As we reach the closing phase of the buying process I’d like to go through what we can expect and what needs to be prepared so we can ensure a smooth and efficient closing.
Closing Date
The closing date is one of the most important details in the sale. It is on the first page of your contract and you should write it in your calendar. You need to have all of your signed paperwork and your funds to close to the title company by this date. It would be very wise to have it there at least one or preferably two days prior.
If you fail to “perform” by the closing date the seller can retain the property and claim your deposit. If you think for any reason you will not be able to make the closing date let us know as soon as possible so we can file for an extension.
Utilities.
You should check to make sure the Water, Phone, Electric, Alarm System and any other items have been prepared to transfer to your name. If you have not received information on this you should contact the transaction coordinator to ensure this process has been started.
As owner you are responsible for the utilities being transferred, we can help by supplying the information and contacts. Normally a buyer will instruct the property management company to do this for them – but if you have not chosen or are planning on changing property management company the you may want to make the connection yourself.
They may ask for a copy of your closing statement to be provided as proof of purchase if available. One should also be sent to your management company if they are making the transfer for you.
Insurance
You will require property insurance for your property.
If you have not done so already you should make arrangements to have home insurance in place by the closing date.
Settlement statement
If all has gone well with the title company we should expect to be receiving a settlement statement, this is the document that gives us an estimate of the closing costs for the sale of the property. We usually get to view this and approve it before it is sent to you so we can have any items rectified that we feel need to be addressed.
This is not the final document but in some cases it may be if the title company has been able to satisfy all of the requirements to deliver a clear title.
In some cases they may still be waiting for a return of some information and we’ll let you know this is missing from the document.
When you receive the settlement statement as well as the figures you should also check your name and address is correct, they will use this information to register the deed.
Funding.
You will most likely have already received the escrow account information for the title company when you sent in your EMD deposit. If you don’t have that information then ask the transaction coordinator for it.
You can pre fund the escrow account anytime after you receive the final settlement statement. It is advisable to do this as soon as we know the final settlement amount.
Mail Away
The process used to allow the transfer and the signing of the documents between parties in the sale of property is called the “mail away” process. Unless you specifically need to be at the closing I would advise this method.
This process allows the documents to be sent to you before or on the day of closing for you to sign and return.
Depending on the conditions of the sale the documents can be signed with or without the need for a notary, they may also be able to accept facsimile versions of the originals until the originals can be mailed.
It’s a very simple process which involves the title company sending you the documents, you signing them and returning them to the title company.
The conditions of the mail away process will be determined by the title company and our transaction coordinator will advise you on how your transaction will be handled. It is imperative you send these documents back as soon as possible.
Pre-closing.
Ideally we would like to have all of the documents signed and the sale funded prior to the closing date.
It’s not always possible to do this either because the buyers funding may not be available or the paperwork has still to be completed.
It is however in our best interests to have these two steps completed prior to the closing date. Simple issues can hold up the closing and the funding of the sale if we try to fund and sign on the closing day so we will do everything possible to make sure we can accomplish this prior to the date.
To help, make sure your funds are ready to be moved to the title companies escrow account several days prior to closing and try to arrange to have a notary available when needed.
obtained (e.g., from your contract, the recipient’s website, etc.). DO NOT USE THE PHONE NUMBER IN THE EMAIL. In addition, before Buyer or Seller wires any funds to any party (including Buyer or Seller’s attorney, title agent, mortgage broker, or real estate broker) personally call them to confirm the information is legitimate (i.e., confirm the ABA routing number or SWIFT code and account number).
We will NEVER ask you to wire money to an account. Only accept wiring instructions directly from the title company.
The Closing.
The closing will occur in the title companies office, most likely attended by only the office staff. In many cases the title company may not even be in the Orlando area as mail away is generally international or out of state buyers so there is not the need for local office.
All the documents and the funds are correlated, the final paper work is processed and the deed registered with the county. At this point the sale will be “funded” and you will be officially the owner of the property. We will have the pleasure of congratulating you on your acquisition and welcome you to home ownership in Central Florida.
If there are any keys or items to be delivered we will make sure they are sent to you directly or to your property management company.
If you are closing via mail away there is a very good chance that the title company will require the originals before funding. Those normally are sent overnight so the official closing most likely will not happen until the day after you sign the paperwork. Do not plan to access or have someone access the property on the day of close. It may not belong to you until the following day.
Read this article for additional information.
Delayed Closings
As much as the buyer, seller, the agents involved and the title company want to sale to go through on time a closing can be delayed.
The cause can be for many reasons but you should realize that this is a possibility and that any arrangements you make regarding the property should be made with this in mind.
You should not arrange to stay in the property until after closing, nor should you make any arrangements to have work carried out or clients scheduled to visit on or around the closing date.
Post Closing.
We will be available for you for any additional items you require for your new property.
If you are working with a property management company they will be responsible to help you run your new home / business but please feel free to call me anytime for assistance.
If prepared well the closing can be surprisingly uneventful, most buyers are surprised (and relieved) that the day passes and that they receive only a phone call to let them know they are now the new owners.
There can of course be last minute issues so make yourself available should we need any final items to be addressed, but if we have prepared property we expect the first call or email you will get will be from us, and that’s the best part of the whole process when we get to tell you that your dream vacation home is now a reality!
Make sure you have your property manager change the locks – or we can recommend a locksmith!
WIRE FRAUD PREVENTION NOTICE
Criminal/hackers are targeting the email accounts of various parties involved in real estate transactions (e.g., lawyers, title agents, mortgage brokers, real estate agents). These emails are convincing and sophisticated. This illegal activity has led to fraudulent wiring instructions being used to divert funds to the criminal’s bank account. These emails may look like legitimate emails from a party to the transaction (e.g., lawyers, title agents, mortgage brokers, real estate agents). If you receive an email regarding wire instructions, do not click on any links which might be in the email and do not reply to the email.
You must call the Sender of the email for verification, and when calling the Sender, use a number that is independently