Published on 24 February 2006 at 08:39 pm
Filed under: North America:- USA Property Guides » America US Real Estate Buying Guide
There are small differences between the real estate purchase processes in America depending on which state in the US a property investor is interested in.
This guide to the property buying process in America details the main aspects applicable to all real estate purchases in the United States.
First things first all estate agents or realtors in the United States have to be licensed which means that an investor is covered by the code of conduct that real estate agents have to abide by. This does not remove the requirement to have a lawyer assist with the whole real estate purchase process however – in fact a lawyer is a necessity as there are certain functions in the real estate buying process that they are required to carry out.
The first stage of any buying process is for the property investor to view a range of property or land to meet their general investment objectives. To this end a prospective buyer should solicit the assistance of one or more estate agency to assist in the search for investment real estate in the USA.
Once property or land has been sourced it’s usual to make a formal offer to purchase which can be turned down by the vendor if they require more money for the sale. Negotiations can be handled by the realtor with the vendor and once a price has been agreed upon a conditional purchase agreement is signed by the vendor and investor.
Once the purchase agreement has been signed anyone requiring a mortgage should apply to a loan company or bank for the funds – for a basic, straightforward mortgage acceptance an investor should allow for 3 weeks. Those who are unsure of whether they qualify for a loan in America should apply for a decision in principal from a lender before making an offer to purchase property.
While the loan is being sorted out an investor’s solicitor will undertake searches relating to the property, its title deed and the validity of the vendor to offer the real estate for sale. In the meantime a property buyer in America should have a home inspection survey carried out to check for structural soundness, termites and radon. Furthermore they will be required to arrange a homeowner’s insurance policy before the sale can be closed.
With the completion of all of these steps the vendor and purchaser or their representatives will attend the title company to close the sale. The property investor will be required to present a certified cheque for the balance of the sale price, proof of insurance and proof of payment for insurance. In terms of the taxes and fees an investor will be required to pay, again they differ greatly from state to state and it is imperative a potential purchaser discusses the property taxes, lawyer and agency fees that they will have to find before they commit to a property purchase in America.
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