Understanding the Closing and Due Diligence Process

It’s the last call for alcohol. Pro tip: Choose a realtor that isn’t a half-drunk.

There are 3 Major Inspections you need to do during the closing part of a real estate transaction:

• Title inspection
• Document inspection
• Physical Inspection

When a piece of real estate is sold, a bundle of rights is transferred from one owner to another through what’s known as a deed

Easements and covenants on title are fairly commonplace, whereas a lien on a title is a make or break addition

So a clear title is one that is free of liens, meaning another party has the ability to foreclose on the property

Title Company or Attorney:

• Title insurance covers financial damage that may be caused by the title

Document inspection:

• More or less to review depending on the type of property

Seller disclosures:
Seller’s tax returns are a very truth-telling document

Current leases if the property is a current rental property you want to inspect the lease thoroughly because remember that the lease comes right with the property

Current rent roll: list of all current tenants, their rent amount, move-in-date, and lease arm's length