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Closing and anotherClosing and another
considerationconsideration
Prepared byPrepared by
Mr. X, Y & ZMr. X, Y & Z
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The Closing ProcessThe Closing Process
Opening EscrowOpening Escrow
Removing ContingenciesRemoving Contingencies
Obtaining Title Insurance andObtaining Title Insurance andTitle ReportTitle Report
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Opening EscrowOpening Escrow
How to Open EscrowHow to Open Escrow
Finding an Escrow HolderFinding an Escrow Holder
Cost of EscrowCost of Escrow
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Removing ContingenciesRemoving Contingencies
Inspection ContingenciesInspection Contingencies
Negotiating Cost of RepairsNegotiating Cost of Repairs
Removing InspectionRemoving InspectionContingenciesContingencies
Financing ContingenciesFinancing Contingencies
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Obtaining Title Insurance andObtaining Title Insurance and
Title ReportTitle Report
Function of title insuranceFunction of title insurance
Financial institution requirementsFinancial institution requirements
Problems that arise with the titleProblems that arise with the title
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Function of Title InsuranceFunction of Title Insurance
To secure both the seller or the buyerTo secure both the seller or the buyer
against unknown clouds on the legal title ofagainst unknown clouds on the legal title of
the propertythe propertyE.g.E.g.
Against an unrecorded deedAgainst an unrecorded deed
Against a forged deedAgainst a forged deed
Against an unrecorded easementAgainst an unrecorded easement
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Financial InstitutionFinancial Institution
RequirementsRequirements
Preliminary /Prelim /Pre Title ReportPreliminary /Prelim /Pre Title Report Ordered after the buyer and the seller signed theOrdered after the buyer and the seller signed the
house purchase contracthouse purchase contract
BuyerBuyers offer should be considered as a approval of as offer should be considered as a approval of apreliminary title reportpreliminary title report
It should be completed earlier in escrow process toIt should be completed earlier in escrow process toanticipate any problemsanticipate any problems
Contingency ReportContingency Report A statement that summarize the current condition ofA statement that summarize the current condition of
the title of the property.the title of the property. Including liens, encumbrances, covenants, conditions,Including liens, encumbrances, covenants, conditions,
and restrictions (CC&Rs), and easements.and restrictions (CC&Rs), and easements.
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Financial InstitutionFinancial Institution
RequirementsRequirements
California Land Title AssociationCalifornia Land Title Association
(CLTA) Report(CLTA) Report Covers items in the public recordsCovers items in the public records
Mortgage liens, trust deed liens, judgment liensMortgage liens, trust deed liens, judgment liens
American Land Title Association (ALTA)American Land Title Association (ALTA)
ReportReport More extensive than CLTA, since it covers both publicMore extensive than CLTA, since it covers both public
records, and by physically inspecting the propertyrecords, and by physically inspecting the property
Discuss how much they cover, and whom they benefitDiscuss how much they cover, and whom they benefit
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Problems That Arise with The TitleProblems That Arise with The Title
Esta
blishment Process
Esta
blishment Process
Refuse to go through with the transactionRefuse to go through with the transaction
Give seller an extension to solve the problemsGive seller an extension to solve the problems
Buy the house with less than perfect titleBuy the house with less than perfect title
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Closing EscrowClosing Escrow
The process of closing escrowThe process of closing escrow
Required paperworkRequired paperwork
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The Process of Closing EscrowThe Process of Closing Escrow
Completed 4 days before closing processCompleted 4 days before closing process
To avoid any kind of delaysTo avoid any kind of delays
Completed paperwork, cleared down payment, andCompleted paperwork, cleared down payment, and
the loan proceeds, the escrow officer will preparethe loan proceeds, the escrow officer will preparenew deed that named the new ownernew deed that named the new owner
New deed transferred to the County RecorderNew deed transferred to the County Recorderss
OfficeOffice
Then, the seller will receive its payment at the endThen, the seller will receive its payment at the end
of the dayof the day
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Required Paperwork for ClosingRequired Paperwork for Closing
EscrowEscrow
Final escrow instructionFinal escrow instruction Copy of preliminary reportCopy of preliminary report
Deed of trust from the lenderDeed of trust from the lender
Copies of structural pest control and otherCopies of structural pest control and otherinspection reportsinspection reports
Foreign Investment in Real Property TaxA
ctForeign Investment in Real Property TaxA
ct(FIRPTA) statement(FIRPTA) statement
Fund disbursement provided by the lenderFund disbursement provided by the lender
Any previous rental agreementsAny previous rental agreements
Settlement statement that listed all costs preparedSettlement statement that listed all costs preparedby escrow holderby escrow holder
Statement authorizing an impound accountStatement authorizing an impound account
Perjury statementPerjury statement
Statement that shows the hazard insuranceStatement that shows the hazard insurancecoveragecoverage
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Other ConsiderationsOther Considerations
Check out a houseCheck out a houses conditions condition
1.1. Common Disclosure StatementsCommon Disclosure Statements
2.2. Real Estate Transfer DisclosureReal Estate Transfer Disclosure
StatementStatement
3.3. Natural Hazard DisclosureNatural Hazard Disclosure
StatementStatement
4.4. Disclosure of Deaths and or/AIDSDisclosure of Deaths and or/AIDS5.5. Disclosure of Military OrdnanceDisclosure of Military Ordnance
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Final Home InspectionFinal Home Inspection
American Society of HomeAmerican Society of Home
InspectorsInspectors
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Home WarrantyHome Warranty
What is it?What is it?
FunctionsFunctions
BenefitsBenefits
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ClosingClosing