Easily renew your real estate license with the FREE 45 hour online license renewal package from C.A.R.
Distinguish yourself by learning how to build a business that specializes in niche markets to nearly double your earning potential in various real estate sectors
Browse our class schedule to find when and where to take real estate courses.
Prepare to earn your real estate license with our online courses. Get your California real estate license with OnlineEd. Price match guarantee. Mobile friendly. DRE-approved. Instructor Support. Start immediately!
Complete your eight-hour NMLS license renewal requirement through our NMLS-approved provider, OnlineEd
The main Business Meetings page includes important links for Directors and Committee Members. The next regularly scheduled C.A.R. Business Meeting takes place September 24-27, 2024 in Long Beach. The REimagine! Conference and Expo takes place September 24-26, 2024.
Check out NAR's upcoming meetings and conference schedule.
REimagine! Real Estate Conference & Expo is where learning takes center stage and where business solutions and connections are at the forefront of the real estate industry.
Learn how to schedule a C.A.R. outreach speaker for your next event and access presentations from previous outreaches.
View C.A.R's upcoming and past virtual events.
A one-stop shop for tools and and resources to educate consumers about the intricacies of buying and selling a home and how a REALTOR® can help.
Explore and interact with the latest market statistics.
Marketing tools from C.A.R.'s consumer advertising campaign
This information is designed for Real Estate Brokers and Office Managers to assist you in supporting your real estate business.
CCRE's mission is to advance industry knowledge and innovation with an emphasis on convening key experts and influence-makers.
Frequently Asked Questions about the Tax Cuts and Jobs Act
From webinars to videos and podcasts to blogs, C.A.R. keeps you in the know.
C.A.R. publishes four magazine issues and various newsletters throughout the year.
Transactions Business Tools Risk Management Meetings & Events Marketing Tools Knowledge Center Market Data MLS / Professional Standards Political Advocacy Make a Difference Member Benefits Contact UsTime to bring it home. Complete transactions and contracts electronically through zipForm®.
Realtor® Secure Transaction is your place to discover, access and master the essential tools for a modern, efficient and secure transaction.
Transaction management and forms software with all the must-have features, including current statewide contracts, local forms, and more.
Free advice to help you understand the form you're using with Forms Tutor® and identify which form you need for your transaction with Forms Advisor™
C.A.R. Standard Forms are developed by the C.A.R. Legal Department which gathers input from real estate professionals and attorneys to create user-friendly, comprehensive, and dependable forms.
Become certified as a Home Inspector or connect with a certified Inspectors and Transaction Coordinator.
We're here to help, people! Business products and tools to empower REALTORS®.
Your one-stop-source for exclusive offers, discounts, and free trials.
Everything you need for a successful property management & leasing business
A collection of educational and technology resources designed to help you achieve profitability and better prepare for your financial present and future.
Download the latest C.A.R. mobile apps, including CARmojis & Stickers, C.A.R., Legal Hotline, CA REALTOR® EXPO, and zipForm Mobile.
Q: Where do I go to get legal questions answered? A: Easy, look to the right!
Practice tips for how to comply with the new broker compensation rules. Learn how to use forms, talk to clients, and meet your legal and other obligations.
Legal articles, many in question and answer format, are currently available on over 150 subjects in 50-plus categories.
Quick Guides (1-page articles) and PowerPoint presentations on key legal topics.
Wish you could catch up on California real estate law without having to read even more documents? Relax and watch a video as C.A.R.’s Legal Live Webinars bring you up-to-date on the hottest topics in real estate law.
While you’re driving to your next meeting, would like our attorneys to update you on how to best protect yourself and your clients? Subscribe to our Legal Matters Podcast, and we’ll bring the most critical information right to your device.
Need help on a legal issue? First, pick one of the topics.
The Legal Action Fund advocates the REALTOR® point of view and assists in lawsuits pivotal to the real estate industry. Learn more about how the Legal Action Fund supports you in your business.
Important industry cases, resources and information
Current legal developments, C.A.R. legal products and services.
