RE07RC01: Closing and Settlement

RE07RC01: Closing and Settlement

1. Role of the Closing/Settlement in the Real Estate Cycle (Listing, Showing, Offer and Acceptance, Purchase & Sale Agreement, Financing, Title Search, Closing/Settlement)
2. Sellers Closing Cost and Responsibilities:
   1.   A.        Deed
   2.   B.        Real Estate commission
   3.   C.        Proration of Water, Sewer & Taxes (math examples)
   4.   D.        Recording fees
   5.   E.        Sellers Attorney fees
   6.   F.        Mortgage payoff
   7.   G.        UFFI Certificate
   8.   H.        Smoke detector
   9.     I.        Certificate of Title
   10.    J.        Excise Tax Stamps
   11.   K.        Title 5
   12.   L.        Lead Paint forms
   13.  M.        Municipal Lien Certificate (MLC)
       1.          1.        Condo:
          1.                 a.        Condo Documents – Master Deed By-Laws, Rules and Regulations
          2.                 b.        (d) Certificate
          3.                 c.        Condo Reserve Fund
3. Buyers Closing Costs and Responsibilities:
   1.   A.        Inspection costs
   2.   B.        Bank application fee
   3.   C.        Bank Attorney (Title Search)
   4.   D.        Plot plan
   5.   E.        Financing points
   6.   F.        Fuel adjustment
   7.   G.        Buyers Attorney fees
   8.   H.        Title insurance
   9.     I.        Private Mortgage Insurance (P.M.I.) Tax escrow
   10.    J.        Home owners insurance
   11.   K.        UFFI certificate
   12.   L.        Recording fees
       1.          1.        Condo:
          1.                 a.        Master insurance policy
          2.                 b.        Advance condo fee
          3.                 c.        Condo reserve fund (transfer or assign)
          4.                 d.        Check to make sure pets OK etc. in by-laws
4. Documents at Closing:
   1.   A.        Deed
   2.   B.        Mortgage Deed
   3.   C.        Mortgage Note
   4.   D.        Mortgage Discharge
   5.   E.        Municipal liens certificate
   6.   F.        Attorney certification of title
   7.   G.        RESPA Settlement Statement
   8.   H.        UFFI Statement
   9.     I.        Plot plan
   10.    J.        Insurance Policy/Binder
   11.   K.        Lead Paint certification
   12.   L.        Truth-In-Lending disclosure
   13.  M.        Affidavit of Purchase & Vendor
   14.   N.        W – 9’s
   15.   O.        Application form
   16.   P.        Commitment letter
   17.   Q.        Title insurance
       1.          1.        For Probate Properties – and Death Certificate of Power of Attorney and Power to Sell
          1.                 a.        Condo:
          2.                 b.        (d) Certificate
5. Settlement Statement:
   1.   A.        Distribution of a completed RESPA Settlement Statement is
   2.   B.        recommended for class/case discussion
6. Review Broker’s role and impact on the closing process at the following
   1.   A.        stages:
      1.          1.        Listing
      2.          2.        Showing
      3.          3.        Purchase andSaleAgreement
      4.          4.        Bank Application and Approval
      5.          5.        Bank Attorney [Title Search]
      6.          6.        Scheduling of closing Re – other property closing Purchase andSaledate; Coordination of all Parties, Occupancy

Suggested Handouts:

Completed model closing Attorney package including RESPA Settlement Statement HUD-1 Form