Tehama Country Real Estate

Tehama Country Real Estate – 3 H o w t o Av o i d Surprises at the C l o s i n g Ta b l e Real Estate Spotlight By Alex Mason verlooked S that could factors create chaos include a misome things in life are a welcome surprise, and understanding of the escrow length, if the seller will some people thrive with the feeling of "winging it." A contribute a portion towards the buyer's closing real estate transaction isn't something you should do costs, and what fixtures or furnishings will accompaon the fly, though. ny the sale of the property. When you are buying or selling a piece of property, Similarly, items in or around the property that are knowledge is power and answers are everything. All cards must be on the table from all parties involved to not welcomed by the new buyer must be removed have a hassle-free and litigation-free transfer of prop- from the property before escrow closes. This may include a backyard spa, refrigerator in the garage or erty. unwanted lighting fixtures inside the home. Hiring a quality real estate agent will help to cut down on the shocking surprises that may be too late Parties on the Title to correct or cope with. Whether you are buying or Once a home is purchased, a title to the property selling, be sure you have a real estate agent at your will be issued to the new owners. In most cases, a side at all times if you want to avoid surprises. husband and wife will have both names added to the title. However, in some cases, the property title is Know Your Loan Terms and Conditions going to be shared with another party that was When a buyer finds the perfect property, it is easy involved with the purchase. This may include friends to approach the lending stage with blinders on. After or family of the primary buyer, or anyone else they all, we want nothing more than to secure the proper- see fit. ty and call it our own. Putting someone on the title to your new home may However, the fine print in the loan document can seem like a benevolent gesture, but buyer beware for cause nightmares. Your loan contract is full of terms complications down the road. A property may not be and agreements that, when breached, could result in resold until all parties on the title have consented and the forfeiture of the home. sign for the sale. A qualified loan officer is there to serve you, break- When someone outside of the immediate family in ing down all the terms and conditions into layman's listed on the title, there could be a tug of war as to language. The borrower needs to understand what when to sell the property, how much is the asking each loan product means in terms of repayment, price and a battle over the profit. In addition, parents interest rate, and the difference between a steady who wish to put their young adult children on the fixed rate loan and the often shaky adjustable rate title must proceed with caution. A young person, parloan. ticularly males between the ages of 16 and 24, are an extremely high risk to add to the title of a piece of The fixed loan rate will be somewhat higher than an property. adjustable one. However, this loan product is a safe guarantee that the monthly mortgage payment will One reason comes down to the driving skills and never fluctuate and increase should future interest high insurance rates for young male drivers. Should rates rise. a young and inexperienced driver become involved in an auto accident, the injured party may sue for The adjustable rate loan may offer a lower monthly damages and walk away with your home. If the waypayment initially, but it can be a game of risk when ward driver is on the title of the home, the property is the loan adjusts in two, three or five years to an fair game with a lawsuit. unknown interest rate. Closing Costs The buyer and seller need to be on the same page with the closing agreements and have everything put into writing. There are no valid verbal agreements in the real estate game, so be sure your buyer's or seller's agent has all the terms and conditions ten in the contract. If you wish to ensure your young adult child will be handed the property after your death, simply get a will and state him or her as the beneficiary to the home. This is the safe and sane way to protect your property from auto liability and lawsuits while taking control of the situation. writAlex Mason is a former real estate agent and mortgage broker living in Los Angeles.

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