The Closing Agent.
Either an escrow agent or title attorney will be selected as the closing agent. The closing agent will hold the buyer’s earnest money deposit (EMD), examine the chain of title associated with the property, and coordinate the buyer’s and lender’s title insurance policy.
Inspections and Appraisals
Most buyers will have the property inspected by a licensed property inspector within the contractual time frame. Buyers may also opt to bring in tradespeople, specializing in a particular building trade (e.g. roofing, structure, HVAC), to inspect portions of the property.
If the contract is subject to an appraisal contingency, an independent licensed appraiser will inspect the property to ensure that the appraised value of the property is not less than the contract sales price. If the property’s acquisition is being bank financed, the bank will typically require the appraisal, however many cash buyers will also order an appraisal.
Loan Approval and Appraisal.
Once the buyer has satisfactorily completed property inspections, the property appraisal and any lender required conditions, the loan should be approved and the parties will next complete the closing of the transaction.