Tuesday, June 21, 2005
partnership model in real estate transactions
TRANSACTION PROCESS/ COORDINATION~ THE CHECKLIST~
copyrighted material. do not copy or share without express permission
~from ASHEVILLE 1031
Eco-Steward Realty, inc.
Mountain Homes & Land Legacies in the Spirit of the Appalachians and
www.janeAnne.com
IT TAKES TEAMWORK TO CREATE A SMOOTH CLOSING EVENT
~ THE CHECKLIST~
on the part of THE BROKERAGE FIRM
1. Acts in a timely and effective manner as your liaison throughout the process.
2. Represents your best interests as we write and review any Offer to Purchase and Contract (OPC).
3. Immediately presents OPC to the seller with earnest money /or alternative 2 check, if appropriate. (When your offer is accepted, earnest monies are placed in the listing agency's escrow/trust account.)
4. Follows through on each step of the process in order to achieve a successful closing.
5. Assist in making the transaction(s) as smooth as possible.
on the part of THE BROKERAGE FIRM & YOU
Your lender orders appraisal (buyer or agent might order it for a cash purchase
DONE _____
Inspections are ordered after an acceptable appraisal is received (If time is a factor, and you are confident the home will appraise, inspections are ordered and completed as soon as possible.)
DONE _____
Any repair issues are negotiated with the seller and a Repair Agreement is signed.
DONE _____
Termite inspection is ordered and termite control in place/remedied and then this must be checked within 30days of closing if evidence of active termite infestation is present.
DONE _____
If desired, surveys are ordered after a successful appraisal and inspections--buyers don't want to invest too much into the property until assured that the closing can happen.
DONE _____
Buyer applies for hazard insurance and the information goes to the lender and closing attorney.
DONE _____
Nearing closing date, buyer arranges for utilities to be switched over to their name.
DONE _____
Closing takes place at the office of the buyer's attorney. The seller's attorney has forwarded signed deeds to the closing attorney.
DONE _____
Buyer gives attorney certified funds to pay for closing and signs loan papers and other required documents. DONE _____
Attorney records new deed at the courthouse and disperses funds due to all parties. DONE
YOUR PART IN A SMOOTH CLOSING PROCESS
1. Secure Financing
DONE _______
If you are not financing your investment with CASH, you will need a Letter of Commitment for a mortgage from the financial institution of your choice. . This can be a time-consuming process, so why not start the process even BEFORE making an Offer. Definitely, it IS to your advantage to establish a relationship with a bank and obtain a pre-qualification letter before you make an Offer. This not only can speed the lending process, but when a seller knows you are pre-qualified, it can make your Offer more attractive in the offer discussion.
2. Follow-up on Property Appraisal & Possibly Order Boundary Survey
DONE _______
If you seek a loan when buying property, the lender will order and appraisal. The property MUST appraise at the sale price or higher, or you will have to supply the difference, or get the seller to lower the price of the property. Check in with your lender regularly to make sure the appraisal has been ordered.
Make sure your Real Estate Transaction Coordinator is notified so that scheduling details can be coordinated and be sure to keep in touch with your lender and Transaction Coordinator at so that everyone involved knows when the appraisal comes, and that it DID “appraise”.
3. Decide to/not to Order a (new) Boundary Survey of the Property.
DONE _______
Buyers pay for surveys. Most lenders do NOT require a survey, but we recommend them especially if the one on file is old and there may be encroachments on the property since it was done, and/or if the property has acreage.
4. Secure Your Closing Attorney
DONE _______
Buyers and sellers contract with the attorney of their choice. Often, Real Estate professionals recommend that home buyers and sellers use different attorneys so that each party has unbiased representation if problems develop that require negotiation.
In the State of North Carolina, the closing event is facilitated by the buyers’ attorney (with seller opting for representation by the same attorney or another attorney.) The attorney does the title search, prepares the final documents, and acquires title insurance for buyers. Attorneys and real estate agents work with lenders to coordinate the closing, making sure everything is handled on time. Attorneys prepare deeds for sellers.
INFORM the Real Estate Transaction Coordinator of any questions/needs and please do keep everyone “in the loop.”
DONE _____
Transaction/Closing Coordinator Sets the Closing Date with Your Attorney
DONE _____
The closing date is mutually decided between buyer and seller in the Offer to Purchase and Contract. That’s when all final documents are signed, closing costs are paid and ownership of the home legally changed.
*Clear Title.
DONE _____
Property should have a General Warranty Deed for a clean exchange of ownership. The Closing Coordinator will do a preliminary search in county records to let you know if/if not your property has clear title, but your attorney is responsible to do the Title Search and to prepare the final documents.
*Closing ...a Note:
DONE _____
BE SURE to bring legal identification and a check for closing costs with you to the closing.
