How to Guide: Real Estate Closings – Part III
Who would have believed there was so much to do or remember??
If there is a power of attorney for either party, the buyer or seller, notify the title company as soon as possible. They need to review the power of attorney for accuracy and durability.
In regards to the policy(s) being issued; usually the seller pays for the owners title policy for the buyer. A seller insures there’s a clear title. A clear title means that no party other than the buyer and the buyer’s bank (if a loan is involved) have any claim to the property. Sometimes a buyer’s agent may recommend that a buyer agree to pay for the owner’s title insurance policy. A buyer who writes an offer and agrees to pay for the owner’s title insurance may have an edge over a standard offer that is the same price. Basically, it will mean a more attractive offer. Also, a bonus for the buyer in doing this, is that it allows the buyer and/or the buyer’s agent to choose where the closing takes place.
Prior to closing, the title company will order any items that may need to be updated, confirm that the seller’s documents are prepared, and confirm that all of the pertinent documents that are required to clear title are in the file. They will order an updated title search and confirm that there are no new items that may have come of record, review the survey, confirm buyer’s insurance is approved by the lender and also confirm that the lender’s mortgage package is ready. Then they will confirm that the HUD1 has been approved by the real estate agents and lender.
The title company will email or overnight the buyers or seller closing package if needed. If you are in town, a closing time will be set for you. Whether you are the buyer or seller you MAY need to come to closing with money. The title company will advise you and send you wire transfer instructions. The funds may need to be wired a few days PRIOR to closing (depending on where you are). Do NOT wait last minute. The closing could be delayed due to just this one thing! Remember personal checks and/or cash is never accepted at a closing.
If coming to the closing table or as a mail away, the buyer and seller should bring 1 form of identification to the closing, like a driver’s license or a passport. A closing can also take place anywhere – at the title company, a real estate office, a law office, even a person’s home or office, as long as there is a notary.
A home purchase is funded on the day of the closing, if everything goes according to plan. All original documents will need to be at the title company, completed according to title company instruction and loan directions, and all funds from parties, including the lender are in the title company escrow account.
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Posted on October 12, 2012, in Title and tagged Buyer, Clear Title, Closing, Driver's License, Escrow Deposit, Fort Myers, HUD-1, Jennifer Ferri, Law, Loan, Mortgage, Notary, Offer, Passport, Power of Attorney, Property Guiding, Real Estate Agent, Seller, SWFL Real Estate, Title Insurance, Title Junction, Title Policy, Title Work. Bookmark the permalink. Leave a comment.