10 Tips for a Smoother Closing
There is little more rewarding for real estate agents or their clients than an on-time closing with no unexpected bumps along the road.
As your escrow partner, we offer our top 10 tips for ensuring smooth, timely closings:
- Report changes – Notify us without delay if there are changes in the charges or invoices to be reflected on the closing statement – and remind your clients that they will need a current and valid government-issued ID when signing any documents requiring notarization.
- Powers of attorney – Let us know early on if a Power of Attorney (POA) will be used. The title company must review POA forms for content and specific powers granted to the Attorney-in-Fact. The mortgage lender, if the buyer is getting a new loan, must also approve, as not all lenders allow a POA – and the title company may need to speak with the person granting a POA on the day of closing to verify that it is still in full force and effect.
- Crisis prevention – Help us manage problems well in advance of closing by promptly reporting any liens or other potential title problems of which you are aware, such as death of an owner, probate, bankruptcy, divorce, mechanic’s liens, etc.
- Cash for closing – Buyers should understand that funds required for down payment, closing costs, and fees due at closing must be wired to the escrow company.
- Inspections – Arrange for inspections to be completed before the expiration of the contingency period. Details as to who (buyer or seller) is paying for the inspections, and any needed repairs, as well as the name of the company preferred if the sellers are providing a home warranty, should be included in the purchase agreement – and all invoices for same should be delivered to the escrow company as early as possible before closing.
- Lenders past and present – Some lenders require 48 to 72 hours or more to prepare payoff statements. The escrow company needs the name and contact information for the loan officer at the buyers’ new mortgage company, and the contact name, address, and loan number for the sellers’ present mortgage lender(s), if any.
- Marital status – The purchase agreement should state the marital status (married, single, divorced, widow, etc.) of each seller and buyer. If title is vested in only one spouse’s name, the other spouse’s name should be included with the contract – and the other spouse may need to sign an interspousal deed releasing his or her interest in the property.
- Contact details – Provide full legal names and complete contact information for all parties, including the real estate brokers and agents, in the purchase agreement.
- Survey timing – If a new survey is required, promptly notify the title company to order it. Turnaround time for a survey is five or more business days.
- Loan Estimate – Remind your buyers that the Loan Estimate (formerly, good faith estimate) is only an estimate. Contact the escrow company for actual closing costs.
Barbara Pronin is an award-winning writer based in Orange County, Calif. A former news editor with more than 30 years of experience in journalism and corporate communications, she has specialized in real estate topics for over a decade.
This material is not intended to be relied upon as a statement of the law, and is not to be construed as legal, tax or investment advice. You are encouraged to consult your legal, tax or investment professional for specific advice. The material is meant for general illustration and/or informational purposes only. Although the information has been gathered from sources believed to be reliable, no representation is made as to its accuracy.
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