Photo: Marc Roberts
I was impressed when I was invited by my Title company to learn more about title issues. After all, problems with title are not fun and can be difficult. It's even better when you have a professional in your corner that is committed to YOUR education and your transactions. I chose to invite Ashley Bush of Legacy Title Co, Colorado Springs, to join ActiveRain. I hope she follows my invitation to our community.
Ashley did a fantastic job closing for us and a great job just the same, teaching this class:
This week I was invited by my closing company to learn about their work. Acutally, it was quite interesting and I learned a lot. It was important to the instructor of this class was that we, the agents, learn what makes a closing smoother and that better communication usually results in an 'painfree' closing. What can be better than that?
I will take my title company's suggestions in consideration for my next closing (all in reference to Colorado statute). Here is what I learned:
1. All funds provided at closing must be in the form of "GOOD FUNDS" per the Colorado Statute. The following qualify:
- Wired Funds - not all title companies do that but Legacy Title always has their wiring instructions attached to the title commitment.
- Cashier's Check, Local Credit Union Check and Official Check
- Certified Check
- