We will ask you to pardon the professionals that will be assisting you through the buying and selling process as we have a lingo all of our own. Sometimes the terms are interchangeable and have more than one meaning, so be sure to ask for clarifications and surround yourself with professionals with experience. Due to federal loan guidelines there is a protocol of standards of practice that are required for a lender to process a loan to verify everything is accurate and in order to meet the lending guidelines. Another party to this process is our the Closing Title Company also known as the attorney and or escrow agent in some cases. These titles are used interchangeable because in many situations it is all done at one business as an all-inclusive service. Many attorneys do write title insurance and close on the transaction for you the same a title company .
To close the sale of a property, a neutral, third party (the escrow agent or more common in our area as the Closer or Attorney, will handle the legal details of the transaction seeing that all terms and conditions of the seller's and buyer's negotiated agreement are reached prior to the sale being finalized. This includes receiving payments and certificates, signing required forms, and obtaining the release documents for any loans or liens that have been paid off with the transaction, assuring you have a clear title to your property before the final price is fully paid.
The Closing Company will collect the following records:
- Purchase Agreement outlining the terms of sale, contingencies along with seller-assisted financing
- Requests for payments of work orders that need to be done prior to closing
- Request payoffs for the sellers loans or liens that maybe on the property in order to issue clear title conveyance to the buyer
- Real Estate Property Tax statements, verifying the amounts split between the buyers and sellers
- Home Owners Insurance Binder providing insurance will start on the date of closing
- Title search , abstracting and/or Title insurance policies for lender and buyer
- The Lenders Loan document package that will be signed by the buyer at the closing and notarized by the closer
Once the closer has complied and completed all of these items working collectively with the lender and the Realtor, the closing can take place. A final closing statement will b e prepared by the lender and closer for everyone’s review 72 hours prior to closing. The buyer will bring in any amount due by either having the lender arrange for all funds or bringing in the balance due in the form of a money order, cashier’s check or even wiring the funds to the closer. The funds must be certified in order for the closer to finalize and payout all expense then rendering the balance of proceeds to the seller, therefor completing the transaction and closing of the property .
| The Escrow Holder Will: | The Escrow Holder Won't: |
- Assemble escrow guidelines
- Perform a title search
- Meet the bank's standards as noted in the escrow agreement
- Accept payments from the buyer
- Prorate tax, interest, insurance and other fees according to instructions
- Record deeds and other paperwork as instructed
- Request title insurance policy
- Close escrow when all terms of agreement of seller and buyer have been met
- Disburse funds and finalize instructions
| - Advise you - the escrow company must stay at a fair, third-party status
- Dispense opinions about the outcome of your taxes
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This gives you a general outline of how the process works and of course as every transaction is different as it is based on the personal situation that will influence what the process is for every transaction. As your Realtors Roxanne and Kelsey will oversee the transaction from start to finish working cooperatively with both the lender and the attorney/closing title to ensure we meet the closing date to help you make your move as smooth as possible .