Beyond Bending Tell You How
Real estate is one of the most lucrative and competitive industries in the world. With millions of properties being bought and sold every year, it’s crucial to understand the different aspects of real estate and the various terminologies used in the industry. One such term that’s commonly used in real estate is COE. COE stands for “Close of Escrow” and is an essential aspect of any real estate transaction. In this blog post, we’ll discuss everything you need to know about COE in real estate.
What is COE in Real Estate?
When you buy or sell a property, there are several steps involved in the process. One of the final steps in this process is known as the “Close of Escrow” or COE. COE is the date on which the final paperwork is signed, and the ownership of the property is officially transferred from the seller to the buyer. It’s the day when the buyer receives the keys to the property and takes possession of it.COE is an essential aspect of any real estate transaction as it marks the end of the buying and selling process. It’s the day when all the funds are transferred, and the property officially changes hands. The COE date is usually agreed upon by both the buyer and the seller, and it’s written into the purchase agreement.
Importance of COE in Real Estate
COE is crucial in real estate as it marks the end of the transaction and ensures that all parties involved have fulfilled their obligations. It’s the day when the buyer takes possession of the property, and the seller receives the proceeds from the sale. COE also ensures that all necessary paperwork, such as the deed and mortgage documents, are completed and signed.COE is also important for legal and financial purposes. It’s the date on which the buyer becomes the legal owner of the property and is responsible for paying property taxes, insurance, and other expenses. COE also marks the end of any financial obligations between the buyer and the seller, such as the payment of closing costs and real estate commissions.
Timeline of COE in Real Estate
COE is typically scheduled for 30 to 60 days after the acceptance of the purchase agreement. During this time, several tasks need to be completed before the COE date can be set. These tasks include:
Home Inspection
Before the COE date can be scheduled, the buyer should have a home inspection done to ensure that the property is in good condition. The buyer should hire a professional home inspector who will check the property for any issues such as faulty wiring, plumbing problems, or structural damage. If any issues are found, the buyer can ask the seller to fix them or negotiate a lower price.
Appraisal
The buyer’s lender will require an appraisal of the property to determine its value. An appraiser will visit the property and assess its condition, location, and other factors to determine its market value. The lender will use this appraisal to decide how much money to lend the buyer for the purchase.
Loan Approval
The buyer’s lender will also need to approve the buyer’s loan application before the COE date can be set. The lender will review the buyer’s credit history, income, and other factors to determine if the buyer is eligible for a loan. If the loan is approved, the lender will provide the buyer with a loan estimate, which outlines the terms and conditions of the loan.
Title Search
Before the COE date, a title search will be conducted to ensure that the property’s title is clear and free of any liens or encumbrances. A title company will perform the search and provide the buyer with a title report, which outlines any issues found. If there are any issues, the buyer and seller will need to resolve them before the COE date.
Closing Disclosure
The buyer will receive a Closing Disclosure from the lender before the COE date. This document outlines all the costs associated with the purchase, such as closing costs, taxes, and insurance. The buyer should review this document carefully and make sure that all the information is accurate.
Final Walkthrough
Before the COE date, the buyer should perform a final walkthrough of the property to ensure that it’s in the same condition as when the purchase agreement was signed. The buyer should check that all the agreed-upon repairs have been completed, and the property is clean and empty.
What Happens on the COE Date?
On the COE date, several tasks need to be completed before the property can officially change hands. These tasks include:
Final Payment
The buyer will need to make the final payment for the purchase, which includes the down payment, closing costs, and other fees. The buyer’s lender will transfer the funds to the seller’s account, and the title company will distribute the funds to pay off any outstanding mortgages or liens.
Signing the Deed
The seller will need to sign the deed, which transfers ownership of the property to the buyer. The deed will be recorded with the county clerk’s office, and the buyer will become the legal owner of the property.
Receiving the Keys
After the deed is signed and recorded, the seller will hand over the keys to the property to the buyer. The buyer can then take possession of the property and move in.
Closing Documents
The title company will provide the buyer and seller with copies of all the closing documents, including the deed, title report, and loan documents. These documents should be kept in a safe place as they are proof of ownership and can be used for tax purposes.
Conclusion
COE is an essential aspect of any real estate transaction. It marks the end of the buying and selling process and ensures that all parties involved have fulfilled their obligations. COE is also crucial for legal and financial purposes as it’s the date on which the buyer becomes the legal owner of the property and is responsible for paying property taxes, insurance, and other expenses. Understanding the timeline of COE and what happens on the COE date is crucial for anyone buying or selling a property.
