How to Guide: Real Estate Closings – Part I
For starters, the title company will need a legible, fully executed copy of the contract and all addendums. Also, don’t forget to send the title company the prior title policy and the survey, if no changes have been made. The listing agent should submit an info sheet with contact information for the buyer, seller, buyer’s agent, seller’s agent, mortgage loan originator (MLO) and the attorney for seller and/or buyer. The info sheet should contain the current mailing address, phone number(s), email address(es) of both the buyer and the seller. Verify the real estate commissions and or transaction fees, if any.
A seller and buyer should talk to the title company about issues that may affect the sale of the property. Some items that may affect the closing could be a death, a divorce, and or bankruptcy. A seller should talk to the title company about any judgments, law suits pending, wage garnishments, back child support and deficiency judgments that they are involved in. Discuss all these issues with the title company, the more they know, the less likely a problem will arise.
The title company will order a title search, which is a review of the county public records connected to the property and the owners of the property and then will issue a title commitment prior to closing. The title commitment will include a list of all items that are required to clear the title.
Both the seller’s agent and buyer’s agent should help the title company gather any and all documents from their principal to ensure a smooth and timely closing.
The title company will be concerned with the following dates on your contract; the effective date of the contract, dates that the first earnest money deposit is due, the second earnest money deposit and any other possible deposits that are needed or required and the close date. It is imperative that if any changes need to be made to any of these that they are in writing and given to the title company as soon as possible.
If the home being sold/purchased is occupied by tenants, the title company will need a copy of the lease in place. The title company will then need to get an estoppel letter from tenant. The estoppel letter includes information about the lease and the security deposit.
Look for part II next week.
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Posted on September 28, 2012, in Title and tagged addendum, Attorney, back child support, Buyer, buyer's agent, Clear Title, Closing, contract, county public records, Deficiency Judgment, Earnest Money Deposit, Estoppel, Fort Myers, Jennifer Ferri, Judgments, lawsuits, Lease, Listing Agent, mortgage loan originator, Property Guiding, Security Deposit, Seller, seller's agent, SWFL Real Estate, Tenant, Title Junction, Title Search, Title Work, wage garnishments. Bookmark the permalink. Leave a comment.