Mock Closing

Mock Closing What to Expect Before the Big Show!

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Pre-Closing • What is Title Insurance?

• Title Terms • Who’s Involved?

• Things to remember

Closing • Closing statements • Buyer Documents • Seller Documents

Post Closing • Funding • Recording

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Pre-Closing

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What Is Title Insurance?

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Ask Your Rep for a Rate Sheet

A title insurance policy protects the future of your real estate investments.

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We start by researching the full history of property.

We clear up any known issues and then assume certain kinds of additional risk on behalf of the owners.

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Through the years, a property may change hands many times through sale, inheritance, marriage, divorce, foreclosure or bankruptcy.

Each transfer is an opportunity for an error in title to arise, which could affect whether the buyers have full ownership of the property. That’s why you need us!

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Examples of Claims Against an Owner’s Title Policy

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Examples of Claims Against an Owner’s Title Policy

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Examples of Claims Against an Owner’s Title Policy

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Closing The conclusion of the sales transaction when the seller transfers title to the buyer in exchange for consideration.

In Texas, these proceedings are usually held at a Title Company.

Title Terms

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Closing Costs Costs the buyer must pay at the time of the closing in addition to the down payment, which may include: • Points • Title charges • Credit report fee • Document preparation fee • Mortgage insurance premium • Inspections • Appraisals • Prepayments for property taxes

Title Terms

• Deed recording fees • Homeowners' insurance.

Notary A Notary Public's main duty is to verify the authenticity of a document by confirming the signer's identity, signature, and purpose of

Title Terms

signing.

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Power of Attorney A written authorization by a person to another person to act for them on their behalf. Also known as POA.

Title Terms

Who’s Involved?

Listing Agent Buyers’ Agent Escrow Officer Escrow Assistant Business Development Rep Lender

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Role of the Listing Agent

Role of the Buyer’s Agent

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Role of the Escrow Officer

Role of the Escrow Assistant

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Role of Your Independence Title Business Development Representative

Role of the Lender

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Before Closing, Let Title Know…

Were any changes made during option?

Is this transaction linked to another closing?

Is a Power of Attorney going to be needed?

Will all parties be present at closing?

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A Closing Confirmation Email is Sent to the Sellers

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A Closing Confirmation Email is Sent to the Buyers

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Closing

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Greeting and Welcome • Closer will welcome everyone.

Seating Chart Example

• Think about where you sit. signer

• Don’t sit right next to the closer.

signer

• Reserve those spots for your clients.

closer

• Ask closer if they have a preference. signer

signer

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Closer will ask for ID Must be valid (not expired) Government Issued Photo Identification Driver’s License Passport

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Closing Statements

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Closing Statements- Loan

ALTA Settlement Statement

Seller’s Closing Disclosure or CD

Buyer’s Closing Disclosure or CD

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Closing Statements - Cash

HUD Statement for Cash Transactions

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ALTA Statement in Detail

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calculate straight

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ALTA Pg. 1

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ALTA Pg. 1

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ALTA Pg. 2

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ALTA Pg. 2

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x/x/xx

x/x/xx

x/x/xx

x/x/xx

ALTA Pg. 3

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HUD Statement in Detail

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HUD Pg.1

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HUD Pg.1

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HUD Pg.1

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HUD Pg.2

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HUD Pg.2

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HUD Pg.2

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x/x/xx

HUD Pg.2

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Closing Statement Review Checklist q Sales Price q Leases (security deposit) q EM refund q Option Fee q Survey $$ q Home Warranty q Commissions q HOA Fees q Seller Concessions q Repairs

Buyer Documents

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Other Documents

Important Documents

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Deed of Trust • • • • • • •

15-20 pages Buyer initials each page Signs and notarizes last page Mortgage document Recorded after closing Creates a lien on the property Lender can use to foreclose

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Note • • • • • • •

3-5 pages Buyer initials each page Signs and notarizes last page Promise to pay Contains loan terms Not recorded Goes back to lender

Other Loan Documents MORTGAGE INSURANCE DISCLOSURE

PATRIOT ACT DISCLOSURE

AKA STATEMENT

PAYMENT AND AMORTIZATION SCHEDULE

APPRAISAL/VALUATI ONS ACKNOWLEDGMENT

COMPLIANCE AGREEMENT/ERROR S AND OMISSIONS

CORRECTION AGREEMENT

FINANCIAL CONDITIONS CERTIFICATION

FIRST PAYMENT NOTIFICATION

FLOOD HAZARD DETERMINATION

INITIAL ESCROW ACCOUNT DISCLOSURE STATEMENT

BORROWER CONSENT TO USE TAX RETURN INFORMATION

IRS FORM 4506-C AND W9

LENDER HOLD HARMLESS

MINERAL RIGHTS ACKNOWLEDGMENT AND AGREEMENT

NOTICE REGARDING FURNISHING NEGATIVE INFORMATION

OCCUPANCY AFFIDAVIT AND FINANCIAL STATUS

SIGNATURE AFFIDAVIT

TAXPAYER CONSENT FORM

TEMPORARY PAYMENT COUPONS

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Title Company Documents

AFFILIATED BUSINESS AGREEMENT DISCLOSURE

CLOSING VERIFICATION AND AGREEMENT

NOTARY CERTIFICATION

TEXAS DISCLOSURE

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Seller Documents

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Warranty Deed • 3-5 pages • Seller signs and notarizes • Conveys title to buyer • Vendor’s lien = mortgage • Recorded after closing

Title Company Documents

1099-S

CERTIFICATION FOR NO INFORMATION REPORTING

AFFIDAVIT OF DEBTS AND LIENS

AFFIDAVIT OF IDENTITY

AFFILIATED BUSINESS AGREEMENT DISCLOSURE

CLOSING VERIFICATION AND AGREEMENT

NOTARY CERTIFICATION

SELLER PROCEEDS INSTRUCTIONS

T-47 AFFIDAVIT

TEXAS DISCLOSURE

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Post – Closing

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Celebrate Your Clients!

• Get Pictures • ITC Closing Sign • ITC Agent ONE App Filters • Get a Video Testimonial

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Independence Title will send signed docs to the lender.

Once received, the lender will give funding approval.

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Confirm all funds are at the title company.

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Fund & Disburse!!!!

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Seller

Funding emails are sent.

Buyer

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DA – Disbursement Authorization LET US KNOW how to get you paid!

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Necessary documents are recorded

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Title Policy

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At Independence Title, we’re behind you every step of the way!

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Contact your Independence Title Business Development Rep TODAY and ask to be paired with one of our Escrow Teams!

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