Tip 39-2010: Listing Realtors & Information from the Seller

There are various documents that the Seller should have which will be helpful in ensuring a smooth closing.  Most of these documents can easily be obtained from the Seller beginning with the signing of the listing agreement.  The information which the Seller can provide to assist in the closing is as follows:

1. Copy of  prior title insurance binder (owner’s policy would be preferable, but any title binder will help).

2. Copy of a physical survey (shows all improvements) of the property to be sold.  If not available, any boundary plat would be helpful.

3. Current copy of payoff statements of all outstanding deeds of trust.  (Remember that home equity loans and lines of credit need payoff statements.)  The payoff statements provide loan information which is helpful in obtaining subsequent payoffs (correct loan number and lender contact information.)  Also, these statements will help determine if the proposed listing price will result in a short sale.

If any of the above information is not available at the listing, continue to ask the Seller to search their records for copies of the above documents.  Many subsequent problems with the title and/or survey can be avoided if the prior title binder and survey are provided to the Purchaser.

Please call me (Charlottesville Attorney) at 434-951-0858 if you have questions or need legal advice.

William D. Tucker, III

Tucker Griffin Barnes P.C.

Charlottesville, VA

Tucker@TGBlaw.com

www.TGBlaw.com

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Tip 28-2010: Banks, Certified Checks & Wires

For many years, it has been our local practice to require cashiers checks for all closings. Recently, we have learned the Federal Reserve has been putting a random hold on certain cashiers checks, thus causing our local banks to sometimes not give immediate credit. This Federal Reserve policy is due to the recent increase in counterfeit cashiers checks. One way to avoid the difficulties these holds can cause is to require bank wires instead of cashiers checks.

For example, the Buyer will wire to his/her attorney the necessary funds for the purchase of the real estate. (Banks are already wiring the loan proceeds to the Buyer’s attorney.) Then the Buyer’s attorney will have immediate access to the closing funds in order to close with the Seller’s attorney without any delay or hold on the funds by the Federal Reserve. (Local practices may evolve to address this issue.)

For now, please advise your buyers that they should arrange with their banks to be able to wire to the settlement attorney the necessary funds to close. As long as the Buyers arrange for the wire ahead of time, this new practice may actually be easier for the Buyers, as they do not need to rush to their bank to get a cashiers check. Also, as the exact amount needed to close may not be available until just before closing, the final amount of the bank wire can be adjusted accordingly.

Please contact me if you have any questions.
 
William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia
434-973-7474
Tucker@TGBlaw.com
http://www.tgblaw.com/
http://www.tgblaw.blogspot.com/

Tip 8-2010: Pay Off Statment

It is advisable that the listing realtor obtain “current” pay off statements from the Seller. These statements should be obtained at the initial listing of the property. With these current pay off statements, the realtor can determine whether the estimated sale price will result in a short sale, and whether there are any defaults with the monthly payments (possible foreclosure).

Be sure that the Seller provides statements on all outstanding mortgages (first, seconds and/or home equity loans). Some Sellers do not understand that their home equity loan is really a mortgage.

Obtaining the current pay off statements should be a part of the realtors listing checklist.

Please contact me if you have any questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia
434-973-7474
Tucker@TGBlaw.com
http://www.tgblaw.com/
http://www.tgblaw.blogspot.com/