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    Stewart Title of California and the Stewart Title family of

    companies are dedicated to providing accurate and timely answers

    to your real estate and title questions. With over 9,500 policy-issuing

    offices and agencies across the nation and internationally, Stewart

    Title works as a partner with you and your real estate professional,

    providing the service, technology and tools that make your

    transaction go smoothly.

    Buying or selling a home is a big project wi th numerous steps.

    With more than a century of real estate and title experience,

    Stewart wants to make you feel comfortable wi th the process

    of buying or selling a home.

    This comprehensive buying and selling guide is a valuable

    resource whether youre buying your first home or selling your

    first investment property. We suggest using the checklists and

    worksheets to help familiarize yourself with the process, and that

    you use the pocket in the back of this guide to st ore documents

    youll need throughout the transaction.

    Its just another way that Stewart Title provides you with the tools

    you need and the services you trust. Good luck on your new venture.

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    ContentsT A B L E O F

    Homebuyers Guide

    Advantages O Home Ownership

    Home Buying Process Chart

    Step By Step Home Buying

    Financial Considerations

    Home Shopping Wants & Needs

    Step By Step Home Loans

    The Loan Process

    Loan Appointment Checklist

    Step By Step Property Taxes

    Property Tax Calendar

    Guide To Supplemental Taxes

    Homesellers Guide

    Advantages O Home Selling

    Home Selling Process Chart

    Step By Step Home Selling

    A Marketing Plan

    Home Selling Tips

    Closing Terminology

    General Inormation

    Guide To Escrow

    The Lie O Escrow

    Step By Step Title Insurance

    Lie O A Title Search

    What Title Insurance Covers

    Ways To Hold Title

    Closing Costs: Who Pays For What?

    Who Pays For What? By County

    Moving Checklist

    Important Inormation List

    Glossary O Terms

    Commonly Used Terms In Real Estate Transactions

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    Home OwnershipA D V A N T A G E S O F

    2

    Congratulations on your decision to buy a home! Whether you

    need a perfect place to make your own, more space for a growing

    family, or an investment opportunit y, the home buying process

    is an exciting time. Our home buying and selli ng guide is designed

    to help you understand the processes involved to make your

    transaction go smoothly.

    One of the biggest motivations for buying a home is

    financial. Buying a home is a sound financial decision for a

    number of reasons.

    Accumulation o Equity

    When you buy a house, your monthly mortgage payments mean that you gradually

    accumulate what lenders call equity. Equity is an ownership interest in the property that

    you can borrow against or convert into cash by selling your house. As a renter, you must

    continue paying rent to a landlord, without the opportunity to build equity. As a homeowner,

    your mortgage payments can help you create nancial reedom or yoursel.

    Stable Housing Costs

    Another advantage to home ownership is that mortgage payments can remain unchanged

    throughout the lie o your mortgage. Renters may ace an increase in rent payments year

    ater year. With a mortgage, your monthly payments remain the same over the years as other

    costs o living increase over time due to infation. As a homeowner, you have the advantage

    o knowing what your housing costs will be ar into the uture.

    Increased Value

    Houses typically increase in value, or appreciate, over time. Its not unusual to nd a house

    that sold or $150,000 teen years ago to be valued at much more today. This increase in

    value, or appreciation, is like money in the bank to you as the homeowner.

    Tax Benefts

    As a homeowner, you will enjoy signicant tax breaks that are not available to renters. The most

    important tax benet o home ownership is that interest paid on your home mortgage is usually

    deductible. This act alone can save you a substantial amount each year in ederal income taxes.

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    ProcessT H E H O M E B U Y I N G

    Begin The Process

    -Select Your Real Estate Proessional

    -Determine Your Budget &Get Pre-Approved

    -Find Your Perect Home

    -Make an Oer to Purchase

    -Review the Sellers Response

    -Purchase Agreement Accepted

    Open Escrow

    -Choose an Escrow & Title Company

    -Deposit Earnest Money

    -Enter the Contingency Period

    -Inspection & Appraisal o the Property

    -Receive Preliminary Property Report

    -Final Loan Approval

    -Obtain Homeowners Insurance

    Close Escrow

    -Deposit Funds or Down Payment & Closing Costs

    -Sign Loan Documents

    -Record Documents

    -Transer o Deed to Your New Home

    You Are Now A Proud Homeowner!

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    For your convenience,

    words that are bolded

    in the text appear in the

    glossary on page 35.

    Home BuyingS T E P B Y S T E P

    4

    tip*

    While the process of buying your home may seem overwhelming,

    you will have an entire team of professionals working on your

    behalf. Also, most home purchases follow a f airly standard

    process. By reviewing the items below, you will have a better

    idea of what to expect during the home buying process.

    Selecting Your Real Estate Proessional

    Building a trusting relationship with a real estate proessional is crucial. He or she will be

    working closely with you to nd the perect home to meet your unique needs. Real estate

    proessionals have extensive market knowledge. They also provide assistance and guidance

    throughout the buying process, rom nding a home throughout the close o escrow.

    Determining Your Budget & Getting Pre-Approved

    By meeting with a proessional lender beore you begin to look at properties, you will get an

    accurate idea o the mortgage amount that ts your budget. You may be surprised at the

    variety o loan options available today. A proessional lender can pre-approve your loan and

    give you the condence to make a strong oer once you nd the home o your dreams.

    Finding Your Perect Home

    Ater you nd a real estate proessional and a lender, you are ready to get out there and nd

    the perect home! Your real estate proessional can show you homes with the eatures you

    want, within your desired price range. The more details you can share with your real estate

    proessional, the more successul your search will be. For more assistance with deciding

    which eatures are important to you in a home, see the Home Shopping Wants & Needs

    worksheet on page 7.

    Making An Oer To Purchase

    Once you nd your dream home, your real estate proessional will drat apurchase agreement,

    advising you on customary practices, local regulations and any contingencies. Most purchase

    agreements are submitted with an earnest money deposit, usually ranging rom 1% to 3%

    o the purchase price. The earnest money deposit is not cashed until the seller accepts your

    oer. Your real estate proessional will present your oer to the sellers real estate

    proessional. The seller will then accept, counter or reject your oer.

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    Reviewing The Sellers Response

    You and your real estate proessional will review the

    sellers response, and in some cases, negotiate a new oer.

    Your real estate proessionals knowledge o the process

    and strong negotiating skills will help you reach the

    best agreement.

    Opening Escrow

    Once the purchase agreement is accepted and signed by

    all parties, your real estate proessional will open escrow

    or you. Your earnest moneywill be deposited at this time.

