What happens after I sign my Crested Butte real estate contract?

What happens after I sign my Crested Butte real estate contract?

So you are under contract…congratulations!  Depending on your closing date, you will have a few weeks to months to accomplish everything needed to finalize your transaction.  There are inspections, surveys, loan objection deadlines, and many other deadlines that your realtor will guide you through.  Continue reading for an overview of what to expect.

Submit the contract to a title company

After your contract has been signed by all parties, your realtor will submit the contract to a local title/escrow company.  What is a title company and what does it do?  A title company serves two main purposes.  It provides title insurance and also collects and disburses money for closing.  Title insurance guarantees the seller has complete ownership to the property and is therefore transferring “clear” title to the buyer.

Review the Title Commitment

The title company will prepare a title commitment for you.  Within the commitment, you’ll find the name(s) of the current owner(s), the exact legal description, a list of requirements that must be met in order to insure the property, and finally, a list of exceptions to the final title insurance policy.  There is a lot of information in this document, and that’s where your realtor steps in to explain all of it to you.  If there are any exceptions listed in the title commitment that are unacceptable to either seller or buyer, this is the time to start addressing these issues.

483 Haverly Crested Butte Real Estate

Deadlines, Documents, and Disclosures

Depending on the type of property there will be many upcoming disclosures to draft, documents to review, and deadlines to pass.  If the property is within a Planned Unit Development (PUD), it most likely will be subject to the rules of a Home Owners Association (HOA).  Your realtor will gather and provide you with the HOA documents for you to review.

The seller will produce a Seller’s Property Disclosure explaining any known issues with the property to the best of his/her knowledge.

There are loan deadlines and appraisal deadlines for those transactions in which the buyer is getting a loan.  The buyer should expect to submit many documents to his/her lender for final loan approval.

If the transaction includes the transfer of land, the title company and/or lender will most likely require an Improvement Location Certificate (ILC) or survey to review the boundary lines, easements, and any other sort of encroachment on the property.  An easement is permission for a right of way on a piece of land.  An encroachment happens when there is no record of permission granted in the county records for an overhanging building, driveway, or other intrusion on one’s property.

Usually, an inspection will be requested on any dwelling.  A licensed inspector will thoroughly go through the property and note anything of concern.  This is another important document to review. Your realtor should be able to arrange the inspection.  It is greatly beneficial to the buyer if he/she is able to attend the inspection.

Crested Butte Real Estate closing documents

The Closing

While all these documents and deadlines and being dealt with, the title company will be contacting you for any needed information.  The employees there will prepare a final Closing Statement for you.  The Closing Statement shows the charges and credits and then the final balance either due from you or due to you.  If there is a loan involved, you will receive a Closing Disclosure.  This is the same exact thing as a Closing Statement but in a different format.   It is very important that your realtor reviews the Closing Statement.  He or she should be very familiar with this document and can catch any mistakes or overlooks by the title company.

Depending on whether or not you’ll be in town, the title company will have you come in to sign your documents or will overnight them to you.  If you are in town, your realtor should be at the closing table with you to answer any questions or address any last minute issues. If you won’t be at the closing table, please be prepared to have a notary lined up to notarize the documents for you.

After all the title company and loan documents have been signed and returned and all funds due have been received by the title company, the title company will record any necessary legal documents and then disburse funds as indicated on the Closing Statement.  Congratulations are then in order!

Hopefully this article has prepared you for your upcoming Crested Butte real estate transaction.    Please feel free to ask me any questions as I know this can be a confusing process.  With my 17 years of experience I am qualified, ready, and prepared to answer any questions you might have.   Feel free to contact me at (970) 209-2421 or GHuresky@LivSothebysRealty.com.