Have you ever had a home purchase or mortgage transaction die because of a detail that you never thought of? Maggie MacDonald from Cooper Realty Group at Keller Williams joins us to cover how the Devil is in the Details: where real estate transactions go wrong and how to prevent them. In our interview we break down into the three professions that cover the details and have to deal with solving problems as they occur. We answer all of the questions below in our in-depth interview:
Real Estate Agents:
- Contracts
- Names on the contract
- Writing them how they will appear on title
- Who needs to be on the contract
- If married: 1 to buy, 2 to sell. If there is a mortgage on the property then both parties need to be on the title, or spouse will need to sign a marital waiver.
- Dates
- Commitment Date
- Inspection Dates
- Closing Dates – make sure it isn’t a holiday. Make sure buyer won’t be out of town.
- Proper Addendums
- VA, FHA, USDA, Condo/Villa/PUD Rider, Down Payment Assistance
- Counteroffers
- 45 Day Intent to Sell – prevents mechanics liens
- Inspections – Biggest failure point
- Seller Disclosure is important
- Laclede Gas Inspections
- Termite Inspections – must be paid by the seller on certain properties
- Occupancy Permits – role of the seller and buyer
- Possession of Property
- When can the buyer have the keys?
- What if the transaction hasn’t funded yet, can the buyer go ahead and move in?
- Explain how funding works. Buyer’s lender sends a wire to Buyer’s title company. Has to close in time to wire money to Seller’s title company.
Mortgage:
- Not reviewing income documents before Pre-Approval
- Not getting documentation back fast enough
- One document will cause 3 more to be requested (Bank statements showing large deposits)
- Staying credit worthy during the process
- Cashier’s check at closing
- Documenting down payment – paper trail
Title Company:
- Old liens not released that were actually paid off
- Tax liens that pop up against either party
- Clouded title – having time to clear
- All parties being present
- Long-term separations cause people to forget they need their spouse to sell a house.
- Spouse in prison
- Spouse away on active duty military service
- Power of Attorney
- Mechanics Liens
Audio:
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