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Residential Purchase Contract

It's important to have an attorney review the contract for Purchase and Sale. The contract contains important terms such as the purchase price, escrow amount and due date, inspection date, closing costs, etc. An attorney at the title company can review the contract prior to execution to make sure the terms and conditions in the contract are legal, proper, and in the clients best interest. 

Residential Pre-Closing

This stage represents all of the back work before all of the parties arrive to the goal of the closing day!

-Once the contract has been fully executed, an escrow deposit needs to be made complying with the timeframe in the contract. Upon receipt of the escrow deposit and additional deposit if in the contract, the title company will send out the escrow letter(s). 

-There is usually also an inspection period even if the property is cash, unless waived by the buyer(s). The financing contingency is also outlined in the contract if the purchase is not a cash transaction. 

-An appraisal is ordered if the buyer(s) will be obtaining financing. Most title companies typically wait for the inspection period and the appraisal results to come in before they will order the title commitment search. 

-It is highly recommended that the title company use their underwriter to do their title searches as their underwriter is insuring the title. The requirements on B-I of the title commitments are requirements that need to be meet and cleared prior to closing and after the closing. IE pay current property tax bill collected at closing, payoff the sellers mortgage, etc. 

-Items on the commitment are ordered such as payoff(s), municipal lien search, a survey if the property is a residential lot and there is financing, and any estoppel(s) needed if there are any association(s) affiliated with the property. 

-Cash buyers have the right to waive the right to a survey for a residential lot and then the owner's title insurance policy will contain the standard survey exceptions. A survey is a very useful tool to see any easements, encroachments, etc., on the lot and that is why most conventional lenders will require a survey. 

-If there is financing, the title company will receive a title request which details all of the title documents that the lender will require. 

-Once financing has been approved and a closing date set, the buyer(s) will be given a lender approved Closing Disclosure or HUD with all of the costs associated with purchasing the property and will wire the cash to close, normally at least one day before the closing. 

-A cash deal is much simpler and just requires a few documents for all parties to sign. 

Residential Post Closing

After the closing has taken place. This stage involves timely disbursing all funds to the appropriate parties. 

-Some lenders require funding numbers so in these situations the buyer(s) will wait to get the keys until a funding number is obtained and the seller(s) proceeds from the sale are wired. 

-The relevant documents are recorded.

-Copies of the relevant executed documents are provided to all parties.

-Policies are issued and mailed out to the appropriate parties.