Real Estate Educational Library After Accepting an Offer

After Accepting an Offer

Once an acceptable offer has been received and a purchase agreement is signed, several steps must be completed before ownership transfers to the buyer. At this stage, documentation, coordination, and preparation become the primary focus of the transaction.

Sellers begin gathering required legal and property documents while coordinating inspections, appraisals, and mortgage payoff information. Moving plans should also be finalized as closing approaches.

Common Documents Required

  • Mortgage, loan, and lien documentation
  • Property records, permits, and receipts for appraisal review
  • Property records requested by the title insurer
  • Insurance documentation
  • Required disclosure paperwork
  • Legal or estate-related ownership documents

Understanding Property Disclosures

Before closing, sellers are required to complete disclosure statements identifying known material facts about the property’s condition and history. Federal, state, and local laws govern disclosure requirements, and the homeowner must complete these forms personally.

Material facts generally include anything that could:

  • Lower the perceived value of the property
  • Influence a buyer’s decision to purchase
  • Change the price or terms offered by a buyer

If exact information is unknown, responses such as “Do Not Know” may be appropriate. However, known defects should always be disclosed. When disclosure requirements are unclear, consultation with a qualified real estate attorney may be helpful.

Michigan Transfer Tax

Transfer tax is typically paid at closing. The tax is calculated in $500 increments of property value. The State of Michigan charges $3.75 per increment and counties charge $0.75, forming the total obligation. Certain counties with populations under two million may qualify for a reduced county rate of $0.55.

Seller Duties During Escrow

  • Accept the buyer’s offer and initial good-faith deposit
  • Provide requested documents and information to escrow
  • Order inspections and approve required repairs
  • Review and sign escrow instructions and closing documents
  • Approve amendments or changes when necessary

Escrow Officer Responsibilities

  • Examine title and issue preliminary title reports
  • Determine documentation required to complete the transaction
  • Review signed documents and authorize recording
  • Record documents with the County Recorder’s office
  • Coordinate issuance of title insurance policies

Title Company Responsibilities

  • Order and review title searches and examinations
  • Act as neutral holder of documents and funds
  • Request payoff demands and lien information
  • Review lender requirements and insurance conditions
  • Prepare escrow instructions and settlement estimates
  • Coordinate signing and funding processes
  • Record required documents and finalize title insurance
  • Disburse funds and prepare final settlement statements

Once all documents are approved, funds are received, and recording is completed, escrow closes and ownership transfers to the buyer.

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