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Contracts

Contracts come in many shapes and sizes. When you are selling a property there are many types of contracts you will run across. Some will come in the form or a purchase agreement or sales agreement. Others may be option agreements or lease agreements.

Selling real property requires the use of a contract since it’s considered something of substantial value. This applies even if you don’t sell a property for a lot of money.

What Does A Title Company Do In Real Estate?

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Title Company

This post was last updated on July 12th, 2021 at 08:23 pm

Selling your house fast is easier with a good Title Company. But what exactly do they do? What do they contribute to the overall process? And why do you need one?

Let’s take a look at all the things a Title Company can do for you. You may be surprised at just how much they do to be sure your transaction goes smooth!

What Is A Title Company?

A Title Company is a company that handles real estate transactions. They are the professional team that takes a Purchase Agreement and turns it into a transaction!

It’s usually a small businesses which is privately owned. You will find some have several branches. Others may have a single office.  More importantly it would be impossible to sell a house without them.

What Is The Title Company’s Job?

The first step in selling your house is making a deal. But what happens after that? This is where the Title Company takes over.

Once the Purchase Agreement has been signed the Title Company gets to work. They start by creating a file containing the information of the buyer, seller and lender. They will put a copy of the Purchase Agreement into the file to be used later.

Abstracting

The first thing will be to order the Abstract of Title. Once it has been ordered it will be updated and certified. After this a Title Examiner will go through the Abstract. They review the documents and conduct a Title Search to be sure the seller has marketable title.

They will also be looking to see what may need to be taken care of at Closing. Things like mortgages, liens and back taxes will need to be paid at Closing. A list of things needed to complete a Closing is created. After all of these things are reviewed the Title Examiner will issue a Title Commitment.

Coordination

Title Companies have a large staff. Different people do different jobs. One of the main jobs is coordinating. The Title Company needs to be sure everything comes together nicely. That means making sure liens are paid off. Getting paperwork to banks and lenders on time.

There are also documents that need to be made prior to closing. Deeds and Closing Statements need to be created. Numbers need to be double checked. All of this takes a lot of time and effort. Title Company employees work hard to coordinate Closings.

Escrow Services

Title Company’s also provide escrow services. They hold all of the funds.

After Closing they send the funds were they need to go. They will send money to pay off existing mortgages and liens. This is done to be sure that everything that needs to be paid gets paid.

The buyers and sellers don’t actually touch the money. Everything else gets paid first. After those payments are made the sellers are sent any money that they are due. Usually this is done with either a check or a wire transfer.

Closing Services

When everything is properly prepared a Closing will be arranged. At Closing the buyers and sellers meet with a Settlement Agent. The Settlement Agent will explain the paperwork and gather the required signatures.

They will show you exactly what money is going where. They will also answer any last minute questions you may have. Once the Closing is complete the Title Company will make sure that all of the documents get properly filed.

How Do You Pick A Good Title Company?

You want to be sure the Title Company you work with will help you. First look at online reviews. Then referrals from friends and family.

Not all Title Company’s are equal. Be sure you work with one that will meet your needs. Don’t be afraid to ask questions and get to know the staff! If they have a great reputation and great customer service you’re on the right track.

181-Close-Now buys a lot of houses! We have worked with many different Title Companies. Here are just a few that we can highly recommend!

Trustmark Title

Lincoln Title

Photo courtesy of Old Republic Title Company

Does 181-Close-Now Work With Title Company’s?

Selling your house fast is easy with 181-Close-Now. We work closely with the Title Company to make sure things get done FAST! Our Closing Options Analysts go above and beyond to get your file to the front of the line. This means we are able to close faster than other homebuyers!

Be careful! A reputable homebuyer will ALWAYS have a proper Closing. If someone tries to buy your house without doing title work or having a Closing something is wrong. Title work protects the sellers as well as the buyers. 181-Close-Now will NEVER ask you to sell a house without a formal Closing and proper title work.

Sell Your House Fast With 181-Close-Now

See just how fast and easy selling your house can be. Just give us a call at 181-Close-Now or fill out our Sell My House Fast Contact Form. One of our Closing Options Analysts will help you every step of the way. You can also fill out the form below. Your privacy is always protected and there is no obligation.