Explore the implications of the landmark Burnett v NAR antitrust lawsuit's outcome for REALTORS®, the industry, and your business.
Help, I need backup! Whether it's legal or financial help you need, C.A.R.'s got your back with these resources.
If you're a member looking to resolve a minor dispute or communication issue with another REALTOR ® , a C.A.R. ombudsman may be able to help!
C.A.R. REALTOR® volunteers are specifically trained and are available to answer questions from other members about the Code of Ethics, and can provide information and limited counseling concerning its proper interpretation.
Your lifeline to the lending community formerly known as the Finance Helpline and Mortgage Rescue™. Find contacts and answers to all mortgage related questions, and problems that arise in your real estate transaction. Get assistance today!
Need assistance on Transactions – zipForm Edition, purchasing a course, or other general membership questions? The Customer Contact Center is only a phone call away.
The C.A.R. Real Estate Mediation Center for Consumers has mediators available to assist buyers and sellers (as well as other parties to real estate transactions) in resolving their disputes.
Did you know that for zero dollars and zero cents, you can speak with an attorney about your transaction? If you don't believe us, check it out yourself.
We offer a wide array of real estate educational courses, certifications & designations in various formats.
Easily renew your real estate license with the FREE 45 hour online license renewal package from C.A.R.
Distinguish yourself by learning how to build a business that specializes in niche markets to nearly double your earning potential in various real estate sectors
Browse our class schedule to find when and where to take real estate courses.
Prepare to earn your real estate license with our online courses. Get your California real estate license with OnlineEd. Price match guarantee. Mobile friendly. DRE-approved. Instructor Support. Start immediately!
Complete your eight-hour NMLS license renewal requirement through our NMLS-approved provider, OnlineEd
Mark your calendars for our yearly meetings and events!
The main Business Meetings page includes important links for Directors and Committee Members. The next regularly scheduled C.A.R. Business Meeting takes place September 24-27, 2024 in Long Beach. The REimagine! Conference and Expo takes place September 24-26, 2024.
Check out NAR's upcoming meetings and conference schedule.
REimagine! Real Estate Conference & Expo is where learning takes center stage and where business solutions and connections are at the forefront of the real estate industry.
Learn how to schedule a C.A.R. outreach speaker for your next event and access presentations from previous outreaches.
View C.A.R's upcoming and past virtual events.
You're the brand! Use our marketing tools to tell your story.
A one-stop shop for tools and and resources to educate consumers about the intricacies of buying and selling a home and how a REALTOR® can help.
Explore and interact with the latest market statistics.
Marketing tools from C.A.R.'s consumer advertising campaign
Got knowledge? All the info you need on California’s housing market, economy, and issues impacting the industry.
This information is designed for Real Estate Brokers and Office Managers to assist you in supporting your real estate business.
CCRE's mission is to advance industry knowledge and innovation with an emphasis on convening key experts and influence-makers.
Frequently Asked Questions about the Tax Cuts and Jobs Act
From webinars to videos and podcasts to blogs, C.A.R. keeps you in the know.
C.A.R. publishes four magazine issues and various newsletters throughout the year.
Be trendy -- stay current with our latest market forecasts and data analyses.
The latest housing market forecast and projection to what lays ahead.
View the latest sales and price numbers. Find out where sales will be in upcoming months.
Your housing hub for market analysis, economic trends, and housing news.
Watch our C.A.R. economists provide updates on the latest housing market data and happenings. quickly!
Get a roundup of weekly economic and market news that matters to real estate and your business.
Gain insights through interactive dashboards and downloadable infographic reports.
Catch up with the latest outreaches and webinars by the Research and Economics team.
C.A.R. conducts survey research with members and consumers on a regular basis to get a better understanding of the housing market and the real estate industry.
You’ve gone pro! So here are guidelines about MLS rules and professional standards.
California Model MLS Rules, Issues Briefing Papers, and other articles and materials related to MLS policy.