    Your escrow company will handle all unds associated

    with your transaction.

    Entering The Contingency Period

    This time period is specied in your purchase agreement

    and is used to obtain the ollowing items:

    Physical Inspection o Property

    Property Pest Inspection

    Property Appraisal

    Approval o Sellers Transer Disclosure Statement

    Preliminary ReportApproval rom Title Company

    In addition, during this time period, you will be able to:

    Satisy any Purchase Contingencies

    Secure a Lender

    Obtain Loan Approval

    Obtaining Homeowners Insurance

    In preparation or owning your home, you must provide

    a homeowners insurance policy that is in eect by the

    close o escrow. Your real estate proessional will work

    with your escrow company and insurance agent to ensure

    that your policy is in eect by the proper date.

    Depositing Funds For Down Payment

    & Closing Costs

    Beore escrow can close, you will need a cashiers check

    or wire transer in the amount o your down payment and

    closing costs. Your escrow company will provide a statement

    o estimated closing costs that shows this amount. For an

    explanation o closing costs, please see page 30.

    Signing Loan Documents

    Beore escrow can close, you will review and sign all loan

    documents rom your lender. This may be done at an

    appointment with your escrow company.

    Closing Escrow

    When all conditions o the purchase agreement have been

    met, you will then sign all o the closing documents. Ater

    you deposit the balance o your down payment and closing

    costs with the escrow company, and your lender has approved

    your nal loan documents, your lender will then deposit the

    balance o the purchase price. Next, the County Recorders

    oce will record the deed. You will then be the proud new

    owner o your home!

    Homeowners Insurance

    You need to have active homeowners

    insurance beore your loan is approved.

    To obtain a homeowners policy, check

    with the insurance agent that you

    already use or automobile or renters

    insurance. They may be able to oer

    you a discount or consolidating your

    insurance needs.

    5

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    7

    8

    9

    10

    11

    ?what is escrow

    Please see page 03 or a visual

    guide to the buying process.

    Escrow means that an impartial third party, the escrow

    company, handles all o the money and paperwork or

    both the buyer and seller in a home purchase. Your

    escrow company is a key member o your home buying

    team and will be an important resource or you.

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    Completing this

    inormation worksheet

    will help get the

    loan pre-approval

    process started.

    tip*

    Financial Worksheet

    It helps to review your own nances beore meeting with a mortgage lender to determine

    what price range you can aord. Your mortgage amount is only one actor that aects

    your home purchasing power. Other actors include your income, expenses, credit history,

    FICO score and the money you have available or a down payment. Proessional lenders are

    trained to nd a mortgage option suitable or most nancial situations. By sharing accurate

    and up-to-date inormation with your real estate proessional and lender, you enable them

    to do the best job or you on the way to nding your dream home! This worksheet will help

    you and your lender determine your mortgage options.

    ConsiderationsF I N A N C I A L

    6

    Name

    Address

    Home Phone

    Buyer 1 Buyer 2

    Work Phone

    Employer

    Address

    City / State / Zip

    Title

    Length o Employment

    Annual Income $ $

    Other Assets or Income $ $

    Have You Contacted a Lender?

    Lender Name

    Representative

    Approved Loan Amount

    Have You Received a Pre-Qualifcation Letter?

    Recent Credit Report No Yes I Yes, When?

    Closing Costs Estimate

    What Kind o Loan?

    Maximum Down Payment Available

    Source o Down Payment

    Maximum Monthly Payment Including Principal, Interest & Taxes

    Present Monthly Payment or Rent Amount

    Prepayment Penalty on Current Loan?

    Do You Need to Sell a Home in Order to Buy?

    Notes

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    Wants & NeedsH O M E S H O P P I N G

    LocationVery Somewhat Not Very

    Distance to: Important Important Important Important

    Work

    School

    Shopping

    Entertainment

    Cultural Centers

    Transportation

    Parks

    City Services

    Overall Location

    Other

    ExteriorVery Somewhat Not Very

    Important Important Important Important

    Landscaping

    Garden

    Side Access

    Paved Driveway

    Sidewalk

    Paint

    Windows

    Doors

    Porches

    Patio

    Roo

    Gutters

    Back Yard

    Front Yard

    Lighting

    Access

    Fencing

    Deck

    Garage/Carport

    Other

    InteriorVery Somewhat Not Very

    Important Important Important Important

    Bedrooms

    No./Size

    Baths/No.

    Square Footage

    Living Room

    Family Room

    Dining Room

    Kitchen

    Appliances

    Fixtures

    Laundry Room

    Walls/Ceilings

    Flooring

    Carpeting

    Attic

    Fireplace

    Layout

    Lighting

    Other

    SystemsVery Somewhat Not Very

    Important Important Important Important

    Security

    Heating

    Air Conditioning

    Ventilation

    Plumbing

    Electrical

    Energy Saving

    Insulation

    Overall Systems

    Other

    ExtrasVery Somewhat Not Very

    Important Important Important Important

    Swimming Pool

    Workshop

    Den / Ofce

    Hot Tub / Spa

    Other

    Type o Home1-Story New

    2-Story Existing

    Style

    Comments

    Wants & Needs Worksheet

    Your real estate proessional will work hard to nd your

    perect home. How does he or she know what to look or?

    By considering the inormation below and sharing it with your

    real estate proessional, he or she will be better prepared to

    nd your perect home.

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    Buying a home is an important financial decisi on. Your lending

    professional is a key member of the team of experts assisting you

    in your home purchase. By w orking with a professional lender,

    youll save time and money, and gain cri tical negotiating power.

    What Lending Proessionals Will Do For You

    A lending proessional will work with you to analyze your current nances and mortgage

    options to come up with the best home nancing options or you. By working with a lender

    beore looking at homes, you will have a better idea o what you can aord. This knowledge

    will make your real estate proessional more ecient, strengthen any oer you make, and

    improve your overall home buying experience.

    Many home loan options are available today. You can choose to work with a lender who

    works with one bank only, or you can choose to work with a loan broker. A loan broker

    works with many dierent nancial institutions and can shop or the best loan at the best

    price, allowing you to work with one proessional contact instead o doing all the shopping

    yoursel. Regardless o whether you rely on a lender rom a particular bank or a loan

    broker, a proessional lender will help you:

    Find the best loan options

    Fill out the application

    Obtain pre-approval

    Work with you throughout the escrow period to ensure timely approval and unding o

    your loan or a smooth home purchase

    Getting Your Loan Pre-Approved

    One o the most important steps a lending proessional can do or you is to provide

    pre-approval. A pre-approval means that the mortgage company agrees to provide

    nancing or your home purchase up to a certain amount. A pre-approval rom a lenderwill give you added condence and negotiating power as you make the oer to

    purchase your home.

