Tag Archives: Closings

Writing a Contract? Get Out Your Calendar

Posted on March 10, 2021 | Leave a comment

The vast majority of problems, conflicts and stress we see in the closing process are with closings that are scheduled on Fridays or the last three days of the month.

That is true all year but is especially true in the spring and summer when the real estate business in our market is busiest.

2021’s busy season started early, so everyone needs to make sure when putting dates and expectations in their contracts, they plan for success by avoiding those problem days.

Everything works back from the closing date, and for a lot of reasons, people like to close on those no-go days. As a result, lenders, surveyors, home inspectors – all your partners in your real estate business – are trying to work through an uneven pipeline demand. This creates bottlenecks; bottlenecks cause unexpected delays and last-minute surprises no one wants.

You can help them, your customers, and yourself by trying to schedule mid-week closings and closings near the 10th and 20th of the month. There will be fewer opportunities for delay, and a better chance for that smooth and successful real estate experience that generates years of referral business for you.

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Mail Away? If All Else Fails, Follow the Directions

Posted on May 27, 2020 | Leave a comment

In response to COVID-19, we’ve seen a slight uptick in “mail aways.” Buyer and seller mail aways are a normal part of the process and can be transparent to the transaction timeline as long as they are planned for early. Two things are essential for success; following directions and proper notarization.

Every mail away we send will include detailed directions of what needs to be signed and what needs to be notarized, with critical areas highlighted. Whenever possible, we will also give verbal instructions. We keep a copy of every package we send, so if needed, we will happily go over it with buyers and sellers when they receive it to help clarify questions they may have. The directions included in the mail away, if followed, will make sure everything will flow well and no delays will take place.

Especially going out of state, following Florida notary requirements is essential. Not all states have the same requirements and most notaries know this, but some may not. Make sure out of state notaries read and follow the instructions, even if they say they are familiar with Florida requirements.

Most buyers and sellers prefer to choose their own notary, but if they need help, we will be more than happy to assist them in finding one. Just let us know!

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Remote Online Notarization

Posted on January 3, 2020 | Leave a comment

remoteonlinenotarizationWith the New Year, Florida’s new Remote Online Notarization (RON) law is going into effect. This is the next step along the path toward e-closings.

RON allows parties in real-time audio-visual communication to actively participate in a closing by electronically signing documents that require notarization.

The RON licensed notary must be physically present in Florida, but the signatory can be located virtually anywhere provided they have a U.S. social security number.

Though RON is “a go” in FL, it is not ready to start being used right away.

The key is that the Florida Department of State is still in the process of promulgating rules, finalizing the application process, and generally preparing Florida for RON.

Once that is done, the next challenge will be the approval of a proper platform that provides the statutorily required identity-proofing, credential analysis, and a secure repository to store required RON electronic records and journals.

Once the State and Industry have everything in line to enable RON, we will let you know.

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Six Steps to a Closing

Posted on November 14, 2019 | Leave a comment

Signing_Warranty_DeedEvery closing has its own special path to take, but both the easy and quick ones and the difficult and drawn-out ones all have the same six major milestones.

When done right, buyer and sellers will only have to worry about the last two, but for that to happen – everyone needs to work together for the first four.

1. Opening a file/Ordering Title: We receive a listing agreement or purchase and sale agreement. We notify our underwriter and create a file here.

2. Title Work begins as Examiners and Abstractors conduct title search including history of the property, owners of record, and liens of record on the title.

3. A Title Commitment is issued for the property and Processors work on pre-closing requirements such as ordering payoffs, Estoppel Letters, coordinating with lenders and surveyors to clear title.
4. Lender documents are received and closing documents produced. Closing date and location agreed by all parties.

5. Closing occurs or all mail-aways received. Funding executed.

6. Closing documents recorded, as required, and title insurance policies are issued.

Always remember, if you have a customer who has lost their closing documents, we have electronic copies of the closing packages on file going back to well over a decade. At no cost, we can get a copy for them – just let us know.

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A HUD Closing – Not Your Normal Closing Process

Posted on November 1, 2018 | Leave a comment

HUD-HEADER-opensansAre you working with a buyer who is looking at purchasing a HUD owned property?

