

Association Approval

If the property is governed by a homeowners association, you may need the association's written approval before the sale can proceed. Request all rules, regulations, and required documents from the seller as early as possible. Once your approval is confirmed, the closing agent will request the original letter to be recorded with the deed in the county records.

Property Insurance

Property insurance is a critical layer of protection for any homeowner. Standard policies cover damages from fire, theft, and certain weather events. While not always legally mandated, most mortgage lenders require coverage as a condition of the loan. Depending on your intentions for the property, you will need either a homeowners insurance policy if you plan to live there, or a landlord insurance policy if you intend to rent it out as an investment.