How To Purchase A Home In The State Of California

by : Shane Smith

The first step for a purchaser who has decided to purchase a home in the State of California is to locate a realtor. A realtor who has a database which gives customized options in tune with the purchasers credit capabilities will give the purchaser the best home purchase choice.

When the purchasers locates the ideal home, an offer called the 'Purchase and Sale Agreement' is made to the seller. This agreement details the time frames of each stage of the purchase,, inspection requirements under the laws of the State of California, price and the loan amount to be raised. The offer should be accompanied by a check in favor of the realtor which will be held till the seller accepts the offer. Under the laws of the State of California the seller is required to give a 'Real Estate Transfer Disclosure Statement' detailing any landscape or structural defects in the property and the operating condition of other items in the property and any possible environmental hazards. Any death that has taken place in the property in particular death by murder should be disclosed. An earthquake readiness disclosure form should also be filled out by the seller detailing the earthquake resistance of the building. When the parties to the transaction sign the agreement the terms become binding on them.

The purchaser should then hire an approved inspector to inspect all aspects of the building like structural defects, pest control and other inspections required by the laws of the State of California.

The purchaser should hire an attorney or a real estate title company or a title and trust company to investigate the title of the property from court and public records. A list of title search professionals is available with the American Land Title Association. The title search will reveal implied easements by necessity or benefit which are recognized by the laws of the State of California. Liens on the property caused by unpaid sums under judgments, mortgages, unpaid child support, unpaid taxes or municipal revenues are also possible encumbrances that could affect the title of a property. The purchaser should buy a title insurance to protect the purchase from any litigation arising out of possible title claims undetected by the search in local records.

Once the purchaser obtains a certification of clear title the lender will gather the necessary documents and give a written loan approval. A mortgage insurance is taken by the lender to further secure the loan if the purchaser can pay less than 20% of the equity. The Mortgage insurance is cancelled if the purchaser is able to pay off 80% of the equity.

The final contract is closed when the price is paid to the seller and the contract of purchase signed by the parties to the transaction. The purchaser is required to bring a proof of identity, a home owners insurance with proof of payment of a one year premium and any other document required by the lender or their attorneys.. The purchaser is given possession of the home purchased in the State of California. 3 days after the closure of the contract