The actual closing process
is regulated by state law and local practices which protect both the Buyer and
the Seller. In the vast majority of the Commonwealth, the Purchaser's settlement
attorney or settlement agent disburses all the proceeds from the transaction.
The Seller is basically unrepresented.
In Central
Virginia, our local practice results in actual representation for the
Seller. As a result, the Seller's attorney or Settlement Company
disburses the Seller's proceeds including pay off of the mortgage and real
estate commission. Our local bar has procedures in place which allow this to
occur while still protecting the Purchaser.
Unfortunately, whenever a
lawyer or settlement company from outside our area is hired to represent the
Purchaser, a major issue occurs. The Purchaser's non local settlement agent,
unfamiliar with our practices, insists on the closing occurring his way. This
may mean that someone unfamiliar with our local practice demands to record and
disburse all the proceeds. Not only is there no protection for the Seller, but
the use of an out of the area settlement company may result in several days
delay in recording the Deed and paying the mortgage and realtor. (It makes no
sense for a Northern Virginia title company to insist that the Purchaser close
in Fairfax, then delays two days to record and finally days later the mortgage
is paid off).
Accordingly, there are a
number or excellent real estate attorneys and settlement companies in the
Central Virginia market. When the Purchaser mentions the desire to use a
non-local settlement agent, strongly discourage this practice from happening.
The time involved and problems caused in requiring the settlement agent to
follow our local practices is not worth all the problems caused.
P.S. This Tucker's tip is
not meant as a self-advertisement but is really just trying to create solutions
for a smooth closing. Thanks.
William D. Tucker, III
Tucker Griffin Barnes
Charlottesville, VA
434-973-7474
www.TGBLaw.com
Inquire@TGBLaw.com
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