BUYER’S GENERAL CLOSING INFORMATION
In connection with your upcoming real estate purchase, please note the following basic information which is provided in order to facilitate a smooth closing:
Lender and Financing Contingency: Please make sure to fully review your contract regarding your financing contingency and lender application time frames. We expect that you will be certain to timely obtain a written loan commitment or will otherwise obtain from the Seller a written and signed extension of the financing contingency.
Property Insurance: Before your closing, you will need to select an insurance agent and obtain and pay for an insurance binder on the property you are purchasing. Please make sure this binder is issued to you as the owner and, if applicable, to the mortgage lender. You may need Hazard, Windstorm, and/or Flood insurance coverage. Your insurance agent will need to know the amount of coverage you are obtaining and the amount of coverage the mortgage lender will need along with the mortgage lender’s mortgagee clause (naming the loss payee). Once you have the binder coverage, you will need to provide proof of insurance and payment thereof to the mortgage lender and a copy to us in advance of closing.
In the event the property you are purchasing is a condominium, the structure of the building may be covered by the Association for fire and other hazards. You may need to furnish the mortgage lender with evidence of this master insurance policy. However, the master policy does not cover the contents of the interior of the unit. Therefore, you may wish to consider obtaining a Condominium Owner’s Insurance Policy. Some lenders require this coverage as well. Obtaining an insurance quote, selecting the agent and the coverage should take place early on in the transaction. Waiting can delay the lender’s closing package and impact the timing of your closing.
Survey of the Property: Before the closing, if requested by you or your lender, our office will order a survey of the property you are purchasing. In some instances, the Seller may have a sufficient and current survey that can be used. The survey will be reviewed with you at the closing. If you are buying a property with cash, please discuss the importance of the survey with our staff so you will have the appropriate title insurance coverage. This does not apply to condominium units. The buyer is responsible for the cost of the survey.
Shoreline Property and Flood Zone: If the property you are purchasing is in a flood zone, our office will order an Elevation Certificate at the same time we order the survey. In some instances, the Seller may have a sufficient elevation certificate that can be used. This Certificate will be requested from your insurance agent when obtaining a quote for your flood insurance binder. Please let us know the Insurance agency issuing your insurance, so we may fax the completed Elevation Certificate to them on your behalf. If your property borders water (bay, coast, or lake), a survey should include information regarding the applicable rights to submerged land. Further, your due diligence during the Inspection Period must include rights and interests in and to a dock, fishing pier, access to the water, and/or the possibilities of same. The property you are purchasing may be subject to governmental restrictions affecting the design, construction and repair of structures on the property and you should obtain an elevation certificate from the surveyor within the time frame authorized in the Contract to ascertain whether existing structures conform with current FEMA requirements. Also, you should verify that all improvements on the property, as well as, seawalls, or structural additions have been properly permitted when constructed, and comply with applicable zoning and building regulations.
Homeowners and Condominium Associations. You should review any applicable deed restrictions and covenants for all associations governing the property, as well as make all of the necessary determinations with the appropriate governmental agencies and utility companies that the property is suitable and properly zoned for your intended use, that there is adequate ingress and egress access, and that utility services are available. If the property you are purchasing. If the property you are purchasing is a condominium, you should review and understand all financial matters and restrictions pertaining to the Condominium Association. You must complete any applications necessary to obtain approval for your purchase, if required. If the association approval is not received prior to closing, we will not be permitted to close the purchase until such approval is received.
Property Inspections: All professional inspections performed on the property must be completed within the inspection period provided for in your contract. In addition to the common "home inspection" that most people are familiar with, we recommend that you also inspect the property as to the boundaries, any easements that run over or with the property, the location of a well and/or septic, if any, and the possibility of open building permits. We will assume you are satisfied with the condition of the property as of the date of closing. If you wish to have a termite inspection, or any other inspection, you should make sure that you complete the inspections AND put the Seller on written notice of any property defects within the inspection period specified in the contract.
Municipal Inspections and Building Permits (Inspection Period): It is important that you complete these inspections with regard to the status of municipal compliance, including, but not limited to governmental building, environmental and safety codes, restrictions or requirements, building code, unrecorded liens, code enforcement, open or expired permits, etc. within the inspection period provided for in your contract. Note: These matters are not covered by your title insurance policy. We will run a search (and the appropriate party will be responsible for the expense) as soon we obtain a contract in our office. It is important to forward to our office the contracts as soon as possible so that we may timely obtain the results of these searches.
Closing Procedures: If you will not be available to attend closing, arrangements can be made to close by mail or overnight delivery. Please advise the closing attorney well in advance of closing how you wish to close adn the best contact information for you. Be prepared to bring two (2) unexpired forms of identification to closing, one having a photograph. Under RESPA, you are entitled to inspect the settlement statement in our office one business day prior to closing. We are required to give you the information that is available at that time. We certainly will make every effort to let you know your closing costs as far in advance as possible, and our office should be in a position to give you guidance over the phone if you call a day or two prior to closing. If any amount is due from you at closing, you will need to wire transfer that amount to our trust account. WE ARE NOT PERMITTED TO ACCEPT PERSONAL OR CASHIER'S CHECKS FOR CLOSING.
We look forward to working with you and we value the opportunity to provide you with the best settlement service possible.