DONE _____
YOUR CREDIT SCORE will be checked again in the day or two before Closing. Be aware that charging large items like sub-zero refrigerators and riding mowers in the weeks before Closing might cause the Closing to fail!
CONTINGENCIES
All contingencies must be met by specified dates. DONE _____
Contract contingencies for some types of inspections, such as those for septic systems, are found in the Additional Provisions Addendum. DONE _____
Other contingencies, such as appraisal requirements, and financing are found in the main body of the Offer to Purchase and Contract. DONE _____
Special contingencies such as buyer possession before closing,
seller financing and more may also be added. DONE _____
5. Secure Inspector and Follow-up on Property Inspection: DONE _____
Residential Property Disclosure (in North Carolina, NC law requires that most sellers furnish a residential property disclosure that describes the condition of all systems in the home, this is NOT a guarantee of the condition of the home. )
Real Estate professionals strongly urge clients to order a professional Home Inspection by a licensed property inspector. It is important, because an inspection could reveal serious defects in the home and be grounds for nullifying the Offer to Purchase and Contract. (Inspections are typically paid for by the buyer.)
Ask about what is on a standard inspection, and what additional items may choose to have inspected.
Decide on your inspection list, and INFORM the Transaction Coordinator ASAP!
(In the State of North Carolina, contingencies for basic home inspections and pest inspections and radon inspections are part of the main body of the contract in North Carolina. Dates are inserted to indicate when buyers will complete inspections and when requests for repairs, if any, will be given to the seller.NOTE: If these contingencies, and others listed in the purchase contract, are not met, the deal can be nullified, so please keep your Closing Coordinator “in the loop” so that we can make sure all the “t’ s” are crossed and “i’s” dotted ...
6. GOOD EYE! Buyers Work with Closing Coordinator to Tie-up Any “Loose Ends” DONE _____
Purchase HOME OWNERS INSURANCE ….required by the lender. Make sure you let your attorney and Transaction Coordinator know when insurance is purchased, and let each know the contact information for the agent/company.
DONE _____
Repairs Complete. Work with your Transaction/Closing Coordinator to make sure any repairs having to do with city /state regulations pertaining to property transfer are met.
DONE _____
Schedule final “walk-through” for the same day as closing event with your Closing Coordinator.
DONE _____
Complete the final property "walk-through" with/or by your REALTOR.
This walk-through, assures you that the property is in the condition contractually agreed upon.
DONE _____
For more information please contact 1031@janeAnne.com
and visit www.janeAnne.com
TRANSACTION PROCESS/ COORDINATION~ THE CHECKLIST~
copyrighted material. do not copy or share without express permission
~from ASHEVILLE 1031
Eco-Steward Realty, inc.
Mountain Homes & Land Legacies in the Spirit of the Appalachians and
www.janeAnne.com
IT TAKES TEAMWORK TO CREATE A SMOOTH CLOSING EVENT
~ THE CHECKLIST~
on the part of THE BROKERAGE FIRM
1. Acts in a timely and effective manner as your liaison throughout the process.
2. Represents your best interests as we write and review any Offer to Purchase and Contract (OPC).
3. Immediately presents OPC to the seller with earnest money /or alternative 2 check, if appropriate. (When your offer is accepted, earnest monies are placed in the listing agency's escrow/trust account.)
4. Follows through on each step of the process in order to achieve a successful closing.
5. Assist in making the transaction(s) as smooth as possible.
on the part of THE BROKERAGE FIRM & YOU
Your lender orders appraisal (buyer or agent might order it for a cash purchase
DONE _____
Inspections are ordered after an acceptable appraisal is received (If time is a factor, and you are confident the home will appraise, inspections are ordered and completed as soon as possible.)
DONE _____
Any repair issues are negotiated with the seller and a Repair Agreement is signed.
DONE _____
Termite inspection is ordered and termite control in place/remedied and then this must be checked within 30days of closing if evidence of active termite infestation is present.
DONE _____
If desired, surveys are ordered after a successful appraisal and inspections--buyers don't want to invest too much into the property until assured that the closing can happen.
DONE _____
Buyer applies for hazard insurance and the information goes to the lender and closing attorney.
DONE _____
Nearing closing date, buyer arranges for utilities to be switched over to their name.
DONE _____
Closing takes place at the office of the buyer's attorney. The seller's attorney has forwarded signed deeds to the closing attorney.
DONE _____
Buyer gives attorney certified funds to pay for closing and signs loan papers and other required documents. DONE _____
Attorney records new deed at the courthouse and disperses funds due to all parties. DONE
YOUR PART IN A SMOOTH CLOSING PROCESS
1. Secure Financing
DONE _______
If you are not financing your investment with CASH, you will need a Letter of Commitment for a mortgage from the financial institution of your choice. . This can be a time-consuming process, so why not start the process even BEFORE making an Offer. Definitely, it IS to your advantage to establish a relationship with a bank and obtain a pre-qualification letter before you make an Offer. This not only can speed the lending process, but when a seller knows you are pre-qualified, it can make your Offer more attractive in the offer discussion.
