Knowing 6 important steps will make closing you real estate transaction a more manageable endeavor. They include: file creation, information gathering, document preparation, the closing, disbursement/recording/transmittal of the closing package, and the final close out. One of the early considerations settled as a result of this detailed process is that of conflicts of interests. It is imperative that the law firm know in advance that there will be no pending problems so that they can ensure the best representation possible. Following this is a series of very straightforward tasks that must be handled, from documents to disbursements of monetary considerations to final signatures. Upon completion of this process, the final file can be adequately stored for safe-keeping.
Upon completing the closing process, it is wise to make use of a closing checklist to ensure that every detail is covered and accounted for. The checklist, itself, is composed of general headings the main steps to follow. Each section to be checked off is important to the one following it, so be advised of the order in which you wish to accomplish each. Aside from its increasingly detailed descriptions of the guidelines to follow, an additional “pre-closing procedures” section also resides on this list. This is composed of reviews of titles, loans, liens, and the survey performed on the property. Rechecking the list will provide the security you need while approaching its completion.
Contact with Seller, Purchaser, and Broker
It is the responsibility of the buyer to acquire the appropriate means toward the ongoing closing process. They must make sure they ordered the survey, title examination, hazard/fire insurance, as well as obtained satisfaction of loans and liens. Though all are for their benefit, hazard insurance is probably most important so as to guarantee that, despite any occurrence following the closing, their property will be covered, and they will not be left vulnerable. When directly dealing with the acquisition of the satisfaction of loans and liens, it is equally important to make sure to document every communication with the lender. This is vital to ensuring the validity of all information required.
Review of Loan Commitment
Though it appears as a mere contract, you might be surprised to find out just how complicated and important a loan commitment can be. There are a litany of terms and specifications that it demands of the parties involved. The lender wishes to ensure that the borrower know of all liability involved. Within this contract, the lender even goes as far as to require and escrow account to be created in conjunction with them. They see this practice as a way to monitor the payments of the buyer. In this way, any lack or delay will automatically alert them in the direction of placing the loan in default sooner than later. Despite assisting the buyer in their real estate transaction the loan company uses its loan commitment to protect its interests just as much. Therefore, be sure to read and understand the various terms that it comprises.
New Technology for Document Production
Increasing movement when it comes to real estate has led to a growing need for more efficient means of document production. This is due to the fact that paperwork is probably one of the most significant and weighty aspects of the real estate transaction process. One of the technological advances today is that of document assembly programs. Essentially, they turn a one-time manual session of information input into fruitful aftereffects. This is because the program only needs one template in order to continue on and manipulate it in any way possible, thus, making it much quicker to reproduce and create subsequent documents and forms. This, along with the already widely-used printers and scanners, contribute to lower legal costs and faster turnarounds.