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1. How long have you been working in the industry? Look for a credible track record and successful work experience.

2. Are you licensed, insured and bonded? Ensure your contractor is licensed and carries workers’ comp and liability insurance. Although bonding isn’t a universal requirement, it could protect you if a job isn’t completed.

3. Do you guarantee your work in writing? While a verbal guarantee is nice, draft a written guarantee stating exactly what’s covered to ensure the contractor will have to stand behind the work.

4. Can you provide references? Ratings and reviews are great, but beware contractors who won’t offer customer references.

5. Do you pull all the required permits? Failing to pull the required permits can cost you big time. If your contractor is hesitant to get the necessary paperwork, find a new one.

6. Who will be managing the project? If your contractor isn’t in charge of your job, insist on meeting the project manager to ensure he or she
measures up to your standards.

7. What’s the project timeline and daily work schedule? Construction scheduling is never perfect—workers get sick, orders get delayed and weather causes interruptions. But an organized contractor will provide you with a work schedule that clearly outlines a start and end date.

8. Will you need bathroom facilities? Unless your job is a major remodel that necessitates bringing in a portable bathroom, there’s a good chance workers will need to use your facilities. Dedicate a bathroom to workers before you start the project.

9. Will you need my garage code or keys, and who will have access? Many homeowners feel uncomfortable handing over the keys to their home. Unless you plan on staying home during the construction, you’ll likely need to give a contractor access to your house. Knowing who has the keys will give you better peace of mind.

10. Will you sign a contract? All worthwhile contractors will write out a clear contract that defines the work to be performed, as well as the material, costs and completion timeframes of the project. The agreement should also include a termination clause that spells out the circumstances in which both parties can terminate the contract.

Source: HomeAdvisor

After a buyer has agreed to purchase a home from a seller, the escrow process begins. This is designed to make sure that all the necessary conditions and obligations are met so the transaction can proceed smoothly.

Purpose of Escrow
Escrow is designed to protect all the parties involved in a real estate transaction from risk and to ensure that everyone is acting in good faith. The seller will need to prove that he or she owns the house and that it’s not subject to any liens from third parties that could prevent or complicate the sale. The buyer will need to prove that he or she has the funds necessary to buy the house or the financial means to obtain a mortgage.

What Happens During the Escrow Process
Escrow is generally a mandatory part of a real estate transaction that starts after the seller accepts the buyer’s offer to purchase the house. The law related to the escrow process varies by state, but in general an escrow agent, who is a neutral third party with no vested interest in the transaction, is assigned to handle the process and to protect each involved party from risk. The escrow agent is paid a fee that represents a small percentage of the sale price. This fee can be paid by the buyer, the seller or both.

Earnest money is a small percentage of the sale price that the buyer provides to demonstrate that he or she is serious about buying the house. In exchange, the seller takes the house off the market. After the sale is completed, the earnest money is applied to the buyer’s down payment. Until the sale is finalized, the earnest money and the house are both considered to be in escrow.

The escrow agent collects the sales contract, earnest money and contingencies related to insurance, inspections, repairs and any other requirements that must be met to finalize the sale. These items are placed in an account and stay there until the buyer and seller have fulfilled all their duties required by the terms of the contract.

Once all parties have met their obligations and all the necessary documents have been signed, the mortgage lender pays the money due to the seller. Then the deed is recorded in the name of the new owner, escrow closes and the buyer can move into the house.

Understand How Escrow Works
The escrow process is designed to protect both the buyer and the seller in a real estate transaction. It allows each party to be confident that the other is acting in good faith and meeting the requirements set forth in the contract. Escrow also allows each party that is due payment to receive the appropriate amount in a timely manner. If you have any questions about the escrow process as it relates to your specific situation, talk to your real estate agent.