2. Follow-up on Property Appraisal & Possibly Order Boundary Survey
DONE _______
If you seek a loan when buying property, the lender will order and appraisal. The property MUST appraise at the sale price or higher, or you will have to supply the difference, or get the seller to lower the price of the property. Check in with your lender regularly to make sure the appraisal has been ordered.
Make sure your Real Estate Transaction Coordinator is notified so that scheduling details can be coordinated and be sure to keep in touch with your lender and Transaction Coordinator at so that everyone involved knows when the appraisal comes, and that it DID “appraise”.
3. Decide to/not to Order a (new) Boundary Survey of the Property.
DONE _______
Buyers pay for surveys. Most lenders do NOT require a survey, but we recommend them especially if the one on file is old and there may be encroachments on the property since it was done, and/or if the property has acreage.
4. Secure Your Closing Attorney
DONE _______
Buyers and sellers contract with the attorney of their choice. Often, Real Estate professionals recommend that home buyers and sellers use different attorneys so that each party has unbiased representation if problems develop that require negotiation.
In the State of North Carolina, the closing event is facilitated by the buyers’ attorney (with seller opting for representation by the same attorney or another attorney.) The attorney does the title search, prepares the final documents, and acquires title insurance for buyers. Attorneys and real estate agents work with lenders to coordinate the closing, making sure everything is handled on time. Attorneys prepare deeds for sellers.
INFORM the Real Estate Transaction Coordinator of any questions/needs and please do keep everyone “in the loop.”
DONE _____
Transaction/Closing Coordinator Sets the Closing Date with Your Attorney
DONE _____
The closing date is mutually decided between buyer and seller in the Offer to Purchase and Contract. That’s when all final documents are signed, closing costs are paid and ownership of the home legally changed.
*Clear Title.
DONE _____
Property should have a General Warranty Deed for a clean exchange of ownership. The Closing Coordinator will do a preliminary search in county records to let you know if/if not your property has clear title, but your attorney is responsible to do the Title Search and to prepare the final documents.
*Closing ...a Note:
DONE _____
BE SURE to bring legal identification and a check for closing costs with you to the closing.
DONE _____
YOUR CREDIT SCORE will be checked again in the day or two before Closing. Be aware that charging large items like sub-zero refrigerators and riding mowers in the weeks before Closing might cause the Closing to fail!
CONTINGENCIES
All contingencies must be met by specified dates. DONE _____
Contract contingencies for some types of inspections, such as those for septic systems, are found in the Additional Provisions Addendum. DONE _____
Other contingencies, such as appraisal requirements, and financing are found in the main body of the Offer to Purchase and Contract. DONE _____
Special contingencies such as buyer possession before closing,
seller financing and more may also be added. DONE _____
5. Secure Inspector and Follow-up on Property Inspection: DONE _____
Residential Property Disclosure (in North Carolina, NC law requires that most sellers furnish a residential property disclosure that describes the condition of all systems in the home, this is NOT a guarantee of the condition of the home. )
Real Estate professionals strongly urge clients to order a professional Home Inspection by a licensed property inspector. It is important, because an inspection could reveal serious defects in the home and be grounds for nullifying the Offer to Purchase and Contract. (Inspections are typically paid for by the buyer.)
Ask about what is on a standard inspection, and what additional items may choose to have inspected.
Decide on your inspection list, and INFORM the Transaction Coordinator ASAP!
(In the State of North Carolina, contingencies for basic home inspections and pest inspections and radon inspections are part of the main body of the contract in North Carolina. Dates are inserted to indicate when buyers will complete inspections and when requests for repairs, if any, will be given to the seller.NOTE: If these contingencies, and others listed in the purchase contract, are not met, the deal can be nullified, so please keep your Closing Coordinator “in the loop” so that we can make sure all the “t’ s” are crossed and “i’s” dotted ...
6. GOOD EYE! Buyers Work with Closing Coordinator to Tie-up Any “Loose Ends” DONE _____
Purchase HOME OWNERS INSURANCE ….required by the lender. Make sure you let your attorney and Transaction Coordinator know when insurance is purchased, and let each know the contact information for the agent/company.
DONE _____
Repairs Complete. Work with your Transaction/Closing Coordinator to make sure any repairs having to do with city /state regulations pertaining to property transfer are met.
DONE _____
Schedule final “walk-through” for the same day as closing event with your Closing Coordinator.
DONE _____
Complete the final property "walk-through" with/or by your REALTOR.
This walk-through, assures you that the property is in the condition contractually agreed upon.
DONE _____
For more information please contact 1031@janeAnne.com
and visit www.janeAnne.com
