Inspections & Appraisals

The Process

Initial Agreement and Deposit

Once a purchase agreement is in place, it becomes a legally binding arrangement between you and the seller. A few things to stay on top of during this phase:

• Keep written records of everything, including verbal agreements, counter-offers, and addendums. We assist with drafting all written documentation and provide copies for each party.
• Stick to the agreed timeline. Both parties will be held to a schedule at each stage of the closing process.

The Closing Agent

After both parties sign the contract, a title company or attorney steps in as the escrow or closing agent. Your deposit goes into escrow at this point. The closing agent is a neutral third party responsible for holding all transaction funds, researching the property's full title history, and ensuring the title is clear of encumbrances at closing. Before escrow closes and ownership transfers, every contingency in the purchase agreement must be satisfied.

How to Hold Title

There are several ways to hold title to a property, and each carries different implications for ownership transfer, financing, and taxation. We strongly recommend speaking with a real estate attorney or tax advisor before deciding. We are happy to connect you with trusted professionals in the Southern Utah area who can help you make the right call.

As part of the contingencies in the purchase agreement, you will schedule a licensed inspector to evaluate the property within the agreed timeframe. Inspectors assess overall condition and flag any concerns. You may also choose to bring in specialists for specific systems like roofing or plumbing. If you are purchasing a commercial property, an environmental audit or soil test may be required by your lender. If inspections reveal issues not addressed in the purchase agreement, you have the right to request a renegotiation of terms. Once you are satisfied with the findings and the terms hold, contingencies are removed.

Appraisals and Lending

Stay in close contact with your lender throughout this phase. If the purchase agreement is contingent on financing, your lender will order an independent appraisal to confirm the property's value. Appraisers evaluate a range of factors including building costs, square footage, and operating income. Check in with your lender at least two weeks before closing to confirm the loan remains on track and will be approved on time.

Association Approval

If the property is governed by an association, approval may be required before the purchase can close. Request all rules, regulations, and required documents from the seller early in the process. The purchase agreement will establish a timeline for submitting paperwork and completing any required meetings or interviews. Once approved, your closing agent will obtain the original approval letter so it can be recorded with the deed at closing.

Property Insurance

Standard property insurance protects against fire, theft, and certain weather events. While most states do not legally require coverage, virtually all mortgage lenders do. If you plan to live in the property, you will need homeowners insurance. If you intend to rent it out as an investment, landlord insurance is the appropriate coverage. We can point you toward trusted local providers who understand Southern Utah properties.