Frequently Asked Questions
Who do you represent at my closing?
In a standard
transaction, represent the lending institution
that has agreed to take your mortgage as a
security interest in your property in return for
their commitment to finance your purchase or
refinance. Our interest is in making your closing
hassle-free while also ensuring that it is
conducted properly and according to the lender’s
instructions. However, we are more than happy to
represent the interests of a buyer or seller
independent from the role of the lender’s
attorney.
What
other services do you provide to the lending
institution?
In many states, including Massachusetts, the attorney who represents the bank is required by law to search the title at the Registry of Deeds to the property that is being mortgaged and to certify that the buyer has a good, clear, record and marketable title. The buyer must pay the legal fees for the title examination and certification as part of the closing costs.
We also act as an escrow
agent to collect and disburse all of the proceeds
and payments resulting from the closing, whether
it be for a sale or refinance. We will obtain and
make your mortgage payoffs and pay on your behalf
any creditor you wish to or are required to
include in your closing costs (credit cards, car
loans, taxes, etc.).
What
other items are included in my closing
costs?
Our
closing costs for a refinance and as a buyer will
include fees for processing, application, credit
reports, tax services, courier costs, and document
preparation, as well as prepaid interest for the
days between the closing until the month before
your first mortgage payment is due. Other costs
may include escrow items such as homeowner’s
insurance (also known as hazard insurance) and
municipal taxes. Recording fees are required to
pay for the costs of recording mortgages and deeds
at your county’s Registry of Deeds.
As a
seller, your biggest closing cost will typically
be your real estate broker’s fee or commission.
This can typically be from 4–8% of the contract
sales price. In many states, including
Massachusetts, the seller also pays for the
revenue stamps required to transfer
ownership.
What
is title insurance?
Title insurance insures
that your title is good both on and off the
record, is not limited to the 50 year period
required to be searched by the attorney, and
protects against fraud and forgeries within the
record.
The bank will require that the
buyer purchase title insurance from an approved
title insurance company to insure its mortgage.
This is known as Lender’s Title Insurance. The
buyer must pay the premium even though the policy
only benefits the bank. However, at the closing
the buyer has the opportunity to purchase Owner’s
Title Insurance that will benefit the
buyer.
Since
the closing attorney must certify the title, why
would I also want title insurance?
The attorney’s certification is based only on the record title for the last 5 years. If a defect does not appear on the record during this time period or appears beyond that time period, the attorney is not liable. Additionally, the attorney is not liable for fraudulent and forged documents that appear on the record.
What
is the likelihood that a title defect will
appear?
The likelihood is not great, but the financial ramifications could be devastating. It is very expensive and time consuming to go to Land Court to cure even simple title defects.
What
does title insurance do if a title defect is
discovered?
If
the insured party is a defendant in a lawsuit
involving a covered matter, the title insurance
company hires counsel and pays for the costs of
the defense, even if the action against the
insured has no merit. If there is a loss to be
paid under the policy, the title insurance
company’s reserves will cover
it.
What
items should I bring to the closing if I’m selling
my home?
Your real estate broker will
more than likely assist you in obtaining the items
necessary for the closing. However, if you are
selling your home without the aid of a broker or
would just like to know what is needed, the
following list should help.
• Smoke
detector certificate: this can be obtained from
your local fire department - it will be issued to
you upon a successful inspection. We will need the
original copy.
• Title V certificate
(Massachusetts only; and if appropriate): if you
have a septic system rather than town/city sewer,
this can be obtained from the Massachusetts
Department of Environmental Protection stating
that it is in good, working order. We will need
the original copy.
• 6(D) certificate
(condominiums only): this can be obtained from
your condominium association – it will state that
all of your fees are current and your unit is not
in violation of any bylaws.
• Home/pest
inspection: this may be required as part of your
purchase and sale agreement or by the buyer’s
lender – you can verify with us prior to closing
if it is required.
• Deed: a deed must be
drafted for your signature to transfer ownership
to the buyer – we can draft deeds for you at a
small cost or your attorney (if you have one) can
do it for you.
• Final bills: the closing
is the time to ensure that the seller reimburses
the new owners for outstanding utility bills (or
pay them off prior to closing) and for the new
owners to reimburse the seller for any remaining
home heating oil and any municipal taxes that have
already been paid by the seller.
• House
keys: this may be obvious, but people forget them
all the time.
• Checkbook: having your
checkbook with you will ensure that all bills and
balances due between parties can be easily paid at
the closing – thus avoiding any unnecessary
delays. If the amount is in excess of $1000,
please bring certified funds (banker’s check,
money order, etc.).
• Driver’s license: the
closing attorney is required to make a copy of
your driver’s license. If you do not have a
driver’s license, any other government-issued
photo ID is acceptable (passport, state
identification card, etc.).
What
items should I bring to the closing if I’m buying
a home?
Your real estate agent will more
than likely assist you with the closing process.
However, if you are purchasing your home without
the aid of an agent or would just like to know
what is needed, the following list should
help.
• Final balance: unless you are
financing the entire cost of your new home, you
will likely have to pay the balance of the
transaction at closing. We can provide you with
the final figure in the day or two prior to the
closing. We accept banker’s checks in your name or
made out to us as the escrow agent.
•
Checkbook: having your checkbook with you will
ensure that all bills and balances due between
parties can be easily paid at the closing – thus
avoiding any unnecessary delays. If the amount is
in excess of $1000, please bring certified funds
(banker’s check, money order, etc.).
•
Driver’s license: the closing attorney is required
to make a copy of your driver’s license. If you do
not have a driver’s license, any other
government-issued photo ID is acceptable
(passports, state identification cards,
etc.).
Loan
Originators:
Why
should I choose SouthCoast Title & Escrow
Services to close my mortgages?
There a several reasons why
you should choose SouthCoast Title & Escrow
Services to close your loans. We provide an
efficient, low-cost, seamless closing product that
will help you grow your business and improve
client relations.
This product begins with
our pre-closing departments and runs through to
completion with our closing attorneys and
post-closing departments following up on all
aspects of your loan.
We will order all
titles, insurance binders, payoffs, surveys, and
inspections that are necessary for the closing to
occur. Our normal title policy turnaround is 1 - 2
days, in some cases limitations because of local
districts hours or locations may delay
processing.
We will fax the HUD's to you as
soon as completed in order to verify figures, make
any necessary changes, and to obtain final
approval prior to closing.
Our closing costs
are significantly lower than traditional law firms
and other title and escrow
companies.
What is the end-product will my client will see?
Your clients will
receive the highest levels of attention to their
needs and questions from the beginning of the
process all the way through disbursement.
We
will provide to every client a clean, bound copy
of every document which they sign at closing to
keep for their records.
Additional Services
Automated Valuation Models (AVM)
