What is a Propety Loan?
In order to get Propety, or you can say “the deal”, you will need to complete three main parts. First of all, you will need to complete the purchase agreement. The purchase agreement is a document which binds and enables the parties to the transaction to legally bind each other, in terms of what taxes, refunds, etc… will be due to the seller. It is always a good idea to have this document drawn up by a Certified Public Accountant.
A Propety sale typically has two different types of closing: a quick closing and a standard closing. The quick closing involves a quick home sale with no formal transfer of title and the homeowner simply sells the property to the buyer under Propety. A Propety sale normally involves a very high level of due diligence on both the buyer and the seller, so that there is very little opportunity for problems down the road. For example, most states require homeowners to have title insurance coverage. If a problem occurs with the coverage, the lender usually has to make good on the insurance.
Title insurance also helps to protect a homeowner in the event that the lender is unable to pay the mortgage after the closing. In some cases, the title company may also require homeowners to sign a release of liability or responsibility for the deficiencies that led to the deficiency. A release of liability or responsibility relieves the lender in the event that there is a deficiency that could result in foreclosure or a lawsuit.
The second part of the transaction normally involves a title search. A title company or broker will run title searches on both the borrower and the seller. The buyer is called a “leeaser” and the seller is called a “borrower”. The purpose of the escrow is to ensure that a proper chain of title exists between the buyer and the lender. Once this chain of title has been verified, the buyer and the seller are considered “fully discharged”.
One of the final steps in the Propety sale involves an offer to transfer taxes. In some states, this step includes a fee known as an “assignment fee”. This fee is charged to the homeowner for the rights to the property held by the lender once the purchase agreement has been executed. This is common in Florida and California, but is not required in many other states.
At the closing, the buyer will give the loan officer an “offers to purchase” which will include an earnest payment. This is the final payment the homeowner must make to complete the transaction. The loan officer then takes the amount specified in the offer to the title company for closing costs. The Propety title company then resells the property to the buyer at the closing.