The
North Carolina Closing Process
-
Escrow
Escrow is the process that
starts when your offer is accepted by the seller. It ends when you become the new registered
owner of the property.
From
Contract to Closing
Parties Involved
Action
Buyer, Seller, Agents
Contract
Successfully negotiated, all copies delivered
Buyer, Seller, Agents
Home inspection ordered, performed.
Report issued.
Repairs negotiated.
Termite Inspection ordered and preformed.
Any treatment paid by sellers.
Buyer
Makes formal loan application, pays for
credit report & appraisal.
Lender
Orders credit report, appraisal, solicits
verifications.
Seller, Appraiser
Appraisal performed.
Report sent to lender.
Lender
Receives all documents, sends file to
Underwriter.
Sends to PMI Company if necessary.
Loan
commitment issued.
Buyer or Agent
Notifies Attorney to do Title Search, Prepare
Sellers deed
Homeowner’s Insurance is purchased
Closing date is set:
All parties notified.
Buyer
Utilities ordered in Buyer’s name as of
closing date.
Seller
Final meter readings for utilities ordered as
of closing date
Lender
Forwards final closing package to Attorney.
Attorney
Runs final update search on Title.
HUD statement to Agents.
Agent/Broker
Forwards Earnest Money Deposit to Attorney.
Buyer, Agent
Perform final walk-through inspection prior
to closing
Buyer, Agent, Seller, Agent
Settlement:
Seller signs Deed.
Buyer sign Note & Deed of Trust.
Title Insurance issued.
Buyer pays Attorney by Certified Check per
HUD-1 statement.
Attorney
Closing:
Records all necessary documents at County Court
House.
Disburses funds:
Agent’s check, Seller’s proceeds, all items
agreed upon at settlement meeting.
What
is a home inspection?
It is an evaluation of the
visible and accessible systems and components of a
home (plumbing system, roof, etc.) and is intended
to give the client (usually a homebuyer) a better
understanding of their condition. It is also
important to know what a home inspection is not! It
is not an appraisal of the property's value; nor
should you expect it to address the cost of repairs.
It does not guarantee that the home complies with
local building codes (which are subject to periodic
change) or protect you in the event an item
inspected fails in the future. [Note: Warranties can
be purchased to cover many items.] Nor should it be
considered a "technically exhaustive" evaluation,
but rather an evaluation of the property on the day
it is inspected, taking into consideration normal
wear and tear.
Can anyone perform a home
inspection?
No. Only persons licensed by the
North Carolina Home Inspector Licensure Board are
permitted to perform home inspections for
compensation. To qualify for licensure, they must
satisfy certain education and experience
requirements and pass a state licensing examination.
Their inspections must be conducted in accordance
with the Board's Standards of Practice and Code of
Ethics.
Why
should I have the home inspected?
Most homebuyers lack the
knowledge, skill and emotional detachment needed to
inspect homes themselves. By using the services of a
licensed Home Inspector, they can gain a better
understanding of the condition of the property,
especially whether any items do not "function as
intended"or "adversely affect the habitability of
the dwelling"or "warrant further investigation" by a
person who specializes in the item in question.
How do I request a home
inspection, and who will pay for it?
You can arrange for the home
inspection or ask your real estate agent to assist
you. Unless you otherwise agree, you will be
responsible for payment of the home inspection and
any subsequent inspections. If the inspection is to
be performed after you have signed the purchase
contract, be sure to schedule the inspection as soon
as possible to allow adequate time for any repairs
to be performed.
What
should I do if I feel something has been missed on
the inspection?
Before any repairs are made
(except emergency repairs), call the inspector or
inspection company to discuss the problem. Many
times a "trip charge" can be saved by explaining the
problem to the inspector who can answer the question
over the telephone. This also gives the inspector a
chance to promptly handle any problems that may have
been overlooked in the inspection.