Seller and I just agreed on cash offer...now what??

[Jake Kilfian]

Hey whats up everyone? Just got verbal acceptance of my offer from a seller. He accepted my very low offer because I am paying cash. Now what? I have bought a house before but it was with a Realitor and financing. Now that I have a potential dea, I'm freaking out a little bit because I'm not sure what the next steps are. I schedueled an appointment with a real estate attorney tomorrow in hopes of writing out a purchase contract with him and get a better understanding of what I am doing. Any links or advice on what to do would be greatly appreciated.

[Bill Gulley]

I know by now you have a purchase contract, fill it in and get it signed.

It varies by local custom, but in your contract have the seller pay for title search and you pay the title insurance premium, he proves he can sell with good title and the policy is for your benefit. If this is not done in your area the title company can make the changes at settlement (or you can with the seller) and initial the changes at closing.

Call a title company agreeable to both of you and deposit your earnest money and order a title search and set up a closing date. Ask for a title committment be given the day before closing or ASAP. Take the contract, a copy, to the TI company. Ask them to provide the seller's disclosures required at closing.

You can use an attorney as well, just ensure he/she has an insured closing letter from the title company issuing the title policy. Otherwise, his bond covers the closing as legal services, might be harder to collect any damages from an attorney for errors in settlement.

Get the property inspected.

Call the utility companies and arrange for utilities to be changed on the closing date and have meters read for billings.

I assume the property is vacant, if not state the status.

Call your insurance agent and get a policy set up, don't pay the premium until you know it will close, then pay it and get a receipt for coverage. If it were financed you'd need to have that at closing, ask the title company if there is a requirement for coverage by local code.

Get the title committment and have the title agent explain it to you, look at schedule BII at exceptions and have those explained in detail and ask if there are any "clouds on title" being excepted out. Ask for the amount required to close, it will be more than the purchase price with costs.

If all is good, put insurance in place, give a final clearence for utilities if required, go to your bank before closing and get a certified funds check from the bank to the title company/closing agent in the amount they tell you that is required.

Try to set the closing in a late morning appointment. Like 11:00 or 10:30, this allows time to go to the property and do a final walk through, you're just checking that the property is the same as when contracted. It gives you time to swing by the bank as well. Doing so gives the title company to clear title the same day in most cases.

Show up, I like to have the seller go first, whatever the closer requires.

Review the final title policy being the same as the committment. Review the seller's disclosures. Review the General Warrany Deed that names are correct for title. Review the HUD-1 statement. If all is good hand the certified funds to the closer and sign the HUD-1.

Give the closer instructions not to disburse until final clearance of title is given. That should be in writing.

After closing the title company will run a final clearance to ensure no liens were filed from the time of the title committment to the time of filing your deed. Upon final clearance given then release funds for payment. Get the keys! For this, being an individual, you'll need to go back to the clsoing company that late afternoon or possibly the next morning. You do not allow funds to be disbursed without a final clearance!

Tie up lose ends, utilities and insurance. Basically those are the steps, your TI company will tell you what you need to do as locally required by law or custom. Go enjoy!

PS. If you're buying in a company name, the title company will tell you what you need. Make sure you enter in the Minutes of your entity the authorization for you to act in the purchase if applicable. :)