Looking for information on how to file an interboard arbitration complaint? You've come to the right place! Find the rules, timeline and filing documents here.
Summaries and photos of California REALTORS® who violated the Code of Ethics and were disciplined with a fine, letter of reprimand, suspension, or expulsion.
The most recent edition of the Code of Ethics and Standards of Practice of the National Association of REALTORS® along with other important links to NAR information.
The California Professional Standards Reference Manual, Local Association Forms, NAR materials and other materials related to Code of Ethics enforcement and arbitration.
An industry that works together, thrives together. Participate in legislative advocacy as a C.A.R. member!
C.A.R. advocates for REALTOR® issues in Washington D.C., Sacramento and in city and county governments throughout California.
CREPAC, LCRC, IMPAC, ALF and the RAF comprise C.A.R.'s political fundraising arm.
Unlocking the California 2024 State Budget
Learn how you can make a difference, by getting involved yourself or by passing along valuable information to your clients.
Represent! Join C.A.R. in our community and foundation programs.
Californians for Homeownership was founded in response to the California Legislature’s call for public interest organizations to fight local anti-housing policies on behalf of the millions of California residents who need access to more affordable housing.
The Champions of Home Impact Awards honor California REALTORS® who have made a significant impact on their communities through volunteer efforts.
HAF plays an active role in addressing the ongoing housing affordability challenges facing California.
C.A.R. stands ready to assist REALTORS® who have been impacted by wildfires through its Disaster Relief Fund and NAR's REALTORS® Relief Foundation.
Scholarships for California students planning to pursue a career in real estate.
Grants for California REALTORS® and residents pursuing real estate education.
Find out more information on key diversity and inclusion programs and projects available.
New to the industry? YPN is a network to sharpen your skills, heighten your leadership, and connect with fellow REALTORS®.
Adding REALTOR® next to your name is cool. What comes with that title is even cooler. Check out your benefits.
Download and share the official 2024 C.A.R. Member Benefits Guide.
As a C.A.R. member you may have questions about your association and the industry. Find the answers here.
C.A.R. provides tremendous member value through its innovative tools, services and education. Learn more about C.A.R. membership and dues and NAR membership and dues.
C.A.R.'s annual consumer advertising campaign creates awareness of the REALTOR® brand and demonstrates the many benefits of the consumer-REALTOR® relationship.
Smart Zone provides tools and insights necessary to convey your unique value proposition, effectively market your services, keep your clients abreast of current real estate market trends and help you achieve success in a dynamic industry.
This is so us. who we are and what we do.
Meet the 2024 C.A.R. Leadership Team
C.A.R. is a statewide trade association dedicated to the advancement of professionalism in real estate.
The CALIFORNIA ASSOCIATION OF REALTORS® is committed to bring you tools and information to help you succeed. Here are some of the innovative tools, services and education C.A.R. provided to help you achieve your professional goals.
C.A.R.'s Media Center houses the Association's news releases, media guidelines, and logos.
C.A.R. and its subsidiaries are currently recruiting for the following job opportunities.
Partner With Us
Learn about advertising with C.A.R.
Whichever department you are looking to speak with, don't hesitate to reach out! We'd love to hear from you.
Looking for additional assistance? The Customer Contact Center is looking forward to serving you Monday through Friday between the hours of 8:30 a.m. and 4:45 p.m.
Need help finding the right person? Try searching through our various rosters & directories.
Time to bring it home. Find zipForm ® , transaction tools, and all the closing resources you'll need. Except for the champagne — that's on you.
Take your professional development up a few notches. Here you'll find educational materials, marketing tools, training videos, and more to keep you on top of your game.
We want you to feel like a champion every day. Find information on market data, government affairs, legislation, and trending industry issues.
We're here to support you in every way possible. Learn more about your discounts, benefits and how your C.A.R. membership can help you succeed.
Time to bring it home. Complete transactions and contracts electronically through zipForm®.
We're here to help, people! Business products and tools to empower REALTORS®.
Q: Where do I go to get legal questions answered? A: Easy, look to the right!
