Real Estate

Hopefully, you have already consulted an attorney and negotiated the Purchase and Sale in regards to various contingencies. Generally, the closing process should take eight to ten weeks (assuming there are no title problems). I would not book the movers for now, wait to see if your transaction is indeed an average deal. The movers probably will not need much lead time, and you do not want to commit to a date you cannot honor. Other factors to consider are if you are selling and need the proceeds to buy, this can get tricky.

No. All brokers represent the seller unless they specifically are engaged as a “buyer’s broker”. You should have received a notice explaining this when you first began dealing with the broker in question.

Some items are considered fixtures and attached to the property in such a way as to make their removal impossible without altering the property. If you wish to take them, they must be deleted from the purchase and sale agreement’s description of the premises to be sold, and any structural changes made must be remedied.

Because you do not own it yet. If coordinating moving dates is a real problem, we can try to arrange for a use and occupancy agreement, but it should be in writing and address issues such as responsibility to insure, assumption of liability, possibility of damage to the property and a contingency in the event that the owner has to evict in order to regain possession.

It depends on the loan program offered by your lender. You should ask in detail all fees associated with the loan that is being offered prior to the closing with the lender. At a minimum, you may be expect to pay one or two points [Points are fees charged to bank customers for the use of money. Although charged in many kinds of loan transaction, they are most commonly thought of in connection with residential lending (that is also the only loan in which the amount of the fee is regulated by state law: they are capped at one percent if the loan is not to be sold in the secondary market and at two percent if the loan is intended for sale). A point is calculated at one percent of the loan amount; thus, on a $160,000 loan to purchase a $200,000 house, one point would equal $1,600; one and a half points would equal $2,400; and two points would equal $3,200]; an application/credit report/appraisal fee ranging from $400-$600, some of which may be required to be prepaid; one year’s mortgage insurance (if applicable); and interest in advance for the balance of the month in which you close. You will also be required to purchase Hazard Insurance for your new home prior to closing.

In addition, the lender will collect the prepaid escrows for taxes (which when “netted out” against the tax adjustment will equal about three months worth), hazard insurance (usually for two months, based on the actual premium) and mortgage insurance if applicable (for two months, based on the actual premium). Depending on the lender and the program, there may also be charges for document preparation (usually $100-200), a tax service fee (usually $85), deliveries ($25-$30) and transfer of serving charges ($75-assignment; $5-15-certified copies).

The bank attorney will collect and disburse for recording fees ($365); title abstract ($150-250); municipal lien certificate ($25); plot plan ($150); title insurance; and his or her fee.

*Note: All costs listed above are approximate.

It is a policy of insurance which protects the lender and, if purchased by the buyer, the owner of the property from claims against the title to the real estate. While attorneys must certify to buyers that the title to the property is good (if such certification is made to the lender), the owner will not be able to collect on such a certification if the attorney is gone or if the problem is one for which the attorney would not be liable, such as a forged document in the chain of title. In such an instance, the insurance policy would cover where the attorney would not.

The biggest job for your attorney will be to review and negotiate the Purchase and Sale based on your particular circumstances and requests. Because the bank attorney represents only the bank, you pay him or her (usually $500 to $750) for that purpose only. Accordingly, unless the closing impacts on the validity of the security interest being given to the bank, its attorney will not get involved in aspects of a closing which are strictly between buyer and seller. No matter how good a lawyer he or she is, the bank’s attorney does not care about the terms of your purchase and sale agreement, whether or not the subdivision restricts the hanging of wash in the backyard or the fact that the seller assured you that the last month’s rents were returned to the tenants and all security deposits were being held in the manner required by statute. Your own attorney will be concerned with all these matters and will also represent your interest if it should differ from the bank’s (for instance, if the loan terms change from those in the commitment letter to the loan documents at the closing).