Answers to Frequently Asked Questions

Many home sellers seem to wonder about the same thing, so to help you out, we�ve compiled a list of frequently asked questions sure to assist you in selling your home.

What is title insurance? Title insurance gives the named insured protection against loss due to:

defects liens encumbrances adverse claims other matters not revealed or disclosed to the new owner that attach prior to the date of policy

What is a wood-destroying organism inspection report? A wood-destroying organism inspection report is an opinion written by a qualified, licensed state structural pest control inspector. The report is based upon what was observable and apparent at the time he or she conducted the inspection of the home or property.

Note that the inspection report does not and cannot guarantee the home or property to be clear of wood-destroying organisms or the damage they can cause, nor does it guarantee that the total damage or infestation is restricted to that described in the report.

Wood-destroying organisms include:

subterranean termites dampwood termites carpenter ants wood boring beetles wood decay fungus

What are the hazards of lead-based paint? A pamphlet, made available to you upon request from your real estate agent, can outline them for you. Law requires all buyers and sellers to obtain and read this pamphlet. It describes the hazards of lead-based paint for homes built before 1978.

What are closing costs? Closing costs are the total amount of charges paid to different entities involved in the process of buying and selling real estate. For sellers, closing costs are usually about 9.5-10% of the total sales price of a property.

The closing costs you might encounter can include:

discount points escrow fee documentation fee homeowners association fees pest/rot inspection real estate commission title insurance premium

What is the difference between "pre-qualified" and "pre-approved"? "Pre-qualified" means that a loan officer has determined the price the buyer can afford based on the down payment, debts and the amount that will be approved for the mortgage; in other words, has done a check of probable credit.

"Pre-approved" means that the lender has approved the buyer's credit, employment and funds.

What should a home inspection include? Every home inspection should include a checkup of the following:

· Foundations

· Roof

· Heating and air conditioning systems

· Ventilation

· Common areas (for condominiums)

· Septic tanks, wells or sewer lines*

· Insulation

· Plumbing and electrical systems

· Ceiling, walls and floors

· Doors

· Hazardous materials concerns

Note that hazardous materials checkups sometimes cost extra, but are obviously worth the extra money.

What property details are usually included by Listing Services? Usually, the following details will accompany the property listing:

Location Photograph Price Utilities Amenities Annual property tax Current financing (when assumable) Listing company

What pages are generally included in the Purchase and Sales Agreement?

Within the Purchase and Sales Agreement, you'll find pages detailing the following:

Agency Disclosure Financing Addendum/Clause Earnest Money Receipt Inspection/Clause Conditions/Disclosures Addendum Contingency Addendum Outlining Special Conditions Lead-Base Paint Notification Property Disclosure Form (completed by Sellers)

What is the difference between a REALTOR® & Real Estate Agent? The term REALTOR® refers to real estate professionals who are members of the National Association of REALTORS®, an organization requiring members to abide to a firm Code of Ethics. Not all real estate agents are REALTOR®s. As well, not all REALTOR®s are real estate agents. The organization also includes appraisers, property managers and individuals involved in other areas of the real estate business.