Help, I need backup! Whether it's legal or financial help you need, C.A.R.'s got your back with these resources.
We offer a wide array of real estate educational courses, certifications & designations in various formats.
Mark your calendars for our yearly meetings and events!
You're the brand! Use our marketing tools to tell your story.
Got knowledge? All the info you need on California’s housing market, economy, and issues impacting the industry.
Be trendy -- stay current with our latest market forecasts and data analyses.
You’ve gone pro! So here are guidelines about MLS rules and professional standards.
An industry that works together, thrives together. Participate in legislative advocacy as a C.A.R. member!
Represent! Join C.A.R. in our community and foundation programs.
Adding REALTOR® next to your name is cool. What comes with that title is even cooler. Check out your benefits.
This is so us. who we are and what we do.
Whichever department you are looking to speak with, don't hesitate to reach out! We'd love to hear from you.
Realtor® Secure Transaction is your place to discover, access and master the essential tools for a modern, efficient and secure transaction.
Transaction management and forms software with all the must-have features, including current statewide contracts, local forms, and more.
Free advice to help you understand the form you're using with Forms Tutor® and identify which form you need for your transaction with Forms Advisor™
C.A.R. Standard Forms are developed by the C.A.R. Legal Department which gathers input from real estate professionals and attorneys to create user-friendly, comprehensive, and dependable forms.
Become certified as a Home Inspector or connect with a certified Inspectors and Transaction Coordinator.
Your one-stop-source for exclusive offers, discounts, and free trials.
Everything you need for a successful property management & leasing business
A collection of educational and technology resources designed to help you achieve profitability and better prepare for your financial present and future.
Download the latest C.A.R. mobile apps, including CARmojis & Stickers, C.A.R., Legal Hotline, CA REALTOR® EXPO, and zipForm Mobile.
Practice tips for how to comply with the new broker compensation rules. Learn how to use forms, talk to clients, and meet your legal and other obligations.
Legal articles, many in question and answer format, are currently available on over 150 subjects in 50-plus categories.
Quick Guides (1-page articles) and PowerPoint presentations on key legal topics.
Wish you could catch up on California real estate law without having to read even more documents? Relax and watch a video as C.A.R.’s Legal Live Webinars bring you up-to-date on the hottest topics in real estate law.
While you’re driving to your next meeting, would like our attorneys to update you on how to best protect yourself and your clients? Subscribe to our Legal Matters Podcast, and we’ll bring the most critical information right to your device.
Need help on a legal issue? First, pick one of the topics.
The Legal Action Fund advocates the REALTOR® point of view and assists in lawsuits pivotal to the real estate industry. Learn more about how the Legal Action Fund supports you in your business.
Important industry cases, resources and information
Current legal developments, C.A.R. legal products and services.
Explore the implications of the landmark Burnett v NAR antitrust lawsuit's outcome for REALTORS®, the industry, and your business.
If you're a member looking to resolve a minor dispute or communication issue with another REALTOR ® , a C.A.R. ombudsman may be able to help!
C.A.R. REALTOR® volunteers are specifically trained and are available to answer questions from other members about the Code of Ethics, and can provide information and limited counseling concerning its proper interpretation.
Your lifeline to the lending community formerly known as the Finance Helpline and Mortgage Rescue™. Find contacts and answers to all mortgage related questions, and problems that arise in your real estate transaction. Get assistance today!
Need assistance on Transactions – zipForm Edition, purchasing a course, or other general membership questions? The Customer Contact Center is only a phone call away.
The C.A.R. Real Estate Mediation Center for Consumers has mediators available to assist buyers and sellers (as well as other parties to real estate transactions) in resolving their disputes.
Did you know that for zero dollars and zero cents, you can speak with an attorney about your transaction? If you don't believe us, check it out yourself.
Easily renew your real estate license with the FREE 45 hour online license renewal package from C.A.R.
Distinguish yourself by learning how to build a business that specializes in niche markets to nearly double your earning potential in various real estate sectors
Browse our class schedule to find when and where to take real estate courses.