    Home LoansS T E P B Y S T E P

    8

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    Completing A Loan Application

    The rst step in working with a lender is to complete a loan

    application which requires personal and nancial inormation.

    Use the Financial Considerations worksheet on page 6 to

    help you gather this inormation.

    Once the application is submitted, the lender will begin the

    process o veriying your inormation. Once your purchase

    oer is accepted and your home is in escrow, the lender will

    also veriy the inormation on the appraisal o your home.

    Obtaining Insurance

    Most lenders require that you obtain hazard/fre insurance

    or the purchase o a single-amily home. The lender will also

    require that you obtain title insurance and other items prior

    to the close o escrow. For a ull list o items required in order

    to close escrow, please reer to the Guide To Escrow on

    pages 24-25.

    Steps To Closing

    Ater your loan is approved and the loan documents are

    sent to your escrow company, the escrow company will

    prepare an estimated closing statement. This closing

    statement species the distribution o your purchase unds.

    Once all contingencies in the purchase agreement have been

    satised, you will complete and sign your escrow instructions

    as well as your nal loan documents. At this time, you will

    need to bring a cashiers check or closing costs and down

    payment unds. The lender will send your loan unds directlyto the escrow company.

    Ater you have signed all the necessary loan documents,

    the escrow company returns them to the lender or review and

    unding. This process usually takes a ew days. Ater nal

    review, the lender is ready to und your loan and inorms the

    escrow company. The loan is then unded and the deed o trust

    is recorded at the County Recorders oce. Escrow is now

    ocially closed and you are a new homeowner!

    Together, your real estate proessional, lender and escrow

    company will keep you inormed every step o the way. Your

    team can assist you to obtain all o the required items during

    the contingency period to ensure a smooth transaction.

    stewart.com

    Stewart Title is dedicated to helping makeyour home buying or selling experience

    easier. Please visit our website today or

    helpul inormation on fnding a title agent,

    property taxes and 1031 exchanges. Its just

    another way that Stewart Title gives you the

    tools you need and the service you trust.

    ?what is a FICO scoreYour proessional lender will use your FICO credit score to negotiate

    mortgage terms. This number evaluates your credit history.

    Higher scores represent lower credit risks, which can equate to

    better loan terms. There are many resources online that provide

    you access to your FICO score.

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    ChecklistL O A N A P P O I N T M E N T

    Making The Loan Process Easier

    To make it easier or your lender to get the loan process

    underway, you should bring certain inormation to your

    rst loan appointment. Helpul inormation includes the

    Financial Considerations worksheet on page 6, and the

    ollowing documentation:

    A valid state identication card or drivers license

    Verication o employment

    Two years o W-2 orms showing your annual pay

    A current bank statement veriying how much money you

    have available or a down payment and closing costs

    Your lender will also request other items, including:

    A credit report to show your credit history

    An appraisal on the property, once in escrow

    A preliminary report, once in escrow

    note*

    SureClose

    At Stewart Title, we know

    your time is valuable. Thats

    why we partnered with brokers and agents

    to develop SureClose, the uture o

    transaction management. With SureClose,

    you can login rom anywhere in the world

    to fll out orms, sign documents and get

    status notifcation on your title search as

    it happens. Visit www.stewart.com today

    to learn more about SureClose paperless

    transactions. Its just another way that

    Stewart Title gives you the tools you

    need and the service you trust.

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    Property Tax Defned

    Local governments, usually at the county level, administer property tax. Tax rates vary rom

    county to county and are based on a predetermined percentage o the assessed value o

    each individual property. Property taxes are paid in two installments each year.

    Property Tax And Escrow

    Depending on when you close escrow on your new home, the way that you pay your rst

    year o property taxes may vary. I your home is in escrow right ater a deadline or submitting

    a tax payment, your real estate proessional should request proo o that payment rom the

    seller. The preliminary report may show that property taxes are still due because it can take up

    to six weeks or a property tax payment to post. Proo o payment will address this issue.

    Options For Paying Property Tax

    Your lender can oer you an option or paying your property tax and insurance costs on

    a monthly basis. The nancial impact o a large tax payment twice a year can be reduced

    through an option called an impound account. Your lender can set up an impound

    account or you. The impound payment is collected with your monthly mortgage,

    principal and interest payment.

    The lender then pays the Tax Collector and the insurance company directly rom this account

    when the property tax installments and insurance premiums are due. Its important to discuss

    the nancial impacts o having an impound account with your lender. While this kind o

    account is not right or every home buyer, it can help some buyers manage their nances.

    Property Tax Payment Timing

    Property TaxesS T E P B Y S T E P

    2

    I You Close Escrow Remember These Tax Tips

    Between Your property tax bill may be orwarded to the sellersJanuary & October new address.

    I you do not receive your property tax bill by the middle o

    October, contact your Tax Collector and request that a

    duplicate tax bill be sent to you.

    You are still obligated to pay your frst property tax instal lment

    by the November 1st due date, even i you have not received

    a tax bill rom the county.

    Near December 10th I the seller has not yet paid property taxes, then the seller will

    need to make a check payable to the Tax Collector and then

    orward it to the escrow company.

    The escrow company will see that the title company orwards

    the property tax check to the county.

    Regardless o when you close escrow, the correct taxes must be paid on time.

    For important propertytax dates, please reer tothe Property Tax Calendaron page 13.

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    As a home buyer, you may receive a supplemental property tax bill ater you purchase your

    home. Most property taxes are based on the assessed value o a home at the time o

    purchase. Most likely, when you purchase your home, its assessed value will have increased

    since the previous owner(s) purchased it. Under state law, whenever there is a change o

    ownership, a supplemental assessment occurs. A new assessed value or your home may lead

    to an increase in the tax amount. To address any potential increase, the Tax Assessor may

    mail you a supplemental tax bill to make up the dierence.

    The supplemental bill is normally issued within six months ater the close o escrow. I you

    have an impound account with your mortgage company to pay taxes and insurance on a

    monthly basis, the supplemental tax bill is sent directly to you by the Tax Collector rather

    than to your mortgage company.

    Supplemental TaxG U I D E T O

    4

    SummaryB U Y E R S

    Buying a new home will be much easier i you have a team o

    trusted proessionals working or you every step o the way.

