Step 8 - Closing the Transaction

Okay, we're almost there.  It's now three days prior to the close of escrow date, the loan documents are at the title company (if you're using financing) and the listing agent has informed us that all repairs have been made to the property.  It is at this point that we take the buyer to the property for the "final walkthrough."

During the final walkthrough it is important to make sure that the property is in the same condition as when the offer was made.  Theft has become common with the large amount of non-occupied bank owned properties in the Phoenix Area so it's importunating to make sure all appliances are still in place and there hasn't been any vandalism to the property.  At this time the buyer should also inspect any repairs made by the seller and assure they were done to their satisfaction.  We always try and request receipts for any repairs made, as often times any warranty for such repairs are transferable, but that is not always possible.

If everything checks out with the home then the buyer will be sign a walkthrough form saying that they accept the property in the condition that it is in.  If the seller has not completed any repairs to the buyer's satisfaction, or if anything else is wrong with the property,  we will then issue what is called a "cure period notice."  This is a standardized Arizona real estate form that gives the other party 3-days to correct any defects.  If any such defects are not corrected within 3-days the receiving party of the cure notice is then in "breach of contract."  Once in breach the party that served the cure notice can choose to cancel the contract if no other resolution can be made.

If using financing, in accordance with the Arizona real estate purchase agreement, all loan documents must arrive from the lender to the title company no later than 3-days prior to the close of escrow date. Since this stipulation was added to the contract in 2005 closing delays have been greatly reduced.  Usually the two parties (buyer/seller) will go separately to title company to sign any necessary documents 

Once all the documents have been signed the title company will send the signed documents to the lender. Once the lender has approved the documents they will then send a wire transfer of funds to the title company. The title company will then send a wire transfer to pay off the balance of any loan(s) that the seller might have out on the property and issue a check or wire to the seller for any remaining balance. Once this has been done, the title company will then release the title transfer to be recorded at the county recorders office.

Once "released to record" the actual recording will usually take up to a few hours.  If title does not get released to record until later in the day then the official recording may not take place until the following business day.  Once officially recorded the property is then said to be "funded and recorded" and it is at this time that the transaction has officially closed.   It is also at this time that the buyer will get the keys to their new home.

We are happy to say that we have had the opportunity to see this process come to a successful close many times and usually without any major bumps in the road.  We are agents that truly enjoy helping people find the perfect home and further help throughout the transaction all the way until the close.  We pride ourselves in the quality of our work.. Patience is an important part of this business and we have plenty of that as well.  From assisting someone who is relocating to Arizona, a first-time home buyer, or someone wishing to purchase a beautiful vacation home to come to during our amazing winters,  whatever it is, we are more than happy to help.

We have also written a special section for some of the other things to consider when purchasing bank-owned homes, "About Buying Bank Owned, "which you can find by clicking here.

If you would like us to assist you in the purchase of your home in the Phoenix Valley, please click here to Register as a Buyer