We’d like to go through what we can expect and what needs to be prepared so we can ensure a smooth and efficient closing.
Contact Phase – Now under contract.
Title
When you go under contract we will send the contract and the sale information to the title company. They will process the file, hold funds in escrow, conduct a title search and process the file.
Closing Date
The closing date is one of the most important details in the sale. It is on the first page of the contract and you should write it in your calendar. You need to have all of your signed paperwork to the title company by this date. Several closing documents need to be notarized , mark a date in your calendar to set up a notary prior to closing.
If you fail to “perform” by the closing date although very unlikely, the buyer can withdraw from the contract. 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.
FIRPTA
If you are a foreign national, we will advise your tax advisor you have gone under contract to sell and that there will be a FIRPTA withholding to resolve.
Mortgage
If your property has a current mortgage you will need to contact them and let them know you intend to sell your home. You will also need to give authorization to the title company so they can order a “pay off”. Have the information of your lender handy so we can get this information quickly.
Management
If your home is in a management program you should inform your management company that we are now under contract and to assist the buyers agent where necessary.
If you have any owner bookings and deposits held and they are to convey then correlate this information and be prepared to supply so we can have it integrated with the closing.
We will work with the buyers agent to discuss if the buyer will continue with the current management team. We have no control ove rthat decision but will work to make sure this is resolved as soon as possible.
Home Inspection
The buyer will conduct a home inspection. We must ensure that the buyers home inspector gets access to the property.
Items will come up in the home inspection report and we can discuss how to address those when we have received the report.
There is no one answer to resolving inspection items. Expect to allow for a little give and take and generally they will work out.
Closing Phase – Preparing to close.
Utilities.
You should check to make sure the Water, Phone, Electric, Alarm System and any other items have been prepared to be terminated. As a courtesy you may allow for a few days post closing – it’s also good to bear in mind that we might not close on time so cutting the power off on the closing date could cause issues especially if you have been renting your property and there may be renters in the home. The buyer should have had everything transferred already but – especially with new home owners it’s not always done as efficiently as we hope.
You should also inform the HOA, your insurance, lawn and pool care and any vendors you employ on a regular basis. It is your responsibility to ensure all accounts are closed and you are no longer billed for services at your property.
Settlement statement
If all has gone well with the title company we should expect to receive 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 review 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.
Also read – Closing Fees.
Buyer Financing
Lenders are notorious for being late. Regardless of how well we have planned the sale on the sellers side we have no control over the buyers lender and in most cases nor does the buyer. The title company may not receive the lenders package until a day or two before the closing date which gives little time to go through the closing process. Be aware of this and be prepared in advance.
Funding.
You will be asked via the title company how you wish to have the funds dispersed. They will work with you to send the funds to your desired financial institution.
Be aware that if you are a foreign national and intend to take the funds back to your country of origin you should have the proceeds transferred directly to your FX account. Pulling funds from a US bank when you are not in the US can be tricky. You can also ask the title company to split the disbursement if you wanted to keep some funds in the US and send a portions to your home country.
If you have to bring funds to the table to close then make sure this has been sent to the title company in advance. Make arrangement to have this amount wire and to arrive at least one day prior to closing.
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 we would advise this method.
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.
There will be documents that will require to be notarized. You need to locate a notary in advance and prepare to visit him a day or so before closing. Hopefully the title company will have the closing docs to you in advance so you can take care of this. All owners on the deed need attend the notary.
The conditions of the mail away process will be determined by the title company will advise you on how your transaction will be handled. In may cases the title company can close on a scanned copy of the closing documents and an air-bill number of the FEDEX delivery of the originals. Other will demand on the originals. It is imperative you send these documents back as soon as possible.
List of UK Notaries
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.
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 your property will be sold. We will have the pleasure of congratulating you on your sale.
Make sure you have notified your management company and have all keys and any information pertaining to the property delivered to either to us or the title company in advance.
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.
If the buyer is financing there is a very reasonable possibility there may be a delay in the closing.
Post Closing.
We will be available for you for any additional items you require for the sale of your property.