Real Estate CLOSING......
Don't Let the "Door" Hit You on the Butt!
REinfo4me.com
How to make sure your real estate closing goes smoothly.
Escrow: Is a term used for both the time period, the bank account and the agent during the real estate purchasing process.
Escrow Account: is the bank account set up to hold all the money collected during the Escrow period.
This money can only be disbursed with the agreement of BOTH the
buyer and seller.
Escrow Agent: is the licensed, bonded and insured employee of the Escrow Company.
Escrow Company: is a NEUTRAL entity which gathers together and holds such things as earnest money deposits, loan documents, insurance documents and any bills for service performed in relation to the real estate closing transaction.
Escrow Companies will also act as agents for your REAL ESTATE LENDER, making sure all conditions of your loan are satisfied before closing.
They also act as real estate closing agents in certain areas.
Escrow Companies are licensed by the State and have to carry a surety bond to insure clients against loss due to negligence or unlawful acts.
Most Escrow Companies also carry errors and omission insurance.
A lot of Escrow Companies are subsidiaries of TITLE INSURANCE COMPANIES.
Using the same Company both for Escrow services and Title Insurance can sometimes result in lower fees.
Independent Escrow Companies: As the name suggests, these Escrow Companies are not affiliated with a Title Company, BUT they may be owned by the real estate Broker on one side of the transaction.
I, personally, have always had a better experience using a truly independently owned company!
The main reason for this is they are not beholden to anyone and tend to put the best interests of their clients above all.
They also give more personal service and go "above and beyond" in getting the real estate sale closed.
If your real estate transaction is in the Greater Los Angeles area, then I have one of the BEST ESCROW COMPANIES for you. I've used them for over 16 years.
Please fill out the form below and they will get in touch right away.
The reason for the form is to prevent sp*mmers from hijacking email addresses.
IMPORTANT! Do not forget to do a FINAL WALKTHROUGH 2 or 3 days PRIOR to closing to make sure all repairs etc. have been done.
Now we are continuing down American Dream Lane!
Closing: Some parts of the country don't use Escrow Companies as real estate closing agents.
Title Companies, real estate attorneys and settlement companies undertake the "escrow process".
In these areas, "Escrow" usually only means the escrow account and the timeframe for the real estate closing.
Documents you will need or receive at, or before, CLOSING.
Truth in lending statement: outlining all the costs associated with obtaining your loan.
HUD 1: government mandated, showing all the closing costs.
Loan Note: which states that you promise to repay the loan and giving the lender's options if you don't.
Deed of Trust: secures the loan by placing a lien on the property.
Grant Deed: This transfers the ownership from the seller to the buyer.
FIRPTA: The Foreign Investment in Real property Tax Act is so non U.S. residents do not escape without paying taxes on profit they make from selling real estate.
RESPA: You should have got this within three days of your initial loan application. It gives you and ESTIMATE as to the costs involved in your real estate transaction.
Funds needed to Close
The buyer will need to bring money to escrow before the deal can close.
The money is for all the things not already paid for, such as:
Title Insurance
Homeowners Insurance
Escrow or Settlement Company fees
Down Payment on Loan
Loan Fees (points, loan origination, appraisal, credit report etc.)
Prorated Property Taxes
Recording Fees
Notary Fees
PMI/MMI Fees (if applicable)
Any other fee not paid
Cashiers Check: Unlike your initial earnest money deposit, the balance of funds needed for closing will have to be in the form of a cashiers check.
The Title Company will not record your title to the real estate unless all funds have cleared.
In some States, there is actually a closing meeting of all parties concerned.
This meeting around the "closing table" is where last minute hitches are taken care of and it normally includes:
The Buyers
The Sellers
Attorneys for both parties
Real Estate Closing Agent or Escrow Agent
Both the Buyer's and Seller's real estate agents
A Title Company Representative or Lender's Agent
In Southern California, and I don't know where else, there is no real estate closing table!
There are also usually no attorneys involved, and the buyer and seller rarely meet after the final walkthrough.
Everything is handled by the Escrow Company.
That's it for Escrow/Closing, now on to CONTRACTS
|
