Pre-Closing Activities

During pre-closing, all contingencies, such as your home passing a termite inspection, must be satisfied.

Your Responsibilities: After you have signed a contract, there is still a lot of work to be done. We will keep you informed on how you buyer's financing arrangements are proceeding, discuss arrangements for the various inspections that need to be done and coordinate the other details that are required before closing time.

Also, during the pre-closing stage, all contingencies will be satisfied and removed. For example, if the sale of your home is contingent upon your home passing a radon test, you need to know about the results of this test with enough time to remedy the problem, if there is one.

In preparation for closing, the title will be carefully researched by the attorney, usually chosen by the buyer. A deed will be drawn up for you by the buyer's attorney or your own.

Appraisal and Inspections: When the buyer is obtaining financing to purchase your home an appraisal is normally required by the lender to ensure that the value of the property is adequate for the proposed mortgage. We will arrange the appointment time for the appraisal with you. The time required is usually the same as a showing appointment. The buyers pay for this appraisal.

In addition, there are a number of inspections your home may undergo during the transaction. They are:

1. General Home Inspection – This inspection is recommended for any transaction. The scope of the inspection is to review the home from top to bottom. The buyer picks the inspector and pays for inspection. Any potential defects will be documented and additional specialized inspections may be recommended.
2. Termite Inspection – This inspection may be required by the lender and is usually specified in the sales contract. The buyer is responsible for paying for this inspection but the seller is responsible for removal of any infestation, if required, and the repair of damage, if needed.
3. Radon Test – This inspection is completed more frequently because it was recently added to the N.C. offer to purchase and contract. The buyer pays for the inspection but the seller is expected to remediate the problem if one exists. For more information on Radon, you may wish to check the government site: http://www.epa.gov/radon/.
4. Well and Septic Inspection – If the property is on a septic/well system, a current inspection by a qualified well and septic inspector is sometimes completed. The buyer also pays for this inspection. If a problem is found during the general home inspection it may be the sellers that pay for this inspection.
5. Survey – A survey is a map or plat made by a licensed surveyor showing the results of measuring the land with its elevations, improvements, boundaries, and its relationship to surrounding tracts of land. A survey is often required by the lender to assure a building is actually sited on the land according to its legal description. This is paid for by the buyer.

Loan Processing/Approval: A common questions we hear is “How long will I wait between sales contract and settlement?”

Several issues determine closing dates. Number one will be the buyer's notification to their current landlord or coordination of the sale of their home. Depending on the type of financing your buyer is applying for, the waiting period can be any time between 20 to 45 days average. The difference in waiting time depends on how prepared your buyer is, how quickly the buyer communicates the information needed to process its loan application and how busy the appraiser may be. If there are title questions, inspections questions to be resolved, or the buyer is slow to communicate information to the lender, the closing time can take longer.

Don't forget if you will be paying off your loan, that you must notify your lender. Your lender will prepare a “payoff notice” with the exact amount of your mortgage balance payable on the day of settlement. These are the items that we will make sure go smoothly with your transaction.

Walk-Through Inspection: Several days prior to closing, your buyer may have a “walk-through” inspection of your home. The purpose of the walk-through inspection is to make sure that all of the conditions in the sales contract have been satisfied. During the walk-through, the buyer will make sure the home is in the same condition it was when he/she agreed to purchase it.

The buyer performs the actual inspection and is usually accompanied by the selling agent (their buyer's agent) or the listing agent. You do not need to be present.

You can expect the buyer to try the lights and outlets, turn on water faucets, run the shower, flush the toilet, and try the furnace and central air-conditioning. In addition, the buyer may test just about everything in the home for defects.

The sellers' role in the walk-through is to make sure that everything in the home is in good working condition. It is important to make sure that all the agreed upon repairs discussed after the inspections have been done and to have the receipts ready to prove the work was done. It is also important not to cut off the power and water during this time. We recommend that you have the water and power bills paid up to the day after closing in order to give the new owners time to switch everything into their names.

If the buyers find any problems, they should be noted and funds may be withheld by the attorney at closing for repairs if you do not correct the problems prior to settlement. If the funds are withheld in escrow by the attorney for repairs, they will be returned to you as soon as that professional receives receipts and notification that the repairs were completed.

Planning Your Move: There are quite a few important details to take care of in any move. While you are waiting for settlement day; there are a few things you can be doing to make moving day easier and hassle free.

Contact Movers: If you are moving out of the area, it is wise to get estimates from several moving companies. Choose a company and set the moving date. Check with your insurance company to make sure your family car and household goods are adequately protected while en route and initially after arrival. If you are moving to another state, make sure you or your moving company will have all of the necessary paperwork to transport your belongings to your new state.

Before You Leave: Be sure to arrange for the following:

• Have your refrigerator and other appliances serviced for the trip.
• Write to the utility companies in the city to which you are moving. Ask them about necessary fees or deposits required for installation of service.
• Remit the utility deposits required with information when and where you will want the following services activated: gas, electric, water, telephone and cable.
• Arrange for sufficient cash or traveler's checks to cover the cost of moving service and expenses until you make banking connection in the city to which you are moving. Cash or certified check is generally required by moving companies for delivery of household goods.

Change Your Address: Be sure to inform the following organizations of your new address:

1. Banks
2. Employers
3. Post Office
4. Magazines
5. Life, Health, Homeowner's and Auto Insurance
6. Credit Card Companies
7. Clubs and Organizations.

Arrange to Transfer: Make arrangements for the following transfers:

• Loan payments
• Insurance Policies – make sure your possessions will be covered at your new home and en route.
• Bank Accounts – if you are leaving the area don't forget to transfer the contents of your safe deposit box as well as have your present bank supply a credit reference for establishing a new account in the city you are moving to.
• Subscriptions
• Health plans
• School records

Notify Service and Utilities: Arrange cut-off dates and where to send the final bills for:

• Newspaper
• Garbage Collection
• Gas/Oil
• Electric
• Water
• Telephone
• Cable
• Charge
  Accounts
• Lawn Service

Secure Records: Obtain copies of the following records:

• Schools – statement of present status of each child
• Doctors – records of shots, allergies, special prescriptions, etc.
• Birth certificates
• Dentists – copy of records and X-rays.
• Veterinarians – copies of pet's medical records.

At Your New Address:

• Check on the service of telephone, gas, electricity, water, and fuel for the furnace.
• Make sure all pilot lights are working on hot water, furnace, etc…
• Make sure all appliances are working.
• Ask the mail carrier for any mail the post office may be holding for your arrival.
• Obtain a new driver's license.
• Visit city offices and register for voting. Register car after arrival in state or a penalty may have to be paid when getting new license plates.
• Register children in school.