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WORKERS'
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What to
expect at a real estate closing.
Allow adequate time for your closing. A normal real estate closing when
a loan is involved will take about an hour.
Bring some form of photo ID, preferably a driver's license. This is
required in the State of Florida in order to notarize documents.
All funds for closing are required by law to be certified. Certified
funds can only be obtained from a bank or credit union; brokerage firms
cannot issue certified funds.
You may wire funds into our account if you prefer. However, a wire
transfer can take several hours to be posted in our account. In addition,
there is a fee for either sending or receiving a wire transfer. We advise
our clients to initiate all wires the day before the scheduled closing to
insure that the funds will be available at the closing. Please contact us
for wiring instructions.
We will make every possible effort to complete your Settlement Statement
at least 24 hours before the closing so that all parties have a chance to
review their changes. However, we cannot complete the Buyer's figures unless
we have been given instructions and approval by the lender.
If you have questions concerning your funds or if you have any special
needs, please call our office and speak with your closing agent well in
advance of the closing date.
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| The following
is a list of the most common documents the seller is required to sign: |
- The Settlement Statement ("HUD-1"): Itemizes the fees paid by
both the Buyer and the Seller and gives the bottom line figure due to/from
each party.
- Tax Proration Agreement: An acknowledgment by both the Buyer
and the Seller that taxes have been prorated between them using the best
available information, and contains an agreement to recalculate the tax
proration when the actual tax bill is available.
- Seller's Affidavit: A statement certifying that the Seller is
the true and lawful owner of the property, that there are no liens against
the property other than those disclosed, and that there are no other
matters which would adversely affect title to the property.
- Payoff Statement: Issued by the lender being paid off, this
shows the principal balance, accrued interest due, and any fees required
in order to satisfy the loan.
- Notice to Seller: General information for the Seller regarding
insurance, the payoff, the survey and termite inspections, and
typographical errors.
- Warranty Deed: The document which is recorded in the Public
Records and transfers legal ownership of the property.
- 1099-S Exemption Form: States that the criteria exempting the
requirement for reporting to the IRS have been met. If this is not the
case, a 1099-S form will be issued. Please note: each transaction is
different, and as such, additional documentation may be required.
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The following
is a list of documents generated by the title company that
the buyer will generally be required to sign: |
- The Settlement Statement ("HUD-1"): Itemizes the fees paid by
both the Buyer and the Seller and gives the bottom line figure due to/from
each party.
- Tax Proration Agreement: An acknowledgment by both the Buyer
and the Seller that taxes have been prorated between them using the best
available information, and contains an agreement to recalculate the tax
proration when the actual tax bill is available.
- Notice to Buyer: General information concerning the survey and
termite inspection, and clerical errors.
- Purchaser's Affidavit: A statement that the Buyer has no
knowledge of any matters that would adversely affect title.
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Each lender
will have different documents for the buyer to sign; however, almost
all residential loan packages will contain the following: |
- Note: The promise of the Borrower to repay the loan, and the
basic terms of the repayment.
- Mortgage: The document which is recorded in the Public Records
granting the lender a lien on the property to secure the loan. This
document gives the lender the right to foreclose if the Borrower defaults
on the Note.
- Truth-In-Lending Statement: A required disclosure to the
Borrower stating the annual percentage rate (this rate contains the fees
charged by the lender and adds them to the note rate) and the total cost
of the loan over its life.
- Anti-Coercion Statement: An acknowledgment from the Borrower
that the lender did not require the homeowner's insurance to be purchased
from a particular company.
- IRS Forms W-9 and 4506: The W-9 enables the lender to report
the interest paid annually to the IRS; the 4506 is used in the event of an
audit by HUD and allows the lender to obtain copies of tax returns
directly from the IRS.
- Payment Letter: Gives the amount and due date of the first
payment.
- RESPA Servicing Disclosure: Discloses to the Borrower that the
lender has the right to transfer the loan on the secondary market.
- Compliance Agreement: An agreement by the Borrower to correct
clerical or typographical errors.
- HUD-1 Addendum: A statement that the HUD-1 Settlement Statement
is a true, accurate, and complete statement of the transaction.
- Loan Application: A typed copy of the Borrower's Loan
Application
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After the
closing
After the closing, the Title Company still has work to do. First, the
Lender’s signed documents must all be put in order and returned to the
Lender within 24 hours. The payoff of the existing Mortgage(s) must be sent
out or delivered as quickly as possible. And the deed and mortgage must be
recorded. This is normally done within 24 hours of closing. Sometimes the
real estate taxes must be paid also, so a representative of our company will
deliver the payment to the Tax Collector. When a document is recorded, that
means that the Clerk of the Circuit Court copies the original document and
that copy is entered into the permanent records. Each page of every document
is recorded into a book and is given a page number. That book and page
number is stamped across the margin of the original document. After the
documents are recorded, they are normally returned to the Title Company.
Once the recorded documents are returned, the title work is updated one more
time, to make sure nothing was recorded during the “gap” period and to
verify the recording numbers on the documents. Also, the satisfaction of
mortgage, which was paid off, should show up on the final title update. Once
this is done, the final Policy of Title Insurance can be issued. It is
prepared and then mailed out to the new property owners and their lender.
They should expect to receive the final policy between 6 and 10 weeks after
closing. |
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