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    When you sell your house to 181-Close-Now you are working with the most experienced home buying team in Oklahoma. We’ve been featured on NBC News, Fox, The CW, ABC News and many more! Our team has the experience to make selling your house fast for cash as-is easy and stress free!

    Get In Touch With Us

    Even if you aren’t ready to sell your house you can still get in touch. Questions or concerns? Our team is here to help! You can use our Contact Us page, call us at 1(812)567-3669 or email Support@181closenow.com Or just send us a quick message:

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      What Is A Purchase Agreement In Real Estate?

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      Purchase Agreement

      This post was last updated on July 12th, 2021 at 08:23 pm

      When we buy houses we usually use a Purchase Agreement. You can call it a Sales Agreement or Contract. It all refers to the same thing. A Purchase Agreement is a written agreement between a buyer and seller. It outlines all of the terms and conditions of the transaction. You don’t have to spend money on a fancy document. Any document outlining the important details will do.

      Some people try and buy or sell a house on a handshake. This is a very bad idea. If everyone is being honest there is no reason to NOT have a written Agreement. Even if you trust the other person you will still need a written Agreement.

      More importantly? Without a written agreement the Title Company won’t do anything. No Title Work means no Closing. That makes a Purchase Agreement very important!

      Do You Have To Have A Purchase Agreement To Sell A House?

      When you are buying or selling a house you should ALWAYS have a Purchase Agreement.

      • It will allow a Title Company to start Title Work
      • A Purchase Agreement clearly outlines everyone’s responsibilities
      • Real Estate is considered something of substantial value

      Title Company’s Need A Purchase Agreement

      A Title Company will not start Title Work until a Purchase Agreement has been provided. It let’s the Title Company know that a buyer and seller are working to complete a transaction.

      They know that if they start the labor-intensive process of Title Work they are probably going to get paid. It lists when the Closing can happen. This gives the Title Company assurance that they aren’t doing a lot of work for no reason.

      The Title company also uses the Purchase Agreement to prepare closing documents. They look at the Purchase Agreement to know all of the details that have been agreed to. This is one of the most important reasons to never do a handshake transaction.

      The Title Company needs a written Purchase Agreement to work from. It provides them with information about price. They can also use it to meet deadlines. The Purchase Agreement tells the Title Company who get’s what and who pay’s for what.

      A Purchase Agreement Clearly Outlines Everyone’s Responsibilities

      A Purchase Agreement outlines everyone’s responsibilities. It should state the buyer, seller, purchase price, earnest money and the address of the house. Closing dates and inspection periods are also common.

      By having the details of the transaction outlined it’s less likely disputes will arise. There are people who simply will not honor an agreement. Luckily most people will.

      By having a Purchase Agreement you have a document you can reference if any disagreements arises. Be sure and keep a copy for your files. You may need it later if there is a disagreement.

      Real Estate Is Considered Something Of Substantial Value

      There are a lot of things in life you don’t need a Purchase Agreement for. If you’re trying to buy or sell a house quickly a Purchase Agreement is literally required.

      One of the central tenants of Contract Law is that a written agreement should be used on any transaction of substantial value. Written agreements are also required in any transaction that will take more than a year to complete.

      Houses are considered to have substantial value. When you are selling a house you are dealing with a legal transaction. Everyone needs to be able to agree on inspection periods, who will pay for different costs and other issues. A written agreement also helps avoid disagreements later on.

      The actual value of the house doesn’t matter. Sometimes houses aren’t worth a lot. There are houses that need a lot of repairs. Others are in bad areas. Even if you aren’t dealing with a large amount of money you are still dealing with a piece of Real Property.

      Don’t take our word for it. Look what the legal experts have to say about having to have a written agreement when dealing with real estate.

      Purchase Agreement’s Are Important When You Want To Sell A House Fast

      It’s important to remember that a Purchase Agreement is a legally binding contract. It’s always wise to read it carefully before signing. Be sure that you understand exactly what you are signing. You want to double check that the purchase price, inspection dates and other information is correct.