Prepare to earn your real estate license with our online courses. Get your California real estate license with OnlineEd. Price match guarantee. Mobile friendly. DRE-approved. Instructor Support. Start immediately!
Complete your eight-hour NMLS license renewal requirement through our NMLS-approved provider, OnlineEd
The main Business Meetings page includes important links for Directors and Committee Members. The next regularly scheduled C.A.R. Business Meeting takes place September 24-27, 2024 in Long Beach. The REimagine! Conference and Expo takes place September 24-26, 2024.
Check out NAR's upcoming meetings and conference schedule.
REimagine! Real Estate Conference & Expo is where learning takes center stage and where business solutions and connections are at the forefront of the real estate industry.
Learn how to schedule a C.A.R. outreach speaker for your next event and access presentations from previous outreaches.
View C.A.R's upcoming and past virtual events.
A one-stop shop for tools and and resources to educate consumers about the intricacies of buying and selling a home and how a REALTOR® can help.
Explore and interact with the latest market statistics.
Marketing tools from C.A.R.'s consumer advertising campaign
This information is designed for Real Estate Brokers and Office Managers to assist you in supporting your real estate business.
CCRE's mission is to advance industry knowledge and innovation with an emphasis on convening key experts and influence-makers.
Frequently Asked Questions about the Tax Cuts and Jobs Act
From webinars to videos and podcasts to blogs, C.A.R. keeps you in the know.
C.A.R. publishes four magazine issues and various newsletters throughout the year.
The latest housing market forecast and projection to what lays ahead.
View the latest sales and price numbers. Find out where sales will be in upcoming months.
Your housing hub for market analysis, economic trends, and housing news.
Watch our C.A.R. economists provide updates on the latest housing market data and happenings. quickly!
Get a roundup of weekly economic and market news that matters to real estate and your business.
Gain insights through interactive dashboards and downloadable infographic reports.
Catch up with the latest outreaches and webinars by the Research and Economics team.
C.A.R. conducts survey research with members and consumers on a regular basis to get a better understanding of the housing market and the real estate industry.
California Model MLS Rules, Issues Briefing Papers, and other articles and materials related to MLS policy.
Looking for information on how to file an interboard arbitration complaint? You've come to the right place! Find the rules, timeline and filing documents here.
Summaries and photos of California REALTORS® who violated the Code of Ethics and were disciplined with a fine, letter of reprimand, suspension, or expulsion.
The most recent edition of the Code of Ethics and Standards of Practice of the National Association of REALTORS® along with other important links to NAR information.
The California Professional Standards Reference Manual, Local Association Forms, NAR materials and other materials related to Code of Ethics enforcement and arbitration.
C.A.R. advocates for REALTOR® issues in Washington D.C., Sacramento and in city and county governments throughout California.
CREPAC, LCRC, IMPAC, ALF and the RAF comprise C.A.R.'s political fundraising arm.
Unlocking the California 2024 State Budget
Learn how you can make a difference, by getting involved yourself or by passing along valuable information to your clients.
Californians for Homeownership was founded in response to the California Legislature’s call for public interest organizations to fight local anti-housing policies on behalf of the millions of California residents who need access to more affordable housing.
The Champions of Home Impact Awards honor California REALTORS® who have made a significant impact on their communities through volunteer efforts.
HAF plays an active role in addressing the ongoing housing affordability challenges facing California.
C.A.R. stands ready to assist REALTORS® who have been impacted by wildfires through its Disaster Relief Fund and NAR's REALTORS® Relief Foundation.
Scholarships for California students planning to pursue a career in real estate.
Grants for California REALTORS® and residents pursuing real estate education.
Find out more information on key diversity and inclusion programs and projects available.
New to the industry? YPN is a network to sharpen your skills, heighten your leadership, and connect with fellow REALTORS®.
Download and share the official 2024 C.A.R. Member Benefits Guide.
As a C.A.R. member you may have questions about your association and the industry. Find the answers here.