If so, there are some important considerations to keep in mind as you work your way to the closing table. Regardless of what the contract may or may not say, HUD has its own rules that everyone has to follow.

Here are the top-3 HUD-specific requirements that cause the most confusion during the closing process:
– HUD requires 5 full business days before closing to review all documents for approval. Expect HUD to utilize the entire 5 days before making changes to the ALTA Settlement Statement or issuing approval. They will not make exceptions. Even as we notify the buyer’s lender at the beginning of the process of HUD’s guidance timeline requirements, lenders without regular experience with HUD closings may have trouble meeting tight timelines.
– HUD does not pay any of the closing costs. Even if they are your typical customary seller costs, HUD expects the buyer to pay. They will only pay any outstanding taxes, HOA dues and prorations. From time to time they may issue a seller concession, depending on the nature of the contract.
– HUD does not allow last minute changes to the contract, even something as simple as a buyer’s address, or changing their name to read on the deed such as a middle initial, etc. It either has to stay as written or there is a process that has to be followed to make this change. Last minute changes almost always result in closing delays up to a week, sometime more.

Remember, even if you are experienced with HUD purchases, your customer may not. Early on in the process, make sure they and their lender fully understand the unique requirements of a HUD purchase.

You can get a PDF of this title tip here.

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Posted in Buying, Distressed Property, Title Tip of the Week

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With the New Closing Rules, are you Asking the Right Questions?

Posted on November 9, 2015 | Leave a comment

Pulling-hair-out-300x219As mid-November is upon us, everyone should be familiar with the new Closing Disclosure/TRID rules that apply to all closings requiring a mortgage where that mortgage was “signed” after October 3rd.

The first of these new closings will be taking place over the next few weeks. At the minimum, real estate agents on both sides of the transaction should know from the Buyer’s lender the following:

1. How many days prior to closing does the lender require the settlement services provider to give them all fees and invoices that will need to be on the Closing Disclosures and Settlement Statement?
2. How is the Buyer’s Closing Disclosure going to be delivered to the Buyer?
3. What day are they going to initiate delivery?

The answers to those three questions will tell you if the lender will be able to make the proposed closing date, and do so in accordance with the new rules.

Important note: most lenders will not automatically share the Buyer’s Closing Disclosure with the Buyer’s Agent, and will not allow the Settlement Services Provider to share a copy either.

Also, remember that the Seller will have their own Closing Disclosure that will be provided by the Settlement Services Provider, who will also produce the Settlement Statement – the only document of the three that authorizes closing and the distribution of funds.

All the documents use the same data, so in almost all cases, a change in one will cause a change in all. Depending on the processes at the individual lender in question, even simple changes may take days. There is almost no room to, “make it happen.” Even more than before, this is a lender driven process.

You can get a PDF of this Title Tip here.

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Understanding Page-3 of the August 2015 Closing Disclosure

Posted on April 14, 2015 | Leave a comment

Third video in the series to get you ready for the new CFPB mandated Closing Disclosure effective August 2015.

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Posted in Settlement Services, Title Tip of the Week

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Death is Serious Business

Posted on December 30, 2013 | Leave a comment

5308_Grim_Reaper_300The Title Insurance industry in recent years has come back to the future.

If a Death Certificate was required for a closing, for many years you had to have an original or certified copy. In the last decade, some underwriters would allow a copy instead; that is no longer true.

In order to combat fraud and potential errors, underwriters have shifted back to the previous requirement for original Death Certificates. If during the course of progress to the closing table a Death Certificate will have to be provided, we will need to have an original.

For Listing Agents, make this part of your checklist. Some customers may not keep good records or have the records they need stored in an inconvenient location. By asking early for those documents that will be required for closing, you can prevent delays – or worse – have a deal blow up on you because you fell out of contract and the buyer walked as you were trying to get all required documents.

If you have any questions about Death Certificates, or would like for us to confirm that what you have is considered an original for underwriting purposes, send it along to your Processor and we will let you know.

Death Certificates may seem like an unusual topic right before the Christmas Holidays, but as all real estate professionals know when it comes to making a successful closing, every day of the year counts!

You can a get this update as a PDF here.

On behalf of everyone at Watson Title Services of N FL, we wish you and yours a great holiday season and an exceptionally successful New Year.

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