    Educating yoursel about the home buying process is an important

    rst step to ensuring that you nd the perect home, make a

    solid oer and get approved or the loan you need. With

    thoughtul planning, your home will establish the oundation

    o a sound nancial uture or you and your amily.

    Please reer to the sections at the end o this guide or additional inormation on escrow

    and title insurance, as well as a helpul glossary o real estate terms. Visit www.stewart.com

    today to learn more about Stewart products and services, or to access more detailed

    real estate inormation and resources.

    The content in this guide is intended to provide general inormation only. Every home

    transaction is dierent; please consult an attorney or real estate proessional or advice

    about your specifc transaction.

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    notes*

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    For your convenience,

    words that are bolded

    in the text appear in the

    glossary on page 35.

    tip*

    Home Sell ingA D V A N T A G E S O F

    6

    Making the decision to sell your home is personal. Whether

    youre relocating, moving to accommodate a growing family or

    simplifying your life for retirement, s elling is an involved process

    that takes careful planning. Our home buying and selling guide

    is designed to help familiarize you with t he process and give you

    helpful hints to ensure that your home sells quic kly for your

    top asking price.

    If youve owned your home for a substantial amount of t ime, or if

    the market has grown significantly since your purchase, you have

    equity, the biggest opport unity that home ownership provides.

    Before selling your property, talk to your accountant and real

    estate professional about the reasons for selling your home. He or

    she will be able to help you decide the best fi nancial strategy.

    Buying A Larger Home

    I you own a home, you may want to cash in on the equity and increased market value to

    create a down payment on a larger home or a home in a more desirable area. In this situation,

    special considerations must be made prior to selling to ensure that you and your amily

    transition smoothly rom one home to the next. You may also want to speak with your

    accountant about the tax benets and timerames involved with 1031 exchanges.

    Relocating To A New State

    Relocation is another common reason or selling. In this situation, you will want to sell your

    home quickly to avoid paying a mortgage on an empty house. Your real estate proessional

    will help you determine the price and marketing plan that will help you sell quickly.

    Downsizing For RetirementYou may have ound that your children are out on their own, you have more room than you

    need, or that your house has signicantly increased in value! This may be motivation or you

    to sell your home, move into a more modest home or condominium, or add to your retirement

    nest egg. Downsizing is another good opportunity to speak with your accountant. He or she

    can help you plan or this transition in a way that helps you avoid large capital gains taxes.

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    ProcessT H E H O M E S E L L I N G

    Begin The Process

    -Select Your Real Estate Proessional

    -Decide When to Place Your Homeon the Market

    -Research Comparable Properties

    -Decide on an Asking Price

    -Market Your Home to Potential Buyers

    -Place Your Home on the Market

    -Review Buyers Purchase Oer

    -Present Your Response to thePurchase Oer

    Open Escrow

    -Buyer Deposits Earnest Money

    -Enter the Contingency Period

    -Buyer Obtains Inspection & Appraisal o the Property

    -Final Loan Approval

    Close Escrow

    -Buyer Deposits Funds or Down Payment & Closing Costs

    -Sign Loan Documents

    -Record Documents

    -Transer o Deed to Buyer

    Your Transaction is Complete!

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    Staging, or beautiying,

    your home to potential

    buyers can increase its

    value. See Home Selling

    Tips on pages 20-21.

    tip*

    Putting your home on the market is a big step. The expertise of

    your real estate professional will make the process much easier for

    you and your family. Fortunately, selling a home is a fairly standard

    process. By reviewing the items below, you will have a better idea

    of what to expect during the process of selling your home.

    Meeting & Selecting Your Real Estate Proessional

    Your real estate proessional is a crucial part o your home selling team. He or she will assist

    you throughout the transaction with the ollowing:

    Deciding your asking price

    Marketing your home to qualied buyers

    Completing the required transaction documents

    Negotiating with any buyers who submit an oer to purchase your home

    Deciding When To Place Your Home On The Market

    Your real estate proessional will help you determine the best time to place your home on the

    market. They will also provide sound advice as you determine an asking price based on:

    Research o comparable propertiesConsideration o current local market conditions

    Your needs and reasons or selling

    Marketing Your Home To Potential Buyers

    When placing your home on the market, your real estate proessional will help make

    your home more attractive to potential buyers. Your real estate proessional may make home

    improvement or decorating suggestions to improve the appeal o your home. He or she will

    also coordinate with you and other real estate proessionals to arrange showings o

    your home to qualied buyers. For more tips on how to improve the appeal and value o

    your home, please reer to the Home Selling Tips on pages 20-21.

    Home Sell ingS T E P B Y S T E P

    8

    Please see page 17 or a visualguide to the selling process.

    1

    2

    3

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    Reviewing The Buyers Purchase Oer

    Once an oer is made, your real estate proessional will

    review the oer with you and help you prepare a response to

    that oer. Your real estate proessionals strong negotiating

    skills and knowledge o this process will help you reach the

    right agreement.

    Presenting Your Purchase Oer Response

    With the assistance o your real estate proessional, you may

    accept, counter or decline the purchase oer. This process may

    take anywhere rom a ew days to a week, depending on the

    time deadlines specied in your response to the buyers oer.

    Opening Escrow

    Escrow is opened and the buyers earnest money will be

    deposited at this time. Your escrow company will handle

    all unds associated with your transaction.

    Entering The Contingency Period

    This time period is specied in your purchase agreement.

    During this time, the buyer works to satisy contingencies

    to the purchase agreement, such as obtaining a property

    inspection and an appraisal. You will work with your real

    estate proessional to ensure that all o the transaction

    documents are completed and provided to the buyer or

    review. Transaction documents can include:

    Real Estate Transer Disclosure Statement

    Physical Inspection o PropertyProperty Pest Inspection

    Other Disclosure Forms

    Closing Escrow

    When all conditions o the purchase agreement have been

    met, you will sign all o the closing documents. The transaction

    is completed when the buyers lender unds the loan and the

    existing mortgage on the home is paid o. Next, the County

    Recorders oce will record the deedin the buyers name, and

    your home transaction will be complete!

    A marketing plan is one o the most important services your

    real estate proessional will provide. Its a good idea to ask

    your real estate proessional how he or she plans to market

    your property beore you begin the selling process.

