What is a Real Estate Closing?
A closing (also known as settlement) is the final step in executing a real estate transaction. The closing date is set during the negotiation phase, and is usually several weeks after the offer is formally accepted. On or before the closing date, the parties comply with the terms of the purchase contract, and ownership of the property is transferred from the seller to the buyer in exchange for an agreed upon compensation. Ownership is officially transferred when the Warranty Deed is filed at the office of the County Clerk of the county in which the property is located.

What is a title search and why do I need one?
A title search is a search of the public records to determine (1) if the seller has a saleable (often referred to as marketable) interest in the property and (2) if any liens exist on the property which need to be paid off at closing, such as mortgages, back taxes or other assessments. A search of the U.S. Treasury’s “Specially Designated Nationals and Blocked Persons List” is also performed as part of the title search.

What is title insurance?
Title insurance is indemnity insurance against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens. It is meant to protect an owner's or lender's financial interest in real property against loss due to title defects, liens or other title related matters. It will defend against a lawsuit attacking the title as it is insured, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided by the policy.

What are the different types of title insurance?
There are two types of title insurance policies. (1) The Owner’s Policy assures a purchaser that the title to the property is vested in that purchaser and that it is free from all defects, liens and encumbrances except those which are listed as exceptions in the policy or are excluded from the scope of the policy's coverage. It also covers losses and damages suffered if the title is unmarketable. The policy also provides coverage for loss if there is no right of access to the land. (2) The Lender’s Policy or Loan Policy is issued only to mortgage lenders. The basic elements of insurance they provide to the lender cover losses from the following matters:

Why does is cost so much and how long is my coverage?
The title insurance premium is regulated by the state. The rates may include discounts if title insurance is ordered within a specified time after the last policy issued or if the mortgage being insured is a refinance of an earlier mortgage. Coverage is for as long as you own the property.

What documents/information must I bring to the closing?
You will need to bring your driver’s license or another form of photo identification for Notary to confirm your identity. If money is owed, you will need to bring the certified funds via cashier’s check, money order or have the funds wired ahead of time.

What type of documents will I be signing?
The number and type of documents vary by the type of closing. Both parties will need to sign the settlement statement and a few closing documents to confirm that the terms of the contract have been satisfactorily complied with. If the purchaser is obtaining financing, his/her lender will require several loan documents to be executed at closing. Also, if a 1031 exchange service is used, additional documents will be required by that company to complete the corresponding transfer of funds.

Do I have to come to your office to sign documents?
Although we would enjoy meeting you in person, you are not required to close in our office. We can overnight the closing documents to you. Because at least one document will require a notary seal, we recommend you locate a local notary public before your closing date.

Can someone else sign for me?
Sometimes. You can execute a Power of Attorney form which states that you are permitting another person to sign on your behalf. If you are purchasing property and obtaining financing, your lender has to approve the use of the Power of Attorney before final loan documents can be created.

What is a 1031 Exchange and how can it benefit me?
IRS Code Section 1031 permits the deferral of capital gains and other taxes on the sale of property, provided certain conditions are met. Depending on the value of the property, this can be a significant savings at tax time. Generally, the proceeds from one sale are used to purchase a like-kind property; however, there are several different types of 1031 exchanges, so we recommend consulting a qualified 1031 exchange intermediary for details.

What is a Short Sale?
A short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor (borrower). This is typically negotiated through a bank's loss mitigation department. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender in exchange for a release of the lien created by the mortgage. In such instances, the lender would have the right to approve or disapprove a proposed sale and may, in some cases, still hold the mortgagor responsible for the outstanding balance of the loan. A short sale typically is executed to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing.

How can I avoid a Foreclosure?
A foreclosure is the legal process by which a bank, mortgage company, or other lien holder takes ownership of your home because you have failed to make your payments at the appointed time. The simple way to avoid foreclosure is to make your payments on time, but this is not always possible. The Department of Housing and Urban Development (HUD) has some helpful tips for avoiding foreclosure on their website (www.hud.gov/foreclosure), such as talking with your lender about options/assistance available; knowing your mortgage rights (what your loan documents say and Florida’s foreclosure laws); and contacting a HUD approved housing counselor for advice and assistance.

How do I qualify for a VA or FHA loan?
Both a VA loan and a FHA loan are secured by the federal government, which can allow for lower down payments, better interest rates, and/or better loan terms than a conventional loan. A VA loan is secured through the Department of Veterans Affairs and is only available to qualified veterans. A FHA loan is secured through the Federal Housing Administration and is open to everyone who qualifies, but more specifically helps those with less than perfect credit and/or a small down payment qualify for a loan. (Please keep in mind, these are only 2 of many lending options.)

What is escrow in Florida?
Escrow is a legal arrangement in which an asset (such as cash, real property or other tangible asset) is deposited into safekeeping (e.g., a bank account) under the trust of a neutral third party (escrow agent) pending satisfaction of contractual contingency or condition(s). Once the condition(s) has/have been met, the escrow agent will deliver the asset to the party as prescribed by the contract.