Coordinated Closings

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RISMEDIA-NRRE July 2001

Coordinated Closings

By Sheila Hensley

When preparing for a closing, keeping good records, having the correct information readily available and maintaining good communication with the “closing team” is the foundation on which success is established. Real estate agents?including buyer representatives?are involved in every closing. Therefore an agent, whether representing the buyer or seller, is responsible for coordinating closing details.

A closing file passes through many stages and various operations from delivery of the contract to the day of closing. It would be illuminating to spend a half-day or so with an attorney?s assistant or paralegal to see what data is needed for the closing file and how it is assembled and what is done with it.

You will be likely to find that basic information for the closing file includes:

? A copy of the contract including properly signed, executed and dated disclosure forms and addenda. How the title is to be transferred must be clearly stated.

? Full names or initials including such qualifiers as Jr., Sr., II or III.

? Marital status? an important item even if the

buyers are taking title in only one name.

? Forwarding address for the sellers, if available.

? Phone numbers for all parties involved, including the agents representing the principals. Both day and evening numbers should be included.

? Social security numbers of all parties for identification purposes. (Some states also require a copy of the driver?s license.)

? Mortgage company telephone number, along with the names and direct lines or extensions for both the loan originator and the loan processor.

? Home owner?s insurance agent name and phone number.

? Name and phone number of the seller?s attorney.

? Contract amendments that occur at any time prior to closing.

? Evidence of earnest money made available to seller or seller?s attorney before closing.

? Documentation in the form of a paid receipt

or complete work order for any repair work undertaken prior to closing. Include phone numbers and contact names of the company and/or individuals who performed the work.

When setting a closing date, don?t expect the impossible. You are more likely to get careful attention on a transaction if you have a reputation for reasonable time frames, thoroughness and efficient closings.

As the buyer?s rep, you should be the captain of a team of professionals who working together make the transaction a successful one. You can facilitate the process by knowing what is required at each phase of the operation, as well as by knowing how the members of your team are accustomed to working. If a closing involves three different attorneys, you must know all members of the trio and follow their procedures. Yes, this all means more work for you, but the reward is an easy, comfortable closing with no surprises?a more than acceptable tradeoff for professional buyer representatives.

Some other important “must-dos” for the buyer rep:

? A home warranty needs to be ordered and a confirmation thereof placed in the attorney?s file.

? The seller needs to be advised to provide you specific information on any outstanding loans on the property.

? Obtain loan pay-off information?including equity lines or any other outstanding loans on the property?and send it to the attorney.

? Document the file with any fax confirmations received.

A buyer?s rep needs to request that the closing file be delivered to the attorney at least three full working days before closing. And, to make sure that all participants have a contact list for all those involved in the process (i.e., buyer, buyer?s rep, buyer?s attorney, seller, seller?s agent, seller?s attorney, appraiser, mortgage company, termite company, repair vendors).

As the closing date approaches, the buyer rep has some very specific tasks to perform. Clients need to be reminded of the closing date and site one week prior. Careful buyer reps also will review their own file checklist to make certain the file contains all the needed information?and of course to get anything that is missing.

If checks for service are to be paid from proceeds by the attorney, be certain any costs incurred by the buyer are submitted for prompt reimbursement. Clearly state and confirm the commission disbursement instructions, including who gets what percentage. Include company name, address, phone number, broker and agent(s) receiving the commission.

If home owner association dues are involved in the transaction, make sure the attorney knows if dues have been paid and whether they are billed either monthly or annually. Get the name, address and phone number of any contact person(s) at the association.

There is no established template for closing details any more than there is a precise minute-to-minute timetable. What professional buyer representatives need to do is create their own checklist and schedule, beginning with the basics mentioned above. Then, if necessary, expand with experience. Checklists and procedures are best developed from actual situations and real needs. But, the overriding point is, make your closing checklist and plan your activities. Doing both will lead to comfortable and successful closings.

Sheila Hensley, ABR, ABRM, is president of Executive Relocation Services in Memphis, Tennessee. A regular contributor to National Relocation & Real Estate, she serves on the REBAC Advisory Board and is a charter member of the REBAC Hall of Fame. She can be reached at ersci@relocationhelp.com.


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