    Marketing plans may include:

    Placing a For Sale sign on your property

    Placing a lockbox on your ront door or other location to

    enable other real estate proessionals to show your hometo interested buyers

    Listing your home with the local MLS (multiple listing service),

    to maximize exposure to other real estate proessionals

    Arranging tours o your home by other real

    estate proessionals

    Creating a brochure or fyer highlighting the eatures

    o your home

    Hosting Open Houses at your home

    Advertising your home on the internet, in localnewspapers or other publications

    Your real estate proessional may have more ideas about how

    to gain exposure or your home among qualied buyers.

    A portion o money provided to the seller or escrow company by

    the buyer with a written purchase oer. Earnest money is

    intended as evidence o the buyers good aith. It is deposited

    with the escrow company once the purchase agreement is

    executed, and is applied towards the purchase price o the home.

    ?what is earnest money

    PlanA M A R K E T I N G

    4

    5

    6

    7

    8

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    Living Areas

    Make sure wall suraces are in good shape.

    Repair all cracks and nail holes.

    Wash the windows.

    Replace cracked or broken glass and torn screens.

    Make sure windows open and close smoothly.

    Check ceilings or leak stains. Fix the source o the leak,

    repair the ceiling and repaint.

    Replace aded curtains or bedspreads.

    I you have a replace, clean it out and put in resh logs.

    Replace burned-out light bulbs and make sure light

    switches work.

    Clean foors and vacuum rugs and carpeting.

    Fix any doors or sliding glass doors that stick.

    Keep toys in the kids rooms.

    Garage

    Clean out your garage and dispose o

    anything you are not going to keep.

    Make sure the garage door opener is in good

    working condition.

    Outside

    Make sure the ront door and entry area are

    clean and welcoming. Repaint the ront

    door i necessary.

    Keep the lawn and shrubs trimmed and neat looking.

    Freshly-planted fowers add an attractive and inviting touch.

    Sweep walkways and/or driveways.

    Consider painting your house. This can do more to improve

    the appeal o your home than any other item. I you dont

    want to paint the whole house, consider touching up trim,

    window rames and/or shutters.

    Check the roo and gutters. Replace any missing shingles,

    broken gutters or downspouts.

    Preparing For A Showing

    Open the draperies and window coverings to

    let in light.

    Empty trash cans throughout the house. Make sure

    outdoor trash cans are sealed properly.

    Keep radios, stereos and TVs o or at a very low volume.

    Remember the importance o scent: consider burning lightly

    scented candles, or baking cookies to ll your home with an

    appealing scent.

    I your real estate proessional has scheduled a showing or an

    Open House, make arrangements or you and your amily

    to be out o the house. Let your real estate proessional discuss

    the price, terms, possession and other actors with the

    potential buyers.

    Take pets outdoors or with you when your house is

    being shown.

    Let the buyers real estate proessional show your home tothe potential buyer. He or she knows the buyers requirements

    and can emphasize the appropriate eatures o your home.

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    TerminologyC L O S I N G

    2

    SummaryS E L L E R S

    Selling your home will be much easier i you have a qualied real

    estate proessional assisting you and your amily throughout the

    process o pricing, marketing and negotiating the sale o your

    home. Its important you understand the home selling process so

    that you can consider all o the steps necessary to sell your home

    quickly or your desired price. With thoughtul planning, selling your

    home can be a large step toward reaching your nancial goals.

    Visit www.stewart.com today to learn more about Stewart products and services, or to access

    more detailed real estate inormation and resources.

    Closing costs are an accumulation of separate charges paid to

    entities such as title companies, lenders, escrow companies and real

    estate professionals for the services they provide. Your real estate

    professional will review these and other closing costs with you

    before your transaction is completed.

    Title Insurance Premiums

    Fee paid by an individual to insure a clear title.

    Commission To Real Estate Proessionals

    Fee paid to real estate proessionals or services provided to list, show, negotiate the

    purchase agreement and complete the transer o property.

    Recording Fees

    Fees assessed by the County Recorders oce or recording the documents o a real

    estate transaction.

    Loan Fees

    Fees charged by a lender to process a new loan. This may include points and/or ees

    or loan origination and credit reporting.

    Escrow Fees

    Fees charged by an escrow company or services to collect, hold and eventually disburse

    unds and documents as required to complete the real estate transaction.

    The content in this guide is intended to provide general inormation only. Every home

    transaction is dierent; please consult an attorney or real estate proessional or advice

    about your specifc transaction.

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    EscrowG U I D E T O

    4

    For an explanationo closing costs,

    please see ClosingTerminology onpage 22.

    After a selling price has been negotiated between the buyer and seller,

    an escrow company steps in as an impartial third party to process and

    oversee the money and documents involved in transferring ownership.

    The escrow company works with you throughout the closing process

    to ensure that the legal transaction goes smoothly.

    Opening Escrow

    Your real estate company will open escrow or your transaction as soon as the buyer and

    seller have signed the purchase agreement or the home. The buyer and seller will sign escrow

    instructions, which list the contingencies rom the purchase agreement and any other

    requirements or escrow to close.

    Preliminary Paperwork

    Your escrow company will require you to ll out astatement o identity orm. The statement

    o identity orm is used to eliminate judgements, bankruptcies and liens that may be led against

    persons with similar names to the buyer or seller. Your escrow company keeps the statement o

    identity orm condential.

    The Escrow Companys Role

    While your home is in escrow, the escrow company will do the ollowing:

    Handle any adjustments on re insurance, property taxes, interest, etc.

    Contact the buyers lender to coordinate loan unding

    Coordinate payo o the sellers mortgage

    Forward the deed to the County Recorder or recording in the buyers name

    Handle nal accounting and disbursement o any remaining unds to all parties

    Issue an ocial closing statement (HUD 1)

    Who Is Involved In The Escrow Process

    Seller SellersReal EstateProessional

    BuyersReal Estate

    Proessional

    BuyersLender

    Title & EscrowRepresentative

    Buyer

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    IN

    FO

    RM

    ATIO

    N

    EscrowT H E L I F E O F

    Terms O Sale Are Put Into Contract

    Buyer Provides Initial Deposit & Escrow Opens

    Preliminary Escrow & Title Documents Prepared

    Seller Deposits The Deed With Escrow

    Escrow Company Finalizes & Manages Documents

    Buyers Mortgage Funds

    Escrow Company Issues Ofcial Closing Statement

    & Disburses Any Remaining Funds

    notes*

    Funding The Down Payment

    In most home transactions, the buyer will deposit a down

    payment and the seller will deposit the deed and other

    necessary documents with the escrow company. Prior to close

    o escrow, the buyer deposits the balance o required unds,

    through a mortgage, with the escrow company.

