Friday, November 27, 2009

California Real Estate Buying Process

Purchasing a home in California is different from other states. First of all, California does not use attorneys to consummate real estate transactions, which is common practice on the East Coast.

Real estate transactions in California do use a third party called an Escrow. After one finds a home and begins the buying process, one will hear about "opening escrow" and "closing escrow".

Also, there is not a final closing meeting. Very rarely do the buyers and sellers even meet each other.

The following Timeline shows the steps and process of a real estate transaction in California. The Timeline is not all-inclusive nor the days exact as the Purchase Contract will dictate what is required and when. With that said the Timeline is however, a good guide for the ideal and typical real estate transaction.

(Day -1) Buyer has met with at least two Loan Officers and has in hand two GFE’s (Good Faith Estimate). Seller has all Disclosures Forms and a Wood Destroying Pest Inspection completed

(Day 0) The purchase offer is signed by both buyer and seller

(Day 1) Escrow is opened

(Day 1-3) Buyer’s earnest check is delivered to escrow

(Day 1-7) By the 7th day the seller has delivered the following items to the buyer
- Seller’s Disclosures
- Wood Destroying Pest Inspection Report
- Natural Hazard Zone Disclosure Report
- Preliminary Title Report

(Day 1-17) By the 17th day the buyer has the following items completed
- Reviewed and signed seller’s Disclosures
- Reviewed and signed the Wood Destroying Pest Inspection Report
- Reviewed and signed the Natural Hazard Zone Disclosure Report
- Reviewed and signed the Preliminary Title Report
- Ordered, reviewed and signed a Physical Inspection Report
- Ordered, reviewed and signed any additional Inspections the buyer deemed necessary
- Submit a Request for Repairs to the seller
- Remove all required Contingencies

(Day 18-29) Seller has all the work in section 1 of the Wood Destroying Pest Inspection Report and all agreed items in the Request for Repairs completed

(Day 26-30) Buyer does a Final Walkthrough of the property

(Day 30) Buyer signs closing and loan documents

(Day 31-35) The loan is funded, the property recorded and the buyer receives the Deed and keys for the property, which closes escrow

When you are ready to learn more about San Diego real estate give me a call or shoot me an email. Together we can find the perfect fit for you. www.877homes.com