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"Guiding
Clients in Protecting Their Most Important Assets: Family, Property
& Business"
CLOSINGS
FAQS:
What should I bring with me to the closing?
Buyers:
Buyers are responsible for bringing to closing anything that has
been specially requested of them by the lender or closing attorney
(such as original copies of bank statements or insurance), plus
a picture ID and sufficient funds to close. At times, buyers
may be asked to bring their social security cards.
Sellers:
Prior to closing, Sellers will be asked to provide social security
number, forwarding address and payoff information about any mortgages
that must be paid off through closing. At times, issues arise
due to the title examination that Seller may need to help resolve.
At closing, Seller must bring picture ID and any documentation
required by the contract or requested by the closing attorney
(such an original Power of Attorney). Seller should bring keys
and other entry devices, including garage door openers, to give
to Buyer at closing. Sellers, or their real estate agents, are
often responsible for bringing original termite letters to closing.
Per the contract, a Seller may also provide a home warranty at
closing. Beyond that, many sellers opt to bring information about
the homeowners’ association and the property’s appliances and
systems, or they may leave information about these things at the
property for Buyer to review later. (top)
Can I write a personal check for the funds needed to close?
To
control risk, most closing attorneys will accept only a very limited
amount of money in the form of a personal check. And, Georgia
law absolutely prohibits closing attorneys from taking more than
$5000 in personal funds. Therefore, the lender will let you know
– and the closing attorney will reinforce it – that you must get
either a cashier’s or certified check for the amount needed to
close. Our firm's policy is that you may only write a personal
check for funds less than $500. If you aren’t told an exact
amount prior to closing, the best practice is to get a cashier’s
or certified check in the estimated amount needed (made payable
to oneself), then bring your personal checkbook to closing to
make up the relatively small difference. If your cashier’s or
certified check amount is greater than the amount needed to close,
you will receive a refund at closing. (top)
What types of documents do buyers have to sign?
Most
buyers obtain loans to purchase property and have to sign a substantial
number of loan documents at closing. The good news is that virtually
all these documents are on forms that are universally used – some
are mandated by state and federal law while others are a product
of lending requirements and customs. And, they tend to be straightforward
and easily understandable, especially with your closing attorney’s
explanations of them. (top)
What types of documents do sellers have to sign?
Sellers can anticipate signing relatively few documents at closing.
Someone selling property can count on signing the Settlement Statement
and other documents pertaining to the property’s title and to
tax matters. (top)
How long will the closing last?
Most of the hard work is done prior to closing – finding a property,
negotiating a contract and fulfilling contract obligations such
as obtaining a loan. As a result, the closing itself is fairly
easy. The firm prides itself on providing smooth and efficient
closings, therefore, most closings are finished within an hour
and some in much less time than that. The duration of closing
is largely dictated by the number of documents that the lender
requires its borrower to sign and the amount of discussion the
parties wish to engage in. There are also some lenders that require
certain documents to be faxed to them after the signing to provide
the firm with the authorization to disburse funds. Occasionally,
there is a problem of some sort with the loan or with an unresolved
contract issue, in which case the closing can take longer. (top)
Will I be given dollar figures in advance of closing?
Parties often receive figures prior to closing in the form of
a preliminary HUD-1 Settlement Statement. The lender and closing
attorney prefer that the parties review the HUD-1 well in advance
of closing. Because preparation of the HUD-1 is dependent on a
lot of detailed information being finalized and verified by both
the lender and closing attorney, sometimes there is not enough
time for a thorough review of the HUD-1 prior to closing. When
that happens, the agent and lender will assist the buyer by estimating
the amount needed to close, and the listing agent will assist
the seller by estimating sale proceeds. (top)
Should buyers purchase owner’s title insurance?
Attorneys and other real estate professionals recommend that buyers
purchase owner’s title insurance. An owner’s title insurance policy
protects the property owner by paying loss that arises due to
covered title issues and by paying costs and fees if title needs
to be defended against covered claims. While the closing attorney
will do an expert title examination, there are many undetectable
title issues that can cause financial loss and heartache. Today,
the best title insurance policy available on the market is the
“enhanced” policy with greatly expanded coverage over the standard
owner’s title insurance policy.
All lenders
require that the closing costs for the loan include a title insurance
policy to protect them against any such title claims. Property
owners, though, are not protected by the lender’s policy; they
have the option at closing of buying an owner’s title insurance
policy that will give them the same kind of protection. Most buyers
purchase owner’s title insurance; the one-time premium in Georgia
is quite reasonable and buys a lot of security in addition to
practical coverage against loss and costs due to title claims
that are an unwelcome risk of property ownership. (top)
 The
Attorneys at Barlay
Law Group LLC assist
clients with Estate
Planning, Wills, Trusts, Powers of Attorney, Advance Directives,
Probate and Estate Administration, Residential
Real Estate,
Commercial Real Estate, and Business
Law in Conyers, Georgia as well as Covington, Mansfield, Newborn,
Oxford, Porterdale, Decatur, Lithonia, Avondale Estates, Pine
Lake, Chamblee, Doraville, Stone Mountain, Clarkston,
Social Circle, Loganville, Monroe, Walnut Grove, Jersey, Good
Hope, Between, McDonough,
Stockbridge, Hampton, Locust Grove, Lilburn, Norcross, Snellville
in Rockdale County, Newton County, DeKalb County, Walton County,
Henry County and Gwinnett County.
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