100 Things to Watch for in a Real Estate Transaction

For your Bend, Oregon real estate (or nearly any city/state!) transaction to go smoothly and close escrow on time, each of the parties involved in the process must play their role. Here are 100 things to watch for in a real estate transaction and who is responsible for them: buyer/borrower, seller, REALTORS®, the lender, the property, escrow/title company,

Responsibilities of the Buyer/Borrower:

  1. Pay credit card on time to avoid damage to credit report.
  2. Tell the truth on the loan application.
  3. Find out about any additional debts before the loan application.
  4. Borrower must remain employed.
  5. Co-borrower must remain employed.
  6. Make sure that income verification is not lower than that what is stated on the loan application.
  7. If applicable, make sure that overtime income is allowed by the underwriter for qualifying.
  8. The borrower/co-borrower should not make any large purchase on credit before closing.
  9. Do their best to avoid divorce, injury, illness or any other financial setback during escrow.
  10. Have necessary bank statements available.
  11. If applicable, have divorce papers available.
  12. Must stay motivated throughout the process.
  13. If applicable, the gift donor must not change his/her mind.
  14. If applicable, make sure the bankruptcy petition or the discharge are located on time.
  15. Have necessary tax returns available.
  16. If applicable, obtain the rent verification.
  17. Be aware of any changes to the loan program with the higher rates, fees and points.
  18. Borrower should qualify for more than they intend to spend to qualify should interest rates increase.
  19. If applicable, have disclosure of child support.
  20. Ensure that mortgage payments don’t double that of previous housing payments.
  21. Should not have filed for bankruptcy in last 2 years.
  22. Borrower should not switch from a job with salary to a job with 100 percent commission income.
  23. Borrower should not switch to a job with a probation period.
  24. Borrower should not bring handwritten pay stubs.
  25. Buyer should confirm that the property is represented correctly.
  26. Borrower must have a steady employment history of two years.
  27. co-borrower must have a steady employment history of two years.
  28. Buyer should have some flexibility in his/her price range.
  29. Buyer should make sure that she/he does is not short of money at closing.
  30. Buyer must bring a cashier’s check to the title company for the closing costs
  31. Buyer must provide a cashier’s check to the title company for the down payment.
  32. If applicable, the Veterans DD214 form must be available.
  33. Buyer should properly account for any additional money which comes from loans, gifts, etc. in writing.

Responsibilities of the Seller:

  1. Find a new place to live.
  2. Stay motivated to sell the property (reasons sellers back out: reconciles marriage, job transfer is cancelled, etc.)
  3. Should not remove items from the property which the buyer believes are included.
  4. Allow the appraiser inside the home in a timely manner.
  5. Allow the inspectors inside the home in a timely manner.
  6. Clear up any liens while making sure he/she has enough cash to close.
  7. The seller must own 100 percent of the property unless disclosed previously.
  8. Should not leave town without assigning Power of Attorney.
  9. If applicable, must get the signature of partners or co-owners.
  10. Should not delay the move-out date.
  11. Should complete the agreed upon repairs.
  12. Make sure the property does not go into foreclosure during escrow.
  13. Must disclose property problems and defects according to applicable disclosure form.
  14. Should provide information about the home and the neighborhood.

Responsibilities of the REALTORS®(s):

  1. Manage timing for their client, the buyer/seller to complete their tasks during the transaction.
  2. Complete and deliver paperwork on time.
  3. Provide timely access to the property for appraisals.
  4. Provide timely access to the property for inspections.
  5. Have experience similar property transactions.
  6. Provide correct information to the other parties in the transaction.
  7. Should not take any unexpected time off during the transaction.
  8. Must ensure that he/she can be contacted easily.
  9. Do sufficient research on the property.
  10. Understand the buying ability of clients.

Responsibilities of the Lender(s):

  1. Properly prequalify the buyers.
  2. Communicate any changes to market rates,
  3. Communicate any changes to loan costs.
  4. Communicate any changes to points.
  5. Lender should ask for all the information needed.
  6. Timely submission of information should be ensured to avoid disqualification.
  7. Should avoid last minute 2nd appraisals.
  8. Should avoid asking for other documents at the last minute.
  9. Make sure every form and the entire file is stored securely.
  10. Forms should be timely produced whenever required.
  11. Fund the loan in time for the closing.

Responsibilities Related to The Property:

  1. Buyer and seller must agree on financial responsibility for needed repairs that come up during the inspection.
  2. If applicable, septic system must be in good working order.
  3. If applicable, well must be in good working order.
  4. Correct information should be given about the home size.
  5. Correct information should be given about the condition of the home.
  6. Homeowner should make sure that the home is insurable for his/her insurance.
  7. Property should be inspected before purchase to ensure that the home is structurally sound.
  8. No portion of the home or land should be on the property of a neighbor.
  9. It should be confirmed that the property was zoned correctly.
  10. Should the home be particularly unique, thorough research should be done to find comparable properties for appraisal.

Responsibilities of the Escrow/Title Company:

  1. Properly prepare paperwork.
  2. Keep track of paperwork.
  3. Track down relevant information from beneficiaries if applicable.
  4. Track down relevant information from insurance companied.
  5. Track down relevant information from lien holders.
  6. Track down relevant information from lenders.
  7. Notify the agents/lender of unreturned or unsigned documents.
  8. Get the necessary signatures from the principals before letting them leave the town.
  9. Coordinate well, so that many things can be simultaneously done.
  10. Pass critical information on quickly.
  11. Be thorough in finding title problems.
  12. Alert transaction parties quickly of problems that could delay closing.

Responsibilities of the Appraiser:

  1. Understand the market conditions properly to appropriately appraise the property.
  2. Complete the appraisal in a timely manner
  3. Deliver the appraisal in a timely manner.
  4. Should have some comparable sales available.
  5. Complete appraisal quickly should a lender requires a review appraisal.
  6. Avoid mistakes on appraisal.
  7. Confirm that the value is correct prior to submittal.

Responsibilities of the Inspectors:

  1. Be available to complete the inspection within the time frame required.
  2. Reasonably assess property without unnecessary alarm to buyer/seller.
  3. The pest inspectors should be available when required.
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