Transcript Real Estate Law, 8th Ed.

Real Estate Law, 8th Ed.
by Marianne M. Jennings
Chapter 16
Closing the Deal
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Requirements for
Escrow Instructions
1. Name of the agent, third party, or
depository
2. Names of the buyer (buyers) and
seller (sellers) and their proper
designation (partnership,
corporation, married couple, single
person, and so on)
3. Legal description of the property to
be transferred
(Continued on next slide)
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Requirements for
Escrow Instructions
4. Purchase price of the property
5. Conditions of transfer and payment
6. Allocation of expenses, costs,
insurance, taxes, assessments, and
so on
7. Signatures of the buyer and seller
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Fees in Escrow
1. Escrow fee
2. Fees for title search, title abstract,
title insurance, and attorneys’ work
associated with such
3. Recording fees for the deed,
mortgage, deed of trust, and any
other documents required
4. Mortgage transfer or release fees
(Continued on next slide)
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Fees in Escrow
5.
6.
7.
8.
9.
10.
Loan origination fees
Termite inspection report
Appraisal or survey fees
Credit report fees
Loan discount points
Other attorneys’ fees such as for
drafting documents
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Requirements for Closing
 Underlying purchase contract
 Deposit of deed with agent
 Valid escrow instructions
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Closing Costs
1. Escrow fee
2. Fees for title search, title abstract,
title insurance, and attorneys’ work
associated with such
3. Recording fees for the deed,
mortgage, deed of trust, and any
other documents required
4. Mortgage transfer or release fees
(Continued on next slide)
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Closing Costs
5.
6.
7.
8.
9.
10.
Loan origination fees
Termite inspection report
Appraisal or survey fees
Credit report fees
Loan discount points
Other attorneys’ fees such as for
drafting documents
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Delivery Requirements by
Seller for Closing
1. Title documents: abstract, opinion, and
insurance
2. Most recent tax bill
3. Insurance policies
4. Plans and specifications for original
construction and modifications
5. Warranties on any appliances, heating
systems, and so on
(Continued on next slide)
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Delivery Requirements by
Seller for Closing
6.
Uniform Commercial Code (UCC) bulk sale
affidavit for business transfer (where
applicable—Article 6 on Bulk Sales has
been repealed in some states)
7. Soil, termite, and other property condition
reports, including reports from
environmental agencies
8. Keys
9. Notes, mortgages, deeds of trust, UCC
Article 9 security agreements and financing
statements
10. List of tenants and copies of leases
11. Building code inspection and compliance
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Delivery Requirements for
Escrow for Buyer
1. Earnest money check
2. Loan commitment
3. List of defects to be remedied prior
to closing
4. Corporate authorization if corporate
buyer is involved
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Delivery Requirements for
Lender for Escrow
1. Mortgage, deed of trust, and promissory
note
2. Truth-in-lending statement (see Chapter 15)
3. Real Estate Settlement Procedures Act
(RESPA) statement (see later for
discussion)
4. Required forms if Federal Housing
Administration (FHA) or Veterans
Administration (VA) loan is availed
5. Required inspections if FHA or VA loan is
involved
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Requirements for Escrow
Instructions
1. Name of the agent, third party, or depository
2. Names of the buyer (buyers) and seller (sellers)
and their proper designation (partnership,
corporation, married couple, single person, and
so on)
3. Legal description of the property to be
transferred
4. Purchase price of the property
5. Conditions of transfer and payment
6. Allocation of expenses, costs, insurance,
taxes, assessments, and so on
7. Signatures of the buyer and seller
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Purposes of RESPA
1. To provide more effective advance
disclosure to home buyers and home
sellers of settlement costs.
2. To eliminate kickback or referral fees that
tend to increase the costs of settlement
services.
3. To reduce the amounts buyers are required
to pay into escrow for taxes and insurance.
4. To reform local record keeping and land
title information.
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