UNDER CONTRACT PROCESS

EARNEST MONEY DEPOSIT
At the time a written offer is initiated, you will be required by the seller to include a person check, cashier’s check, promissory note, or cash. The amount is deposited into the listing broker’s escrow account upon acceptance and will remain in escrow until the time of closing. This amount is credited to the buyer as partial down payment and represents your intent to purchase the property. If the offer is not accepted, this amount is returned to you. Depending on the price of the property, you should anticipate as much as ten percent (10%) of the contract price. These deposits can be held in an interest bearing account when requested.

TITLE INSURANCE
When property is being sold or refinanced, the lender and the buyer need a preliminary title commitment that will indicate exactly what recorded liens and encumbrances and recorded easements are currently in effect on the property. The title commitment will also indicate the vested owner of record and any restrictions on use of the subject property. Title insurance is required on all property in Colorado and is a Seller’s cost. However, the buyer is required to also furnish the lender with a lender’s policy showing the lender as a lien holder on that property. These charges will be incurred at the time of settlement as part of your closing cost. When the sale or loan of the property is final the title company has recorded the necessary documents and then will issue a title insurance policy to the new buyer and the lender showing clear title to the subject property.

INSPECT YOUR HOME
An inspection is performed after the contract has been accepted. The inspection is best performed by an independent professional third party.

The inspection will give a working knowledge of the systems in your new home and provide you with maintenance scheduling priorities.

The purpose of an inspection is to inform you about the condition of the primary systems of the home. Remember that the price you have paid is for the home in its present condition with normal wear and tear.