If the appraisal comes in for less than the agreed sale price, the parties to the sale or purchase might have to take further action depending on the specific terms of the real estate contract.
There are many possibilities depending on the terms of the sale contract: the sale could be cancelled; the parties could renegotiate the price; the lender could require a higher down payment; or the lender could refuse to lend at all. It all depends on how the deal is structured.
Sometimes appraisals can be successfully challenged, but it is difficult to do.
Broker’s can own and operate a real estate brokerage office; agents cannot. An agent works under the supervision of a Broker and the Broker is generally responsible for the Agent’s work and for compliance.
Agents are Independent Contractors, not employees of the Broker.
Obtaining a Brokers’ license requires additional experience and education beyond that needed to obtain an Agent’s license.
Once all the real estate and financing transaction conditions of the contract have been met, the final paperwork can be executed and the ownership transferred. This is the last step in the “closing” process.
It includes the delivery of the deed to the Buyer, signing of loan notes and mortgage (if financed), disbursement of required funds to various parties and any other actions required to conclude the real estate purchase and sale.
A title company researches the property’s title, which is about the ownership rights in the property. It is critical to know who owns the property and if there are any restrictions on transferring that ownership.
A title company looks into the history of the property and confirms the current ownership, the type of ownership (individual, trust, corporate, etc.) of the property, identifies any liens or encumbrances or other “defects” or problems with the title.
Title companies also arrange for Title Insurance for the lender and the buyer. Title companies often handle all the legal filings and paperwork for closing on the property.
It can be, and many home buyers have created wonderful homes or investment properties from less than perfect “fixer upper” starting points. If you like working on rehab projects and have the time and money needed, it is worth considering.
But it can also be a money pit, so it’s very important to fully understand what you are getting into & add some contingency funds to any estimates you put together for the costs of rehab. It’s almost guaranteed that there will be some surprises in any rehab project.
Many foreclosures or auction properties qualify as “fixer uppers” and it can be difficult or impossible to determine the home’s maintenance or repair history. Owners and Realtors© often do not have any available information, so do appropriate due diligence.
At a minimum, due diligence on a fixer upper should include doing thorough inspections, hiring an engineer or architect if needed, estimating your materials costs, getting estimates from contractors for repairs you will not do yourself, and reviewing available building department property history records. And don’t forget to look into the permits that will be required while you are there.
A deed is a legally binding written and signed document that conveys title to real property. There are different types of deeds, including Quitclaim Deed, General Warranty Deed and Special Warranty Deed.
The deed is delivered at closing to the Buyer by the Seller. Different types of deeds have different legal implications, so it is important to understand what type of deed is being conveyed.
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