Once the purchase agreement is accepted and signed by
all parties to the transaction, the escrow company will receive, hold and
disburse all funds associated with your transaction. You also will have contingency periods, which vary by property type, i.e., commercial
properties; residential (1-4 units); multi family; apartments; etc. The typical contingencies in
residential income (1-4 units) are: approval of seller’s transfer disclosure
statement (TDS); lead-based paint disclosure; preliminary title report; your
loan approval, including property appraisal; physical inspections (property
inspection, geological inspection, mold, asbestos, lead based paint and other
hazards inspections); pest inspection and certification; and insurability.
You also want to verify rents and tenants’ deposits.
You can do this by requiring that all tenants complete and sign an estoppel
certificate. Your real estate agent will be able to best advise you about
federal, state, and local requirements for disclosures and inspections.
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