Jul 17, 2013

Tip 27-2013: Contracts and Addendums

The exchange and flow of information between all the parties in a real estate closing is extremely important to ensure a smooth, easy closing for the client. Included in the exchange of information is the contract with all the addendums. It is imperative that the settlement attorney receive a copy of the signed contract along with ALL addendums. If the copies are not legible due to faxing and/or multiple copying, please also send an unsigned readable copy as long as it has all the changes. We cannot stress enough the importance of distributing ALL the signed addendums to BOTH settlement attorneys. Closings can be delayed if the parties do not receive all the signed addendums. Errors can occur if the settlement agents do not know all the agreed upon credits.  

Errors can also occur if information on the contract does not match information on the loan application, particularly the Purchaser's name and the property address. The Purchaser's name needs to match exactly the name on the loan application, including the spelling, middle initials, suffix, etc. Lenders and their underwriters are reviewing items carefully. Accordingly, everyone in the signing process (the realtor, lender, and settlement attorneys) should verify that the correct name and address is on all documents. Distributing copies of the contract and all addendums to everyone in the signing process will allow all the parties to look out for any items that may delay closing. 

P.S. Also be sure to send a Real Estate Commission Distribution Statement to the Settlement Attorneys.
Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.

William D. Tucker, III
Tucker Griffin Barnes
Charlottesville, VA

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