C.A.R. provides tremendous member value through its innovative tools, services and education. Learn more about C.A.R. membership and dues and NAR membership and dues.
C.A.R.'s annual consumer advertising campaign creates awareness of the REALTOR® brand and demonstrates the many benefits of the consumer-REALTOR® relationship.
Smart Zone provides tools and insights necessary to convey your unique value proposition, effectively market your services, keep your clients abreast of current real estate market trends and help you achieve success in a dynamic industry.
Meet the 2024 C.A.R. Leadership Team
C.A.R. is a statewide trade association dedicated to the advancement of professionalism in real estate.
The CALIFORNIA ASSOCIATION OF REALTORS® is committed to bring you tools and information to help you succeed. Here are some of the innovative tools, services and education C.A.R. provided to help you achieve your professional goals.
C.A.R.'s Media Center houses the Association's news releases, media guidelines, and logos.
C.A.R. and its subsidiaries are currently recruiting for the following job opportunities.
Partner With Us
Learn about advertising with C.A.R.
Looking for additional assistance? The Customer Contact Center is looking forward to serving you Monday through Friday between the hours of 8:30 a.m. and 4:45 p.m.
Need help finding the right person? Try searching through our various rosters & directories.
C.A.R. releases forward-looking forms. READ MORE
Now that you've found the perfect home, it's time to get the deal rolling. You'll need to sign a residential purchase agreement, make an offer, possibly put down a deposit, conduct inspections and close the sale. If this all sounds overwhelming to you, don't worry; your REALTOR® will guide you through each step.
Making An Offer/Residential Purchase Agreements and Buyer Representation Agreements
If you're ready to purchase the home, you must get all the details in writing. The offer begins with a written proposal spelling out your price and any stipulations regarding the purchase. If the seller has agreed to pay part of the closing costs, for example, that needs to be specified in the accepted offer. In addition, sometimes offers to purchase are contingent upon factors like the buyers' ability to obtain financing or the sellers finding housing within a certain time frame.
The residential purchase agreement contains the comprehensive terms of the deal, including sales price, deposit, closing date, disclosure requirements, inspections, and fees agreed upon by both parties. Other provisions also are included, such as the buyer's final inspection and the method by which all real estate taxes and other bills will be pro-rated between buyer and seller.
The CALIFORNIA ASSOCIATION OF REALTORS® offers its own official agreement, the C.A.R. Residential Purchase Agreement and Joint Escrow Instructions (RPA-11). This multi-functional document serves as an offer to purchase real property, a completed contract when its signed by the buyer and seller and communication of acceptance is received, a receipt for good faith earnest money deposit, and more.
In response to requests from C.A.R. members practicing in the greater San Francisco Bay Area, C.A.R. developed a second version of its RPA-11 in late 2000. The Area Edition Residential Purchase Agreement (and Joint Escrow Instructions) (AEPA-11) addresses the contractual approach to the real estate transaction adopted in this area of the Golden State. The publications Understanding and Completing The C.A.R. Residential Purchase Agreement and Joint Escrow Instructions and the Area Edition Supplement to Understanding and Completing The C.A.R. Residential Purchase Agreement and Joint Escrow Instructions explain both forms in detail.
Another standard form produced by C.A.R. and typically used by California REALTORS®, BR-11 (Buyer Broker Representation Agreement) is an agreement between a potential buyer of real property and a real estate broker. The agreement defines the scope of the tasks and duties to be performed by the buyer and broker leading up to the completion of a real estate sale. The form also provides a written consent to a dual agency if one develops, and informs the buyer that the broker or agents for the broker may be working with other buyers looking for similar properties. The agreement does not, however, obligate a buyer to pay the broker for services rendered. Even if an agreement is signed, a broker must still look to a seller or a listing broker for compensation. This form is non-exclusive and may be revoked at any time by either the buyer or broker. In addition, the agreement places a limit on the time within which a legal action can be brought against the broker. More information about C.A.R.'s buyer-broker representation agreements is available by clicking here.
