You are here:
- Home
- Real Estate
- Home Buying/Selling
- Buying or Selling a Home
- Procedures regarding closing
Buying or Selling a Home/Procedures regarding closing
Advertisement
Question
I'm a first time home buyer & also a cash buyer. The closing date is going to be 3 months from today. I will be retaining the service of a real estate attorney to do all the necessary work relating to documents, title insurance, etc. as pertain to the closing. But do I have to give the attorney the sum of $200,000.00 (balance on the house)in cash, check, etc. to put into a special fund prior to the closing date? That's what my realtor told me the procedure is going to be, but I'm uneasy in handing over my whole life savings to a "complete stranger" not knowing if he/she is going to take my money & disappears who knows where. Please advise.
Dear Alice;
I do not practice real estate in New Jersey but I can tell you that anywhere that I have sold homes or heard of home purchases the cash deposit (which is the earnest money deposit)is the only part of the transaction that is held by an attorney in a trust account. During that time the money is accounted for and must be held while the rest of the inspections and conditions and terms are satisfied. At the time of the closing the rest of the funds are dispersed; the seller is paid and the property is recorded with a deed delivered to the the new owner. I am suspicious of all funds being deposited early. If I were you I would call several reputable agents to inquire about the standard practice.
Best wishes,
Jessica Bryan
Related Articles
Answers by Expert:
- Dick Dennis
- Jessica Bryan
- liznarr
- Hans Weber, Licensed Broker Associate
- Sue Bernstein
- Karyn Foley
- Dottie Worthington
- Jim Root
- Russel Ray
- Connie Wildasinn-Broker,GRI,RealtorŪ
- Todd C. Menard
- Diann Tonnesen
- John Hendricks
- Jay Denit
- Matt Heisler
- Lisa Webber
- John
- Laurie Stephenson
- Marvin G. Bobbitt, III
- Nori J. Muster
- Sharon Huneycutt, Realtor, Associate Broker, GRI, e-PRO
- CJ Brasiel
- Jeff Kessler
- Kathryn Hisert
- Emily
- Ted Lewis
- Kerrin Kostelic, FL Broker Associate, GRI, AHWD
- Tim Norris
Jessica Bryan
Expertise
buying and selling process such as:
General questions from first time buyers
How to market a home
Why choose a REALTOR
How do I find a REALTOR
Should I consider buying or selling without a REALTOR--how much can I save
Should I remodel or move
How much can I expect to gain by fixing up my home before selling
Helpful tips when selling
Helpful tips when buying
finding a good mortgage loan
what is the difference between banks, mortgage bankers, and mortgage brokers
Questions from the general public, people thinking about getting their real estate license, newly licensed.
Fellow professionals who have interests in networking and how to get started
What is a market evaluation and how does it differ from an appraisal what are the different loan programs
services a REALTOR can perform
when to use a lawyer
when to use escrow
what are the regional differences in the buying and selling process
what is the MLS and how does it work
how can the layman access information on the web--listings and other information
These are just a few of the questions. I can suggest that if I am unable to answer a question I will refer the inquiry to a source that can.
Experience
Anyone who is in this business and who dedicates oneself to professionalism has continued to take classes and along with it,additional credentials, awards and honors. I can list a host of them, but my greatest accomplishments happen to be those of getting first time buyers (who didn't think they could afford to buy a home)into a home of their dreams. The look on their faces when I hand over the keys is worth all of the hard work.
©2012 About.com, a part of The New York Times Company. All rights reserved.