      Purchase Agreements do not have to be complicated. They can be a simple one or two page document. If you sell your house to 181-Close-Now you can rest easy knowing we will go over the Purchase Agreement with you.

      Our Closing Options Analysts are trained to review the Purchase Agreement with out clients. We want to be sure everyone’s on the same page. This is one of the reasons out clients love us!

      Ready To Sell your House Fast?

      If you’re ready to sell your house fast we would like to make you an offer. We make selling a home simple. Just fill out our Sell My House Fast Contact Form or fill out the form below and we will make you an all cash offer. We buy houses as-is with no repairs needed, your privacy is always protected and there is no obligation.

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        181CloseNow As Featured On NBC Fox CW ABC News We Buy Houses For Cash As-Is Fast

        When you sell your house to 181-Close-Now you are working with the most experienced home buying team in Oklahoma. We’ve been featured on NBC News, Fox, The CW, ABC News and many more! Our team has the experience to make selling your house fast for cash as-is easy and stress free!

        Get In Touch With us

        Even if you aren’t ready to sell your house you can still get in touch. Questions or concerns? Our team is here to help! You can use our Contact Us page, call us at 1(812)567-3669 or email Support@181closenow.com Or just send us a quick message:

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          What Is An Option Agreement In Real Estate?

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          Option Agreement

          This post was last updated on July 12th, 2021 at 08:23 pm

          In real estate an Option Agreement is a type of Purchase Agreement. An Option Agreement gives a potential buyer the right, but not the obligation, to purchase a house.

          The Option Agreement says the buyer can buy a house for a certain amount of time, at a certain price and on certain terms. This is very similar to other Options Agreements such as Stock Options. A key feature of an Option Agreement is that a buyer CAN buy a house. But they don’t HAVE to buy the house.

          What Does An Option Agreement Contain?

          A well written option agreement will contain at the minimum:

          • An expiration date
          • A Purchase Price
          • The Premium paid for the Option
          • Description of the Asset or Property

          Expiration Date Of An Option

          A good Option Agreement should clearly state the date the Option expires. The expiration date of the Option is the date by which the buyer has to notify the seller whether or not they plan to execute, or use, the Option.

          The transaction does not have to be completed by the expiration date. The expiration date is simply the date by which the buyer must notify the seller of their intent to move forward. If the expiration date passes without Execution the option is no good. This is called Option Expiration.

          Using Option Agreements Can Be Dangerous

          I recently saw an Option Agreement that had no expiration date! A friend of mine purchased it. He now has the right to buy a certain house at a certain price anytime he chooses!

          The option has no expiration date. By failing to put an expiration date the seller gave him an option that may never end. This is one very important reason to be sure that an Option Agreement has a clear expiration date!

          Purchase Or Strike Price Of An Option

          When we talk about Options Agreements the proper term for purchase price is the Strike Price. The price which the house can be purchased. It’s the same thing.

          The purchase price, like other aspects of an Option Agreement, are negotiated between the buyer and seller. This is the price that the buyer must pay to be able to buy the house.

          If the buyer is not willing to pay the purchase price then the Option Agreement is not likely to get executed. Setting a Strike Price too high can make it very hard to sell an Option Agreement. Few buyers are willing to buy an Option they know they can’t execute.

          What Is An Option Premium

          When using Options a Premium is the amount that the buyer pays the seller for the rights they are receiving. The seller gets to keep this Premium even if the Option doesn’t get exercised or expires.

          The seller is giving the buyer rights to buy the property at a certain price for a certain amount of time. The Premium is what the seller receives for doing this. There is no set Premium that an Option Agreement must have.

          It can be as little as a few dollars or as much as several million! The Premium, like most aspects of an Option, is negotiated between the buyer and seller.

          What Type Of Property Description Does An Option Contain

          An Option Agreement can contain any type of property description that the buyer and seller are comfortable with. It can be something as simple as the address to a house. Sometimes it can be a complicated legal description for a property. It depends on the type, size and value of the property.

          As long as the description can accurately describe the property (and makes both the buyer and seller feel comfortable) the property description can be written any way you like.

