After a long battle with research, applications, real estate agents, negotiations, and etc., the purchase contract has been finalized and you’re finally ready to close the deal. You will want to make sure that all documents and disclosures are in order and that nothing has been left out. We often see that all the formalities have been taken care of, but there is one page that was not signed, which could effect the binding contract.
Depending on what the contract states, your Florida Closing Attorney or Title Company will conduct a title search in order to secure the title and insure that there are no liens or “clouds” on the property upon the transfer of the Property. Lenders will usually require this anyway if applying for a home loan or re-financing.
As far as closing costs go, if you are financing your home, your lender will provide a good faith estimate which identifies all costs involved. Some expenses related to the mortgage or property itself are either prepaid or paid at closing, which must be prorated between the buyer, seller, and lenders at the closing. These expenses can include real estate taxes, utility costs, and condo assessments that are prorated between the parties. Be sure to clarify between parties what these pro-rations will be at the closing. Many times we see fees charged to the wrong party, make sure to consult your Florida Closing Attorney.
The current document that’s used to list all itemized payments and credits of the buyer-seller transaction is the HUD-1 statement. However, beginning in October of this year a standardized Closing Disclosure document will be implemented which will usually be provided by the lender for the closing. Currently, the most important documents to review during a closing are the Good Faith Estimate, HUD-1, and TILA/RESPA disclosure (Truth In Lending Act/Real Estate Settlement Procedures Act). However, these will be replaced by the Loan Estimate, Closing Disclosure, and Closing Settlement documents. Stay tuned for more information on this!
What should you bring and what you should ask for at closing?
Make sure you bring two forms of photo identification. The closing agents involved usually require a driver’s license or some other form of government identification. Make sure that all keys and automatic garage door openers are transferred to the purchasing party (this includes mailbox, utility shed, basement keys, garage door openers, etc.). Handing over the keys to the buyer at the end of a closing is known as “delivering possession of the property to the buyer.” Which means the Buyer gets their keys and Seller gets paid for his home.
If you have any questions or concerns regarding the closing process, what is needed at a closing, or what information should be disclosed to you, please contact your Florida Real Estate Attorney today!