There are numerous terms related to the home-buying process and potential buyers should become aware of them in advance. When you decide to buy a property, it is important to hire the right title company which will guide you through all important steps of the closing process.
Earnest money. A home buying process starts with an earnest money deposit, which is equal to around 3% of the property value. Through earnest money, a buyer demonstrates his/her commitment to buy a property.
Contingency is just an extra step that the buyer needs to undertake in order to keep the process going forward. Examples of contingencies are a home inspection or a loan approval. The benefit of contingences is that they provide buyers with the option to exit the sale process, in case they identify a problem.
Escrow – An escrow is a secure account which holds important assets, such as funds, documents and contracts, until the sale gets closed, and the property is transferred to the buyer.
Possession Date – The date when the buyer(s) can officially move into their home. The more flexible a possession date it, the faster your property might be sold.
Settlement date – Also known as the closing date, a settlement date is the official date when all parties get together to make the sale official.
Home warranty – A home warranty, which typically ranges between $300 and $600, is a policy that covers the cost of home’s appliances repair in case they break down.
For clarification of terms involved in the process and the execution of a smooth transaction, contact us at +1.305.372.0222 and/or [email protected]