Purchasing a Home in San Diego County California

The following is an Overview of customary practices. It includes important highlights but is in no way intended to represent all the details that could take place. Likewise, it is not intended as Legal Advice which can only be provided by a practicing Attorney. A comprehensive Home Purchase Process Flowchart is available upon request.

Selecting a knowledgeable agent should take place at the beginning of your search process. Early selection provides time to learn about the process, the documents required, and obtaining Financial Pre-approvals. All of these items will allow you to narrow your search, saving time and confusion. Since so much information is provided on the Internet your primary concern should be the agent’s Negotiating Strength and focus on balancing your Financial and Lifestyle results.

There is usually one agent representing the Buyer/s and a second agent representing the Seller/s. Real Estate Agents are licensed by the California Bureau of Real Estate and accountable for their actions to retain their license. Agents work under the supervision of a Broker who is also responsible for their actions. Most Brokers require their agents to provide Liability Insurance protection for Errors and Omissions.

The process of Making an Offer (Buyer to Seller) and Offer Acceptance as written, or Making a Counter Offer (Seller to Buyer) follows the rules of Contract Law. There can be multiple Counter Offers back and forth until an agreement, or impasse is reached. If an agreement is reached, an Escrow is opened to process all the documents needed to meet the terms and conditions. This process normally takes from 45-60 days. The Escrow Company acts as an agent representing both the Buyer and Seller independently. Their job is to make sure that everything in the final Sale Agreement/s are complied with. They can only make modifications if both the Buyer/s and Seller/s agree to do so in writing. At the Close of Escrow, Title and Possession transfer to the Buyer/s and important documents are Recorded in the County.

The documents used in a purchase are standardized by the California Association of Realtors (CAR) which is a professional organization operating under the guidelines of the National Association of Realtors (NAR). The CAR Residential Purchase Agreement (RPA) covers many topics (some of which are not applicable to every transaction) that are designed to set the Terms and Conditions of the offer, and create awareness of things to consider when preparing the offer. It provides the Buyer/s an opportunity to make their offers Contingent upon certain events and/or favorable discoveries. Key items of note include the right to have a Home Inspection completed by an independent inspector of Buyer/s choice. Likewise, Loan Approvals and Review of Mandatory Disclosures can also create the ability to cancel or re-negotiate the agreement without penalty.

It also establishes Who Pays for What Services that are customary in the sale of a home. There are Escrow and Title Insurance fees, Pest Inspections, Home Warranty Policies, etc. Most important to note is that the CAR documents are designed to clarify the agreement and protect the Buyer/s with a clear representation of what they are agreeing to. They are a constant work-in-progress and evolve over time. It is highly recommended that Buyers take the time needed to gain an understanding of, and be comfortable with these documents long before they are ready to make an offer. You do not want to be under pressure to sign these documents without prior knowledge.

We hope this information has provided a reasonable introduction for further discussions with your agent. Although the process seems very complicated, you should know that the Escrow Officer and Staff, plus myself and my Transaction Coordinator are dedicated to making sure that all the necessary documents are processed by the Buyer/s and Seller/s on a timely basis.

We can send you a typical flowchart of the Home Buying Process which is a realistic diagram of all the events and document flows. If you have any questions we are always here to help you learn more, and there is never any obligation for assistance. Please give us call at your convenience!

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Or Email your questions   rickjohnson195@gmail.com

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