          What Are Option Agreements Used For

          Now we know a little about what a basic Option Agreement contains. Next lets look at what they can be used for.

          Basic Option Agreement Example

          Let’s say Sam has 20 acres of undeveloped land by the highway. Tom thinks that the area by the highway will soon be used for commercial development. Sam will sell the property for $500,000. Tom thinks the property is worth about $200,000.

          Tom and Sam agree to use an Option Agreement. Sam is willing to sell the property to Tom for $500,000 any time in the next 2 years. They agree that Tom will pay Sam a $5,000 premium for the Option. Sam gets to keep the $5,000 premium even if Tom doesn’t end up executing the option.

          About 6 months later the area by the highway starts being developed for commercial use and starts selling for over $100,000 per acre. Tom tells Sam he would like to execute the Option and they move forward with the transaction. Tom would then pay Sam $500,000 for the 20 acres.

          This is a bit of an extreme example but it shows why an Option Agreement can be a good idea in certain situations. If Tom had been wrong and the land had not suddenly gone up in value he could have just let the Option expire in which case he would have only been out the premium he paid.

          What Is The Most Common Real Estate Option

          Options are not uncommon in real estate. We see them most when we look at Lease Options. Lease Options combined a residential lease with a purchase Option Agreement.

          It’s often said that 99% of Options expire and become worthless. While some sources say that the number is much lower they usually only look at Stock Options. Most Options, especially those that are part of a Lease Option, do indeed expire and become worthless.

          Should I Use An Option Agreement To Buy Or Sell A House?

          Option Agreements can be very powerful. They can also be very dangerous. Most people simply don’t understand Option Agreements. You should never use a tool you don’t know how to use.

          I’ve seen a lot of landlords and tenants both have issues with Option Agreements. Landlords want to make more money but end up with legal issues. This is normally because they don’t understand what they are offering their tenants.

          Sometimes it’s the tenant that loses out. I’ve met many tenants who thought they were getting more than they understood. They spend a lot of money for an Option Agreement that was never going to be executable.

          Does 181-Close-Now Use Option Agreements?

          The job of a Closing Options Analyst for 181-Close-Now is to find a closing solution that fits your need. 181-Close-Now prefers to use a Purchase Agreement. But if it helps a client we will consider using an Option Agreement in certain circumstances.

          We have a rule when using an Option Agreement. Our Closing Options Analyst will go over the agreement with you in detail. We make absolutely sure that out clients understand what an Option Agreement is. You’ll know what it is and why it best fits your situation!

          Unlike other companies that buy houses in Oklahoma 181-Close-Now always keeps you informed! See the 181-Close-Now difference for yourself.

          Ready To Sell Your House Fast?

          If you’re ready to sell your house fast we’re here to help. Just fill out our Sell My House Fast Contact Form to or give us a call at 181-Close-Now and we will make you a cash offer.

          We buy houses as-is so you never have to make repairs. Just fill out the form below and one of our Closing Options Analysts will call you to speak about your unique situation. Your privacy is always protected and there is no obligation.

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            What Our Clients Have To Say

            181-Close-Now makes selling your house fast and easy. Don’ t take our word for it. Check out our Client Testimonials. Here’s what one of our past clients had to say about their experience selling a house to 181-Close-Now:

            Sell My House Fast Oklahoma City Client Review

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            When you sell your house to 181-Close-Now you are working with the most experienced home buying team in Oklahoma. We’ve been featured on NBC News, Fox, The CW, ABC News and many more! Our team has the experience to make selling your house fast for cash as-is easy and stress free!

            Get In Touch

            Even if you aren’t ready to sell your house you can still get in touch. Questions or concerns? Our team is here to help! You can use our Contact Us page, call us at 1(812)567-3669 or email Support@181closenow.com Or just send us a quick message:

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              What Is A Closing When Selling A House?

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              Closing

              This post was last updated on July 12th, 2021 at 08:23 pm

              If you want to sell a house fast you will need a Closing. This is when the magic happens. The last step in a selling your house. This is when everything gets taken care of.

