So, you've liked your new property, you have an agreement with the seller for the sale, you've specified the parameters of the deal, but that doesn't mean you should relax or think the deal is done. Here are 5 key things to pay attention to before signing the deed and finally taking ownership.
Comply with the provisions of your preliminary contract
Every contract is a written expression of agreements between two parties. You should be very familiar with the arrangement you are entering into, especially if you are buying from an investor, there contracts are long and have many different clauses, be sure of what you are signing and what commitments you are making as well as the other party. You need to know under what conditions you can back out of the deal without losing the deposit in case of any irregularities with the property - documentary, structural, etc.
Check the ownership documents
When you buy a property, you are getting the title deeds to it, so you need to be sure of what you are buying and that there will be no third party claims to ownership of the property you are buying later on. A certificate of encumbrance or absence of encumbrances is important when buying a home - as well as giving a full history of all transactions with the property concerned, it also lists any mortgages, foreclosures or encumbrances. When buying from an investor - ask for a schedule of building works, it gives a proper idea of when the investor plans to actually complete work on your new property.
Get final loan approval
Pre-approval for a loan is different, it is issued based on your income. The final approval you get from the bank gives you the green light that you can buy the particular property you liked. All banks grant mortgage loans based on an appraisal by an appraiser licensed to the bank, it is the appraisal that is important to them, not your agreement with the seller on the sales price. Getting a verbal appraisal from a trusted appraiser can save you a lot of headaches. Also, be wary of last-minute small loans - consumer loans, credit cards, commodity loans - which can damage your credit score and the bank may not lend you the funds you need to buy the property in question because your income doesn't match the monthly payment.
Get information about the final transfer
The final transfer of a property involves additional fees - tax to the municipality where the property is located, notary fee, recording fee, notary fee for mortgage, minor notary fees for transcripts of documents. Be sure you know all these costs, without them the transaction cannot be finalized. Familiarize yourself with the text of the deed - this is your ownership document, you should be fully aware of what is inside, what you are declaring. Deed changes are quite expensive and lengthy procedures, especially if a banking institution is also listed.
Make a final inspection of the property
Check one last time what you are buying - whether there are any leaks or damage that have appeared during the duration of the preliminary contract, whether the owner has left all the furniture that you have agreed goes into the sale price. And most of all - stock up on plenty of patience, you'll sign a ton of paperwork before you get the keys to your new property and can safely move in and call yourself the owner.
