Things I wish I knew when I bought my home

by Corcoran McEnearney

When we bought our first house, I couldn’t understand the long lead time between contract acceptance and the day of settlement. We were expecting our first child and I was anxious to get moving! Wow! What I know now that I didn’t know then! So much happens between contract and settlement.

The title company, or settlement company, coordinates all aspects of the closing. They order a title search to make sure the seller can deliver clear, marketable and insurable title to the property. If there are any title issues, they work to clear them up.

It is important to keep in mind that the title company selected (it is the buyer’s option in Virginia) is not representing the buyer or the seller – they are representing the contract to make sure that all aspects that have been agreed to are adhered to at settlement. Of course, the seller and the buyer have the option, in addition, of being represented by their own attorney.

The title company is also responsible for any homeowner association dues to be collected and to make sure that the seller isn’t in arrears. In addition, the title company works closely with the buyer’s lender to produce an accurate closing disclosure outlining all expenditures, which the buyer must receive three days prior to the date of settlement.

The title company also receives lender-required documents and prepares them for the buyer’s signature, in addition to preparing the seller’s deed of conveyance, the instrument used to convey title to the new homeowner. Finally, the title company is also responsible for recording the new deed at the appropriate local jurisdiction, and if there is a seller loan involved, they ensure the payoff goes out to the seller’s lender in a timely manner.

Some final thoughts and tips:

– Be sure the date you put in your purchase offer is a date you can meet as the Virginia sales contract reads “settlement will occur on or before _____ with mutual consent.”

– Lastly, don’t expect the sellers to be at settlement at the same time as the buyers. Those days are largely over. Often, the sellers have already left the area and sign ahead of time. The point is, be prepared to get answers to any questions you may have for the sellers ahead of time. It may well be your only opportunity. It’s important to work with an experienced buyer’s agent who has good communication skills. Your agent will work with the listing side to garner specifics prior to settlement.

Interested in buying or selling this year? Contact me, I have the tools and strategies to help you navigate our local real estate market. Contact me for a free comprehensive Buyer’s Guide.

Martha Floyd is a licensed real estate agent in Virginia with McEnearney Associates Realtors® in McLean, VA and a Lifetime, Top Producer. If you would like more information on selling or buying in today’s complex market, contact Martha at 703.408.9478 or visit her website MarthaFloyd.com.