When it is about selling your home, preparing for the paperwork is the most daunting task. Different regions have different requirements. So, if you are in California and wish to sell your home, here is a list of things you need to know;
Facts Which Affect the Desirability of the Property need to be disclosed in Writing:
Yes, for the residents of California, it is essential to disclose the details about the property which may affect the potential buyer’s desire to purchase it. This is to be done in a written form. It is often referred to ‘material’ facts.
Actually, in California, the material facts are described in a ‘Transfer Disclosure Statement’ or TDS. This accurately describes the condition of the property, including condition of the property’s floors, insulation, walls, ceiling, roof, windows, doors, foundation, fences, electrical systems, driveways, sidewalks, plumbing systems, and so on.
Sellers Need Assistance of a Title Company and Know about the Buyer’s Title Insurance:
For you, it will be the title company to conduct a title search and write a Preliminary Title Report (PTR). Based upon the PTR, title insurance company offers title insurance to the buyer. Basically, both home seller and buyer need to make an agreement on a title company and title insurance company.
Here you need to be aware of the RESPA (Real Estate Settlement Procedures Act), which prohibits the seller from asking a buyer for any particular title insurance company. Definitely, you can negotiate with your buyer regarding the payment.
Home Sellers in California Need an Escrow Agent:
It is a must have in order to facilitate the sale. Being compulsory for both, buyers and sellers in California, the seller is required to deposit the deed and the buyer will deposit funds in escrow. And it will be the escrow company to hold these items for safekeeping. Generally buyer suggests an escrow holder in the initial offer; however, parties can negotiate and mutually choose an escrow holder.
Sellers Might Have To Pay A Transfer Tax:
A document must be recorded at the county recorder’s office, at the time when real estate is transferred to the buyer. It is done in order to show that the property has changed ownership. And at the same time, a transfer tax is imposed. Now who pays the transfer tax can be negotiated with the buyer. It varies from region to region.