    Closing Escrow

    The length o your escrow period may range rom a ew

    days to several months. You and your real estate company

    will work together to determine the best timerame or your

    needs. The timerame will be specied in the terms o the

    purchase agreement.

    Escrow will be completed once all parties have signed the

    escrow documents, all contingencies in the purchase

    agreement have been satised and removed, the buyers loan

    has unded and ater the deed transerring ownership has

    been led with the county. The close o escrow signies legaltranser o title rom the seller to the buyer, ater which the

    buyer will receive the keys to their home.

    Buyer & Seller Sign/Complete Escrow Documents

    Ownership Transer Deed Is Filed With

    County Recorder

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    Purchasing title insurance

    is the best way to prevent

    uture problems with

    your title.

    tip*

    Title InsuranceS T E P B Y S T E P

    6

    When purchasing real estate, you acquire title to the property. This

    title includes your rights of ownership and possession of the land.

    Sometimes, however, your rights to the property can be limited due

    to claims asserted by others. These potential claims, if not caught

    and corrected before you buy, can limit your title to the property,

    have a negative impact on the value of your home and threaten the

    interest that you and your mortgage lender hold in the property.

    Acquiring Title Insurance

    Title insurance is a welcome security blanket or home ownership because o the

    signicant investment you make when buying a home. Purchased as a one-time expense,

    title insurance covers you against loss due to potential pre-existing liens and hazards that

    may not be uncovered in a general title search.

    The Importance O A Title Search

    Despite the expertise and dedication that go into a title search, hidden title deects can

    emerge ater completion o a real estate transaction, leaving you without a clear title.

    Title deects can be an unpleasant and costly surprise. Some examples include:

    Previously undisclosed heirs with claims against the property

    A orged deed that doesnt transer title to real estate

    Instruments executed under expired or abricated power o attorney

    Mistakes made in public records

    Title insurance through a company like Stewart Title is a simple step you can take to

    protect yoursel against loss or damage due to potential problems with your title. Ask your

    real estate proessional to learn more about this valuable service.

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    Title Insurance CoversW H A T

    8

    There are different types of title insurance policies that c an be

    purchased by the buyer, seller or by the lender. Title insurance is

    typically issued in the amount of the real est ate purchase.

    For an in-depth explanation o title insurance, and or assistance in choosing the policythat is right or you, please work with your real estate proessional and your StewartTitle representative.

    CLTA/ALTA Homeowner Policy

    Intended ToInsure an institu-tional lender undera deed o trustupon any type oreal property(commercial, indus-trial, residential)against thosematters coveredunder the policy.

    What It Covers

    Title to the estate or interestbeing vested other than asstated therein.

    Any defect in or lien orencumbrance on the title.

    Unmarketability of the title.

    Lack of a right of access to andfrom the land.

    The priority of any lien orencumbrance over the lien of theinsured mortgage.

    Intended ToInsure the ownero residentialproperty againstloss by reason othose matterscovered underthe policy.

    ALTA Loan Title Insurance Policy

    Cannot use land for Single FamilyDwelling because the use wouldviolate a restriction in Schedule Bor a local zoning ordinance.

    Pays rent for substitute landor facilities.

    Unrecorded lien by a homeowners

    association.

    Building permit violation.

    Compliance with SubdivisionMap Act.

    Restrictive covenant violations.

    Post policy forgery.

    Post policy encroachment.

    Post policy damage from mineral orwater extraction.

    Post policy living trust coverage.

    Map not consistent with the legaldescription.

    Post policy adverse possession.

    Post policy prescriptive easement.Covenant violation resultingin reversion.

    Boundary walls and fenceencroachment.

    Enhanced marketability.

    Violations of building setbacks.

    Discriminatory covenants.

    Insurance coverage forever.

    What It Covers

    Plain language.

    Post policy automatic increase invalue up to 150%.

    Title to the real property owned bya person other than the insured.

    Defects, liens and encumbrances

    upon title that are not recorded.Lack of a right of access to andfrom the real property.

    Insuring that there are noforgeries or failed conveyancesin the chain of title.

    Protection against mechanics liensresulting from work done on thereal property that the insured didnot agree to pay for.

    Rights under unrecorded leases.

    Unrecorded easements.

    There are restrictive covenants.

    There is a lien on your titlebecause (1) a deed of trust,

    (2) a judgement, tax or specialassessment, (3) a charge by thehomeowners association.

    Title is unmarketable.

    Forced removal of a structurebecause it (1) extends on to otherland or easement, (2) violatesa restriction in Schedule B,(3) violates an existing zoning law.

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    Who Pays For What?C L O S I N G C O S T S

    0

    The Seller Typically Pays: (these will vary pursuant to local custom and practice)

    Commission to real estate proessionals involved in the transaction

    One-hal o the escrow ee

    Document preparation ee

    Document transer tax

    City transer/conveyance tax (according to contract)

    Any loan ees as required by buyers lender

    Balance o all mortgages/loans in sellers name

    Interest accrued to sellers lender during escrow, beore ownership transers to buyer

    Any loan prepayment penalties

    Termite inspection and work (according to contract)

    Home warranty (according to contract)

    Any judgments, tax liens, etc., against the seller

    Property tax proration (or unpaid taxes up to time o transer o title)

    Any unpaid homeowners association dues

    Any homeowner association document fee (to obtain a copy of theCC&Rs or other documentation)

    Any and all delinquent taxes

    Notary ees or sellers documents

    Courier ees or sellers documents

    The Buyer Typically Pays: (these will vary pursuant to local custom and practice)

    Title insurance premiums

    One-hal o the escrow ee

    Notary ees or buyers documents

    Recording charges or all documents in buyers name

    Property tax proration (rom the time that ownership transers to buyer)

    Homeowners association transer ee

    All new loan charges (except those required by lender or seller to pay)

    Interest on new loan rom date o unding to 30 days prior to rst payment

    Inspection ees (property inspection, geological inspection, etc.)

