Page 68 - New Agent Real Estate training book

A decision for ordering a new survey of the property is usually optional; this decision is up to the buyer
at their expense. The cost of a new survey for a neighborhood residential property is typically $425.00 to
$450.00 (may be higher in some circumstances).

The buyer’s attorney will also order at the buyer’s expense a Certificate of Assessment, if applicable. A
certificate of Assessment is required when dealing with a Home Owner Association, and it verifies
details regarding HOA dues, balances, and possible assessments owed.

The Closing Disclosure Form or Settlement Statement

Closing Document/Settlement Statement/HUD-1 – All three terms are basically the same thing, referring
to a final statement providing an accounting of all funds exchanging hands during closing. Both buyer
and seller will receive a statement outlining all closing costs, fees, escrowed funds, prorated expenses,
as well as the final amount due from the buyer and final amount due to the seller.

On most mortgage loans, the lender is required to provide to the buyer a Closing Disclosure Form no less
than three (3) days prior to closing. This form replaces the HUD 1 settlement statement on these loans,
and outlines all of the buyer costs, fees, payments and figures for closing. A separate Closing Disclosure
Form will be provided to the seller. Closing attorneys also typically provides a master settlement
statement for the closing, which outlines all buyer and seller figures for closing. Upon receipt of these
forms the buyer, seller, and realtors should carefully review and immediately contact their attorneys if
there are any questions, corrections or other additions or changes to the closing disclosure form or
settlement statement.

Funds Due at Closing

All funds due at closing are required to be “good funds” immediately disbursable from the attorney trust
account at or in conjunction with closing. This means that if funds are due they must be delivered by
wire transfer or by certified bank check (with certain exceptions for small sums due at closing). Wired
funds are “good funds” upon receipt, but if payment is by certified check it may be necessary for the
check to be delivered and deposited at least one day prior to closing for a certified check from a bank
with local branches. Attorneys may not be able to accept certified checks from out of state banks, so if
funds are due from clients at closing, they should contact their attorney prior to arrange for “good
funds” to be delivered at closing.

Review Documents Prior to Closing

Loan documents, known as ‘loan package’, should be sent no later than the day preceding closing for
home purchase closings. In some circumstances, documents may not be sent until the day of closing.
Loan documents can be sent to the buyer for review via e-mail prior to closing (provided it’s received in
a timely manner from the lender). The seller at their closing will sign the Title to Real Estate (deed)
conveying the property, and several affidavits and other closing forms, which typically include the S.C.