Whether you bought your California home three years ago or three decades ago, you probably remember a thing or two about the escrow period, which gives buyers and sellers a chance to work out the details of their real estate transaction over a period of around 30-45 days.
Many of the tasks will be handled behind the scenes by professionals like real estate agents, title reps, escrow agents, and loan officers. And many of the tasks will be handled by the buyers. But there are a few important things you’ll need to do during escrow as the home seller.
Here is your home seller’s escrow checklist.
Complete Several Important Disclosures
California law requires sellers to disclose material facts about the condition of the property and the area around the property. This means that you must notify the buyers if you have important information that could affect the buyer’s decision to purchase your house. Seller disclosure forms make it easy to list this information for the buyers. And they serve as a handy reminder of material information you might not otherwise remember to document.
If you’re working with a qualified real estate agent to sell your house, your agent will have all the disclosures ready for you to complete and sign. Your agent can even compile a list of new construction or infrastructure projects in the area to make sure you meet the requirements for disclosing neighborhood information.
Make the Property Available for Inspections
The buyers have the right to inspect the property before closing the deal. In nearly all cases, the buyers will have a licensed home inspector examine the house and outdoor areas. The buyers might also want to arrange for a specialty inspection (like a termite inspection, chimney inspection, or pool inspection) in some cases. It is your job to make sure the inspectors have access to the areas of the property they have been hired to examine.
It’s important to note that many lenders require their borrowers to have certain inspections. And many government-backed loans require specialty inspections as well. FHA loans, for example, require a termite inspection if any termite damage is suspected.
Complete Required Repairs
In many cases, especially in a hot seller’s market like we’re seeing in California, buyers won’t ask for any repairs. But there may be times when repairs aren’t just requested but are required. If, for example, your buyer is planning to use an FHA loan to buy your house, the loan can’t be issued until any termite damage is repaired. FHA loans can only be issued if the house is safe, secure, and sound, so sellers might need to make repairs to correct any issues in the home that would affect any of those three criteria.
Facilitate a Final Walk-Through
Your buyers will have the chance to conduct a final walk-through with their agent to make sure the house is in the same condition it was in when they first agreed to buy it. All you have to do is maintain the condition of the property through the escrow period, and make sure the buyers have access to the property near the closing date to complete their final walk-through.
Sign the Closing Docs
And finally, you get to sign the closing docs in front of a California notary to make the deal official!
While this home seller’s escrow checklist might be short, complications can creep up at any step. You may have questions about what needs to be disclosed, and what does not. Or you might need professional guidance to respond to buyer requests for repairs.
Make sure you choose a listing agent who knows, not just how to market your house for sale, but also how to navigate the escrow process. Contact Sequoia Real Estate for a free consultation with an experienced real estate professional who knows how to guide you smoothly from contract to close!