If you have made an offer on a piece of real estate in Rhode Island, and the seller accepts the offer, there is a contractual obligation to proceed in good faith with the purchase. However, the process is far from over. During the time period between the contract acceptance and the closing and transfer of title, several tasks must be completed, and many documents need to be prepared and properly executed to avoid unnecessary delay and expense in the closing process.
Many of the tasks to complete before closing are based on the need for a buyer to secure financing of their property. Although not all of these steps must be taken if a buyer is paying in cash, a prudent cash-in-hand buyer will proceed with these steps anyway, to ensure the property is as promised. A qualified Rhode Island real estate attorney can act as a closing attorney and advise a buyer how to proceed with the transaction in a way that will protect their contractual rights without unnecessary expense.
If a buyer is seeking financing on the purchased property, a lending institution will generally require that a survey is done on the property before the closing. The buyer is usually responsible for paying for the price of the survey. However, a recently performed survey may be used or updated at a reduced cost. In addition to a land survey, a buyer seeking financing may be required to obtain an appraisal of the property to get a loan. Cash buyers may want an appraisal independently to ensure that the property is worth what they are paying. A qualified Rhode Island closing attorney can refer a buyer to a reputable appraising agency to perform the appraisal.
Whether a lender requires a home inspection before financing a newly purchased home, a buyer should have an inspection performed to ensure the home’s structural integrity. Many latent defects are not visible by the naked eye, and an inspection will allow the buyer to know that any structures on the property are safe and secure. After inspections, surveys, and an appraisal are completed, a financial institution will issue a loan commitment letter to the borrower that states the terms and conditions of the home loan before closing.
After the loan terms have been determined, the home buyer will need to purchase homeowners insurance to protect the value of the home (and the loan) in the event of loss due to natural disaster, negligence, or other problems. Homeowners’ insurance rates can be quite high. However, buyers can usually pay the premiums in installments that will be collected along with the mortgage payment.
Once all of the steps have been taken in anticipation of the closing, the buyer will be able to take a final walk through of the property to ensure that the seller has removed all of the furniture and other waste from the home, and that no damage or other issues have arisen since the home inspection. At the closing, the buyer, along with their closing attorney, will deliver all of the required documents to the seller and a representative of the lender, pay the closing costs, and execute the final contract of sale.
Contact a Dedicated Rhode Island Real Estate Attorney
Home buyers may be tempted to forego hiring a Rhode Island real estate attorney to represent them during a real estate transaction, and it is possible to complete a transaction without legal counsel. However, many unforeseen problems can only be avoided or rectified with the help of a licensed and qualified lawyer. The attorneys at Bilodeau Capalbo will assist and represent you throughout the process, and we’re qualified to offer valuable legal advice that the seller, your broker, or your lender is not permitted to offer. Contact us at Bilodeau Capalbo to schedule a no-obligation consultation to discuss your real estate transaction today at 401-300-4055.