How are you paid when you sell a home?

[LittleMsMom]

I have never sold a home before so I am not sure how the process works.

I am currently getting the minor repairs done on my house so that I can list it to sell.

I have not meet with a RE Agent yet because there are repairs that need to be done and I don't want the agent thinking it is going to be a AS IS item when it is a newer home that just needs a little work (Cosmetic repairs).

My Husband and I are in the process of spliting our finances and we are selling the house (In both names). We put done 20% and we paid to have the basement finished, completed the landscaping on a new construction, also our area was not hit by the real estate bubble. So we should atleast walk away with the 20%.

Normally when you sell a house for a profit how does it work, do they cut multiple checks (to the mortgage company, then the difference to the seller whom pays the RE Agents their cuts).

The reason I ask is we are seperating our finances and I would like to cancel the joint checking account after we get our tax refund for 2009. If we do not have a joint account and sell a house that is a joint asset how is it done?

My husband has had major complants with trying to cash checks (if you don't have an account there but it is their check and more) these complants are for small amounts NOT thousands of dollars so I dont want any problems, but my husband is really bad with money and I want to cancel the joint account as soon as possible.

Any and all suggestion would be welcome, I searched the forums but did not address who houses are sold; but I could have not been searching the right words.

Thank you,

[terces]

Usually an escrow agent handles the transfer of money to the different entities involved. At least thats how we did it in CA.

Might want to try googling that for more info.

[creditcardfree]

You could call a title/escrow company to see what the proceedure would be in your situation. I would think they could cut two equal checks one made out to each of you. I'm sure this is common in the case of divorce.

When we sold, all our equity was sent by wire to the title company for our downpayment on our new home...so no check!

[MonkeyMama]

Usually an escrow agent handles the transfer of money to the different entities involved. At least thats how we did it in CA.

Might want to try googling that for more info.

Agreed. Other states use attorneys. After everything is figured/closed (RE agent fees, etc., etc.), they cut you a final check. If the homes is held joint they issue you one check payable to the both of you.

I can't imagine it would be that big of a deal to request 50% payable to him and 50% payable to you. (Though I couldn't say, for sure).

If it were me, I would close the joint checking account and talk to the RE agent and (more importantly) the escrow agent about all this. If there is no easy solution, open a joint account, deposit the check, distribute 50/50, close account. Problem solved.

ETA: Now that I think about it - I have had clients in various states divvy up the proceeds for various reasons. Shouldn't really be a big deal. Joint = 50/50, by law. So is reasonable.

[Ima saver]

WE have sold several houses. The lawyer handles the finances and issues checks to all parties involved. Since we only use cash to build, there are usually just two checks; one to us and one to the real estate agent. (unless we sold the house ourselves, which has happened several times)

[maat55]

There will be a title company of your choice handle the closing. You can find out from them the normal procedure for dividing equity and paying realitor costs.

You may find more information at BiggerPockets.com, it is an real estate forum in go to from time to time.

[jIM_Ohio]

First- I would contact a RE agent before doing remodeling... the agent may add things to the list which you did not think of.

Our RE agent did a walk thru, and gave us a list of what he wanted done before we listed the house. Some of list was painting, some was rearranging furniture, and some was general clean up and tidiness.

Second- if you are divorcing DH, keep the primary account open long enough to deposit the check, or ask for check to be payable to you, then you cut him a check for 50%.