    City transer/conveyance tax (according to contract)

    Fire insurance premium or rst year

    Courier ees or buyers documents

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    Who Pays For What? B Y C O U N T Y

    IN

    FO

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    County Escrow Title Fees County Transer Tax City Transer TaxCharges (Owners Policy) (Per Thousand) (Per Thousand)

    Alameda Buyer pays Buyer pays Seller pays $1.10 50/50*

    (Except in the City o Alameda $5.40

    Alameda - 50/50) Albany $11.50

    Berkeley $15.00

    Hayward $4.50

    Oakland $15.00

    Piedmont $13.00

    San Leandro $6.00

    Alpine (Calaveras Side) 50/50 50/50 Seller pays $1.10 None

    Alpine (El Dorado Side) 50/50 Buyer pays Seller pays $1.10 None

    Amador 50/50 Buyer pays 50/50 $1.10 None

    Butte (Chico & Oroville) 50/50 50/50 Seller pays $1.10 None

    Butte (Paradise) 50/50 50/50 Seller pays $1.10 None

    Calaveras (Bear Valley) 50/50 Buyer pays Seller pays $1.10 None

    Calaveras (San Andreas) 50/50 50/50 Seller pays $1.10 None

    Colusa 50/50 50/50 Seller pays $1.10 None

    Contra Costa Buyer pays Buyer pays Seller pays $1.10 50/50

    El Cerrito $7.00

    Richmond $7.00

    San Pablo $4.40

    Del Norte 50/50 Seller pays Seller pays $1.10 None

    El Dorado 50/50 50/50 Seller pays $1.10 None

    Fresno 50/50 Seller pays Seller pays $1.10 None

    Glenn 50/50 50/50 Seller pays $1.10 None

    Humboldt 50/50 Seller pays Seller pays $1.10 NoneImperial 50/50 Seller pays Seller pays $1.10 None

    Inyo 50/50 Seller pays Seller pays $1.10 None

    Kern 50/50 Seller pays Seller pays $1.10 None

    Kings 50/50 Seller pays Seller pays $1.10 None

    Lake Buyer pays Buyer pays Seller pays $1.10 None

    Lassen 50/50 50/50 Seller pays $1.10 None

    Los Angeles 50/50 Seller pays Seller pays $1.10 Seller pays

    Culver City $4.50

    Los Angeles $4.50

    Pomona $2.20

    Redondo Beach $2.20

    Santa Monica $3.00

    Madera 50/50 Seller pays Seller pays $1.10 None

    Marin Buyer pays Buyer pays Seller pays $1.10 Seller pays

    San Raael $2.00

    Mariposa 50/50 50/50 Seller pays $1.10 None

    Mendocino Buyer pays Buyer pays Seller pays $1.10 None

    Merced 50/50 50/50 Seller pays $1.10 None

    Modoc 50/50 50/50 Seller pays $1.10 None

    Mono 50/50 Seller pays Seller pays $1.10 None

    Monterey (Salinas) 50/50 Seller pays Seller pays $1.10 None

    Monterey (Peninsula) Seller pays 50/50 Seller pays $1.10 None

    Napa Buyer pays Buyer pays Seller pays $1.10 None

    Nevada 50/50 Buyer pays Seller pays $1.10 None

    Continued on page 32* 50/50 = Buyer Pays 50%, Seller Pays 50%To veriy that the above numbers are current at the time o purchase or sale, please confrm them with your escrow company.

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    2

    County Escrow Title Fees County Transer Tax City Transer TaxCharges (Owners Policy) (Per Thousand) (Per Thousand)

    Orange 50/50* Seller pays Seller pays $1.10 None

    Placer 50/50 Seller pays Seller pays $1.10 None

    Plumas 50/50 50/50 Seller pays $1.10 None

    Riverside 50/50 Seller pays Seller pays $1.10 Riverside $1.10

    City o Riverside $1.10Sacramento Seller pays Seller pays Seller pays $1.10 50/50

    Sacramento $2.75

    San Benito Seller pays Seller pays Seller pays $1.10 None

    San Bernardino 50/50 Seller pays Seller pays $1.10 None

    San Diego 50/50 Seller pays Owners Seller pays $1.10 None

    Buyer pays Lenders

    San Francisco Buyer pays Buyer pays Seller pays n/a Seller pays

    $100.00 - $250.00 $5.00

    $251.00 - $1,100.00 $6.80

    1,101.00 and up $7.50

    San Joaquin 50/50 50/50 Seller pays $1.10 None

    San Luis Obispo 50/50 Seller pays Seller pays $1.10 None

    San Mateo Buyer pays Buyer pays Seller pays $1.10 50/50

    Hillsborough $0.30

    San Mateo $5.00

    Santa Barbara 50/50 Seller pays Seller pays $1.10 None

    Santa Clara Seller pays Seller pays Seller pays $1.10 50/50

    Mountain View $3.30

    Palo Alto $3.30

    San Jose $3.30

    Santa Cruz 50/50 50/50 Seller pays $1.10 None

    Shasta 50/50 50/50 Seller pays $1.10 None

    Sierra 50/50 Seller pays Seller pays $1.10 None

    Siskiyou 50/50 50/50 Seller pays $1.10 None

    Solano Buyer pays Buyer pays Seller pays $1.10 Seller paysVallejo $4.30

    Sonoma Buyer pays Buyer pays Seller pays $1.10 Seller pays

    Cloverdale $1.10

    Cotati $1.90

    Petaluma $1.15

    Santa Rosa $2.00

    Sebastopol $2.00

    Stanislaus 50/50 Seller pays Seller pays $1.10 None

    Sutter Seller pays Seller pays Seller pays $1.10 None

    Tehama 50/50 50/50 Seller pays $1.10 None

    Trinity 50/50 50/50 Seller pays $1.10 None

    Tulare 50/50 Seller pays Seller pays $1.10 None

    Tuolumne 50/50 50/50 Seller pays $1.10 None

    Ventura 50/50 Seller pays Seller pays $1.10 None

    Yolo (Davis) 50/50 50/50 Seller pays $1.10 None

    Yolo (Woodland) 50/50 50/50 Seller pays $1.10 50/50

    Woodland $1.10

    Yuba Seller pays Seller pays Seller pays $1.10 None

    Continued rom p31

    * 50/50 = Buyer Pays 50%, Seller Pays 50%To veriy that the above numbers are current at the time o purchase or sale, please confrm them with your escrow company.

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    ChecklistM O V I N G

    Closing Statement

    Your escrow company will issue a

    detailed closing statement that lists all

    fnal closing costs or your transaction.

