Buying a home does not arise in a space; it involves only you and your seller. There are all types of people and services involved after the scenes to make it happen. Since some of these services involve both you and the seller, there would have to be agreement on which companies you would use for them. When you make your offer, you must request your favorites for these services. If you are new with these service providers, you could get suggestions from your agent.
Escrow and Settlement
For example, you are going to want an escrow or settlement company to act as an "independent third party" among you and the seller. Without having a third party involved, how do you know that when you split over the money, you are going to get the deed? This is the kind of service provided by escrow and settlement. They would hold your deposit and manage much of the action that goes on during the escrow period.
Since this third party is extremely important to both you and the seller and both of you would pay fees to this company, it is significant to agree on which service to use. Therefore, your choice must be part of the offer. Since you do not buy a home every other week or so, you are perhaps unfamiliar with companies that give this service. Your agent would create a recommendation. You have the power to accept this commendation and include it in your offer, or make your own option.
Bear in mind that the seller would also have a preference and this might be a point of negotiation in a counter-offer. It has become usual that one side would decide the escrow/settlement agent and one side chooses the title insurance company. Even so, all in real estate is negotiable.
Title Insurance Company
Title insurance is significant because, by providing you with an Owners Policy, they insure that you have plain title to the property. If there are some problems later, you could always go back to the title insurance company and have them clear it up. Since it is usual for the seller to pay for the owner's policy, they have an interest in which company is used.
However, you are above to pay a fee to the title insurance company, too. This is for the Lender's Policy. The lender's policy insures your credit lender that there are no liens or judgments beside the property and that the mortgage would be in first position. In other words, you must sell the property or refinance it; their mortgage gets paid first, before any other claims against the property.
The lender's policy is less luxurious than the owner's policy.
Termite and Pest Inspection
As part of your offer, you may need a termite and pest inspection. This company not only inspects for termite spoil and pest infestations, but also inspects for dehydrated rot and water damage, among other things. The company that performs the examination is significant to you as a buyer; because you want to be certain they do a good job. It is significant to the seller because it is customary that they pay for the examination and some kinds of repairs that may be required.
You should decide which company you desire to perform this inspection and make it a part of your offer. Otherwise the seller would choose. If you do not know which company to hire, your agent would make a recommendation.
