Archive for May, 2009

The Buyer’s Closing Day

Kathy Riggs May 11th, 2009

Welcome back to the continuing journey through a real estate transaction through the buyer’s eyes. In the last few weeks, the buyer has found out his/her price range, contacted a Realtor, looked at houses, made an offer and had a home inspection.
The attorney has researched the title, the appraisal has been done and the lender has completed the file.
We are ready to close!. Hip, hip hooray!
If you haven’t been in the real estate market for quite some time, did you realize how many people were involved in the purchase of home? It is the real estate agent’s job to stay on top of the transaction and make it less stressful for the buyers and sellers. Agents take this trip through every transaction and can anticipate problems that may arise and often help make the ride much smoother. (Makes you wonder why someone would go FSBO, doesn’t it!)
Back to our journey.
The “closing” takes place at the attorney of the buyer’s choice. The seller is responsible for having the deed prepared and that can be done by the same attorney or the seller may choose someone else.
The buyer’s attorney, or closing agent as they are sometimes called, will receive a loan package from the lender with all the documents the seller must sign. A settlement statement, called a HUD, is prepared that accounts for all proceeds and disbursements. All funds – the amount the buyer is borrowing, the down payment, closing costs and the original earnest money – are deposited into the attorney’s account and all disbursements (i.e. payoff of the seller’s loan, recording fees, buyer’s insurance) are paid from the attorney’s account. Hopefully, the loan package arrives a couple of days before closing and the buyer has ample time to review the statement with the lender and the real estate agent. The HUD will show the exact amount the buyer needs to bring to closing.
The buyer should plan to spend 1-1 1/2 hours at the closing. The attorney will review the HUD with the buyer and all other documents the buyer signs. Once the buyer and attorney have completed the paperwork, the deed from the seller to the buyer will be taken to the Register of Deeds to be recorded. And at that point, the buyer becomes a “homeowner.”
on the lighter side
Q. What is a house warming? A. The final call for those that didn’t send a wedding present.
SHAMELESS PLUG
Ready to start looking for your dream home? Call me at 252-939-2432 or email me at kriggs@kathyriggs.com

The Attorney’s Role

Kathy Riggs May 3rd, 2009

Welcome back to my blog taking you on a real esate transaction as if we were riding along beside the buyer. And we are almost to our destination!
In my previous post I commented about two tasks that are handled between contract signing and closing – the appraisal and the title search. Both are handled by professionals trained to do those specific jobs and although real estate agents know how important they are to the transaction, they have no role in performing these tasks. My previous post focused on the appraisal.
Now let’s look at the title search.
The title search is performed by a real esate attorney to determine that the title to the property can be transferred free and clear of encumbrances. Taking title to property means having actual lawful ownership of property. “Title” is a concept, not a document. The document giving someone ownership in real property is the deed.
To determine if the title is free and clear, the attorney will check records at the county courthouse in which the property is found. The buyer will pay a fee for the attorney to perform the title search and a one-time fee for title insurance. This insurance protects the buyer if anyone ever makes claim on the property.
And at this point, I will direct anyone who has questions about title to real property to contact their real estate attorney. Suffice it to say, the title search is very important and the one-time fee for title insurance is a smaill investment to secure the buyer’s interest in the property.
on the lighter side
Did you hear about Robin Hood’s house? It has a little John.
SHAMELESS PLUG
Join me for an open house from 4-7 p.m. Wednesday, May at 2330 Stallings Drive, Kinston NC. The interior has just been painted and is ready for a new owner. Call me at 252-939-2432 or email me at kriggs@kathyriggs.com

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