Inspections & Appraisals

The Process

Initial Agreement and Deposit

A purchase agreement is a legally binding arrangement between you and the seller. To keep the process clean and protected, keep the following in mind:

• Keep written records of everything, including verbal agreements, counter-offers, and addendums. We assist in drafting all written records and provide copies for every party involved.
• Keep up with the schedule. Both you and the seller will be working within a defined timeline to complete each stage of the closing process.

The Closing Agent

Once both parties have signed the contract, a title company or attorney will serve as the escrow or closing agent, and your deposit will be submitted. The escrow agent is a neutral third party responsible for holding and distributing all funds tied to the transaction until closing. They will conduct a complete title history review to ensure the property is free of encumbrances by the closing date and that any new encumbrances are accurately recorded. All contingencies in the Purchase Agreement must be satisfied before escrow can close and ownership can transfer.

How to Hold Title

There are several ways to hold title to a property, each carrying different implications for ownership transfer, financing, taxation, and estate planning. We strongly recommend consulting with a qualified attorney or tax advisor to determine the approach that best fits your situation. J2 Group LLC is happy to connect you with trusted professionals in our network who specialize in these areas.

As part of the contingencies in your Purchase Agreement, a licensed property inspector will be scheduled to evaluate the home within the agreed timeframe. Inspectors will assess the overall condition of the property and flag any areas of concern. You may also choose to bring in specialized inspectors for specific systems such as roofing or plumbing. For commercial acquisitions, the lender may require an environmental audit or soil test. If the inspection reveals material issues not reflected in the purchase price, you have the right to request a renegotiation of terms. Once you are satisfied with the findings and the agreed terms, the contingencies are removed and the process moves forward.

Appraisals and Lending

Stay in regular contact with your lender throughout the process so you are never caught off guard by new documentation requirements. If the Purchase Agreement is contingent on financing, the lender will order an independent appraisal to confirm the property's value. Appraisers assess value using a range of factors including building costs, square footage, income potential, and comparable sales. We recommend checking in with your lender at least two weeks before the scheduled closing to confirm everything is on track for timely loan approval.

Association Approval

Certain properties require approval from a homeowners or property association before the sale can close. If this applies to your purchase, request all association rules, regulations, and required documentation from the seller as early as possible. The Purchase Agreement will establish a timeline for submitting paperwork and completing any required meetings or interviews. Once approval is granted, your closing agent will secure the original approval letter so it can be properly recorded with the deed at the county level during closing.

Property Insurance

A standard property insurance policy protects against damages caused by fire, theft, and certain weather events such as wind or hail. While most states do not legally require coverage, most mortgage lenders do. Depending on your intended use of the property, you will need either a homeowners insurance policy if you plan to occupy the home, or a landlord insurance policy if the property will be used as an investment and leased to tenants.