real estate agent handing keys to client

What To Expect In A Residential Transaction

Written by LTS
Category: Blog Created: Thursday, 09 July 2015 11:23

Below is a list of the more common steps involved in a residential transaction.
Your situation may vary and it is best to contact your real estate professional for more information.

Common Steps for Buying a Home

Initial Meeting

  • Select real estate agent
  • Determine needs and wants
  • Determine financial eligibility

Loan Qualification

  • Discuss finances
  • Obtain prequalification

Find a Home

  • Select an affordable property that fits your needs
  • Discuss offer with agent
  • Buyer reviews contract with agent
  • Agent presents offer to selling side

Agent Presents Offer

  • Buyer prepares "earnest money" deposit
  • Seller accepts offer (Seller can accept your offer, counter your offer, or reject your offer)

Open Escrow

  • Deposit "earnest money" into escrow
  • Deposit "earnest money" into escrow ( usually deposited into listing Broker’s trust account
  • Title company or Escrow or Closing Company is selected ( This is the phase of the transaction where we at Lawyers Title get involved).
  • Purchase transaction documents delivered to Lawyers Title
  • Title Agent, Lawyers title will order Preliminary Title Search or Title Report ( Seller should deliver to Lawyers title a copy of any prior Title Report or Title insurance policy)
  • Escrow will order Preliminary Report

Submit Loan Application
Contingency Period

  • Conduct Physical Inspection of property by a qualified inspector
  • Preliminary Report
  • Conduct property appraisal
  • Obtain loan approval from lender

Obtain Homeowners Insurance

  • Select insurance company and coverage
  • Insurance will be in effect at close of escrow

If applicable, obtain Home Warranty insurance Sign Documents

  • Lawyers Title receives signed documents

Down Payment

  • Need cashier's check or money transfer prior to closing date

The Closing

  • Need cashier's check or money transfer prior to closing date
  • Deposit funds and closing costs to escrow
  • Lender sends balance of purchase price to Lawyers Title
  • Deed and Mortgage are signed (sent to County Recorder's office for filing)
  • Get your keys and move in!

Property Titles

Buying or selling a home is, for most people, the largest financial endeavor they will ever undertake. You need to secure the professional services of a title company to efficiently and accurately handle this important transaction. The experienced staff at Lawyers Title  has been helping to settle real estate loans for buyers and borrowers in Minnesota for more than 30 years.

Lawyers Title will perform a “Title Search” which requires searching the real estate records in the county where that particular piece of property is located. The Title Search will (1) determine the legal owner of the property; (2) reveal any mortgages, liens, judgments, or unpaid taxes that will have to be satisfied before the property is conveyed; and (3) detail any existing easements, restrictions, or leases that affect the property.

Title Commitment

After the Title Search is completed, Lawyers Title will issue a Title Insurance Commitment. The title insurance commitment will set forth all things that need to be completed, and any Title issues that need to be corrected before the sale or refinance can be completed.

Title Insurance

Title insurance is protection against loss or damage arising from Title problems to your property. The home you are purchasing probably was owned by others before your purchase and the land upon which it is located may have had many more prior owners. There may be a weak link at any point in that chain of Title that could emerge to cause trouble. For example, someone along the way may have forged a signature in transferring title. Or there may be unpaid real estate taxes or other liens. Title insurance covers the insured party against loss or damage that could arise out of such problems.

Just as lenders require fire insurance and other types of insurance coverage to protect their investment, nearly all institutional lenders also require title insurance to protect their interest in loans secured by real estate.

Our Services

We provide a wide range of services related to residential and commercial real estate transactions. We serve realtors, homebuyers, attorneys, mortgage lenders, builders, developers, and investors throughout Minnesota.

Our Locations

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