              The paperwork gets finalized. Sellers get their money. Buyers get their keys. You are closing, or completing, the transaction! Sometimes it may also called Settlement. This is the time when the last details are taken care of and the sale is finalized. It’s the moment everyone’s been waiting for!

              What Happens At Closing?

              First everyone shows up at the agreed date and time. Usually at the Title Company. Next everyone will provide a copy of their identification. Then the Settlement Agent will make copy’s of everyone’s I.D.’s.

              Typical Closing Documents will:

              • Deed’s: The Deed is what actually transfers ownership of the property. The Settlement Agent will usually have several copies in case it gets signed incorrectly.
              • Settlement Statements: The Settlement Statements are prepared for both parties. This document gives a breakdown of the expenses related to the transaction.
              • Disclosures: The Settlement Agent will have Disclosures that must be signed. There may be several different disclosures.
              • Financing Documents: If a buyer is borrowing money the Settlement Agent will have documents for the loan.
              • Other Documents: The Settlement Agent will have any other documents that may be needed. This could include survey’s, insurance documents or releases.

              What Is A Typical Closing Like?

              Once all of the I.D.’s are copied and the documents prepared the Closing can get underway!

              First the Settlement Agent will start by explaining the documents. They will go over each document one at a time. This way you understand what you’re signing. They will also be sure you sign or initial in the correct places.

              After the documents are signed the Settlement Agent will Notarize the documents. These official copies are usually sent to the County. Everyone involved will usually be given copies of the documents.

              After the document are signed the seller gives the keys to the buyer. At this point the Closing is actually complete! Everyone can breath easy. Your house is officially SOLD! Now the house has a new owner!

              Does Anything Happen After Closing?

              When the Closing is completed the transaction is considered finished. Everything else is the Settlement Agents responsibility. The Settlement Agent will make copies of all the documents. Next they will make sure that the Deed is properly recorded.

              The Settlement Agent will make sure that the funds get disbursed. Funds are usually distributed by check from the Title Company. The Title Company may wire funds directly instead of issuing checks.

              How Long Will Closing Take?

              How long a Closing takes will depend on the specifics of your transaction. If you the buyer is borrowing money a Closing can take several hours. I’ve been in Closings that took all day! Closing day is supposed to be the best part of selling a house. Not something that takes hours to get over with.

              Why Is Closing Different When Selling A House Fast With 181-Close-Now?

              The 181-Close-Now team always makes Closing as easy as possible. Our average Closing takes less than 10 minutes! We make sure everything is ready before you arrive. Usually it’s just a few signatures and everything is finalized. Our clients tell us it’s the fastest way to sell a house they’ve ever heard of.

              How Can 181-Close-Now Close So Fast?

              181-Close-Now buys houses as-is. That means there’s no inspections or repairs to deal with. It also makes the Closing process much faster.

              Remember 181-Close-Now pays cash for houses. By paying cash we make the Closing process super fast! Since we don’t borrow money to make each purchase there’s less paperwork at Closing. This helps speed the Closing process up even more.

              Our Closing Options Analysts work closely with our Title Companies. This means we are able to do a lot of the work before you get to Closing. Our clients tell us we have the FASTEST Closings in Oklahoma!

              A Closing that involves appraisals, surveys and inspections can take substantially longer. The average Closing takes about 45 minutes to an hour. If you have a good Settlement Agent your closing should go smoothly.

              Ready To Sell Your House And Close Fast?

              Selling a house and want to Close fast? We’d like to make you a cash offer. You can give us a call at 181-Close-Now or fill out our Sell My House Fast Contact Form. Your privacy is always protected and there is no obligation.

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                Have questions, concerns or want to speak with our staff? Just fill out the form below and your message will go directly to one of our Closing Options Analysts. Even if you’re not ready to sell we’re here to help.

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                  As Featured On

                  181CloseNow We Buy Houses For Cash As-Is Fast
                  181CloseNow As Featured On NBC Fox CW ABC News We Buy Houses For Cash As-Is Fast

                  When you sell your house to 181-Close-Now you are working with the most experienced home buying team in Oklahoma. We’ve been featured on NBC News, Fox, The CW, ABC News and many more! Our team has the experience to make selling your house fast for cash as-is easy and stress free!