    Inorm Parties O Address Change

    Credit card companies, lenders and other companies you

    do business with

    Post oce

    Magazine subscriptions

    Friends and relatives

    Insurance companies

    At The Bank

    Transer unds as neededOrder checks with your new address

    Arrange credit reerences

    Change Service With Utility Companies

    Gas

    Electricity

    Telephone

    Cable

    Water

    Garbage collection

    Medical (i moving a long distance)

    Ask or copies o medical and dental records rom your

    medical providers

    Ask your doctor and dentist or reerrals

    Transer prescriptions to new pharmacy as needed

    Ask or copies o prescriptions or medication and eyeglasses

    Children

    Ask or copies o childrens vaccine records

    Take copies o school transcripts with you

    Make arrangements or new daycare acility i needed

    Pets

    Check on regulations or licenses, vaccinations, tags, etc.

    in your new location

    Plan or special care and transer o pets

    Moving Company

    Hire movers

    Review labor charges or packing, unpacking and moving

    Conrm arrival date

    Conrm method and time o expected payment

    Carry jewelry and important documents with you

    Beore You Leave

    Derost the reezer and clean the rerigerator

    Have appliances serviced and prepared or moving

    Have large area rugs wrapped and prepared to move

    Double-check closets, drawers and shelves or orgotten items

    Leave all keys, appliance warranties, association guides and

    other items or new owner

    At Your New Home

    Double-check that all utilities have been turned on

    Contact your local gas company to check pilot light on stove,

    hot water heater and urnace

    Have all appliances inspected by a proessional

    Contact your local DMV to update the address on your

    drivers license

    Make arrangements or new medical services and other

    proessional services i needed

    A List o Things to Do Beore You Move

    IN

    FO

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    Having important

    inormation handy can

    help ensure a smooth

    transition into your

    new home.

    tip*

    Real Estate Proessional

    Name

    Company

    Address

    City / State / Zip

    Work Phone

    Cell Phone

    Email

    Notes

    Title & Escrow Representative

    Name

    Company

    Address

    City / State / Zip

    Work Phone

    Cell Phone

    Email

    Notes

    Moving Company

    Name

    Company

    Address

    City / State / Zip

    Work Phone

    Cell Phone

    Email

    Notes

    Insurance Company

    Name

    Company

    Address

    City / State / Zip

    Work Phone

    Cell Phone

    Email

    Notes

    Hospital / Physician / Veterinarian

    Name

    Company

    Address

    City / State / Zip

    Work Phone

    Cell Phone

    Email

    Notes

    Pharmacy

    Name

    Company

    Address

    City / State / Zip

    Work Phone

    Cell Phone

    Email

    Notes

    InormationI M P O R T A N T

    4

    The following are some important contacts you may need during

    your transition.

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    GlossaryB U Y I N G + S E L L I N G

    CC&Rs

    Covenants, conditions and restrictions. A document that

    controls the use, requirements and restrictions o a property.

    Closing Costs

    Necessary expenses accrued during the course o a real estate

    transaction, such as loan ees, title ees, appraisal ees,

    escrow ees, etc.

    Closing Statement

    The nal statement provided by your escrow company that

    accounts or all o the unds received and due at the closing,

    including deposits or taxes and re insurance. The orm

    used or the closing statement is called the HUD 1.

    Contingencies

    Contingencies can be ound in the purchase agreement. A

    contingency is the dependence upon a stated event that must

    occur beore a contract is binding. For example, purchase

    agreements can be contingent on the buyers sale o another

    property, or upon the buyer obtaining a loan or the property.

    DeedWritten instrument which, when properly executed and

    delivered, conveys title.

    Earnest Money, Earnest Money Deposit

    A portion of money provided to the seller or escrow company

    by the buyer with a written purchase offer. Earnest money is

    intended as evidence of the buyers good faith. It is deposited

    with the escrow company once the purchase agreement is ex-

    ecuted, and is applied towards the purchase price of the home.

    EasementA right, privilege or advantage in real property, existing distinct

    rom the ownership o the land. Rights o access others have

    over your property such as a shared driveway or a local

    gas and electric company.

    Use this glossary as a general guide or commonly used terms in real estate transactions. Talk to

    your real estate proessional or more inormation on these and other real estate-related terms.

    Escrow

    Temporary deposit with an impartial third party o money and

    documents by both parties to a purchase contract. The escrow

    company handles all o the documents and distribution o unds.

    Hazard / Fire Insurance

    Insurance protecting against loss caused by re, some natural

    causes, vandalism, etc., depending upon the terms o the policy.

    Homeowners Association

    (1) An association o people who own homes in a given area,

    ormed or the purpose o improving or maintaining the

    common area. (2) An association ormed by the builder o

    condominiums or planned developments and required by

    statute in some states. The builders participation as well as

    the duties o the association are controlled by statute.

    HUD 1

    The orm used or the closing statement provided by the

    escrow company (See Closing Statement).

    Impound AccountAccount held by lender or payment o taxes or insurance.

    For example, the lender pays a portion o the yearly taxes with

    each monthly payment. The lender pays the tax bill rom the

    accumulated unds.

    Joint Tenancy

    An equally undivided ownership o property by two or more

    persons. Upon death o any owner, the survivor(s) take the

    descendants interest on the property. See chart on page 29.

    LienA legal hold or claim on property as security for a debt or charge.

    MLS

    Acronym or the multiple listing service, a searchable database

    o all properties or sale that real estate proessionals can use

    when seeking property or their clients.

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    GlossaryB U Y I N G + S E L L I N G

    6

    Note

    A document containing an express and absolute promise o the signer to pay a named person,

    or entity a denite sum o money at a specied time or on a specied date.

    Origination Fee

    A ee or charge or establishing a new loan. Part o the buyers closing costs.

    Physical Inspection Report

    A qualied inspectors report on a propertys overall condition. The report usually includes an

    evaluation o both the structural and mechanical systems. The inspection and report are completed

    during the contingency period, ater escrow opens but beore the transaction is completed.

    Preliminary Report

    It is an oer to insure, showing ownership, encumbrances and liens.

    Purchase Agreement

    A written document in which the purchaser agrees to buy certain real estate and the seller

    agrees to sell that real estate under stated terms and conditions. Also called a sales contract,

    deposit receipt, earnest money contract, or agreement or sale.

    Statement O Identity Form

    A condential orm lled out by the buyer and seller to help an escrow company conrm the

    identity o the parties involved in a real estate transaction.

    Tenancy In Common

    A type o joint ownership o property by two or more persons with no right o survivorship.

    For a more detailed explanation, see page 29.

    Title Deects

    Problems with the title to a property that may negatively impact ownership o the property,

    as well as the value o the property. Examples o title deects include: previously undisclosed

    heirs with claims against the property, a orged deed that doesnt legally transer title to

    real estate, or mistakes in the public records.

    Title Insurance Policy

    A policy that protects the purchaser, lender or other party against losses. T itle insurance

    oers protection against loss or damage arising rom various deects (as set out in the policy)

    that may exist in the title to a specic parcel o land. For more inormation on title insurance,

    consult with your Stewart Title representative.

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