There are ways for buyers to look more appealing to a seller, thereby possibly gaining a negotiating edge. All-cash buyers and those already pre-approved for a mortgage have an advantage. In addition, sellers who are ready to move prefer buyers who don't have a present house to sell first.
An offer to purchase is often followed by a counteroffer by the seller, which can be countered again by the buyer. This is common practice as both sides attempt to negotiate an agreement that meets their individual needs.
Completing the residential purchase agreement is a complicated part of the transaction process that buyers shouldn't enter into without the assistance of a REALTOR®. REALTORS® have access to the standard forms needed and receive updates from their local, state and national associations on state and federal laws regulating agreements. REALTORS® can either answer any questions you might have or refer you to the appropriate authority.
In conjunction with the residential purchase agreement, buyers are usually expected to put down a deposit at the beginning of the transaction. If the buyer completes the sale, this money will be credited toward the buyer's downpayment. If the buyer doesn't complete the sale for legal or contractual reasons, the money is typically returned. However, if the buyer doesn't complete the sale for other reasons, the seller may be entitled to keep the deposit. The U.S. Department of Housing and Urban Development (HUD) advises that deposits should be "substantial enough to demonstrate good faith," usually 1 to 5 percent of the purchase price. Often, buyers may put up to 20 percent down.
Because buyers frequently pay for most inspections, it may be a good idea to investigate the costs of the inspections you plan to obtain before an offer is made.
Home inspections vary greatly. Some check the home's structure, construction and mechanical systems, and appliances, which may be transferred with the property. Although different inspectors look for and test different things and may not discover everything that is wrong with a property, obtaining inspections is the best way to become informed of necessary repairs or problems with the home. Be advised that inspectors do not assess the value of your home.
According to HUD, an inspector typically checks the electrical system, plumbing and waste disposal, the water heater, insulation and ventilation, the HVAC system, water source and quality, ceilings, walls, floors, and roof.
In addition to being inspected, the home will undergo an appraisal by a trained professional. An appraisal is an opinion of the property's value used primarily to protect the lender's interest. In contrast to home inspections, appraisals are based on past sales data, the location of the home, the size of the lot and the condition of the home. For mortgages insured through the FHA, appraisers must disclose potential problems relating to the physical condition of the home; there are no similar stipulations for non-FHA mortgages.
The closing is the day you've been waiting for: when ownership of the home officially transfers from the seller to you! Prior to the closing, the escrow agent will present you with scores of legal documents to review and sign, and you'll be expected to pay your downpayment and closing costs. In addition, a number of other legal procedures must be completed before the sale can close, including approving the mortgage application, clearing the title, appraising the property and recording the deed.
The Real Estate Settlement Procedures Act (RESPA) provides specific protection to buyers before, during and after closing. If a settlement service has referred you to a REALTOR® with whom the service has a business connection, an Affiliated Business Arrangement Disclosure is required prior to closing. You're entitled to receive a preliminary copy of a HUD-1 Settlement Statement, which lists estimates of all settlement fees to be paid by buyer and seller, if you request it 24 hours before closing; the final HUD-1 Statement is a requisite part of closing. In addition, an Initial Escrow Settlement Statement is required at closing or within 45 days of closing. This details the estimated taxes, insurance premiums and other charges that must be paid from the escrow account during the first year of the loan.
Within three days after your loan application is received, your lender must deliver or mail you a "good faith estimate" of the total amount due at closing, as well as a copy of the HUD publication Settlement Costs: A HUD Guide. Closing costs typically are comprised of attorneys' or escrow fees, property taxes, interest, loan origination fees, recording fees, survey fees, first premium of mortgage insurance, title insurance, loan discount points, first payment to escrow account, paid receipt for homeowner's insurance policy and any documentation preparation fees. Fannie Mae estimates that most buyers' closing costs amount to 3 to 6 percent of the sales price.
As with the other components of the buying transaction, your REALTOR® can answer your questions and provide additional information to ensure a smooth closing.
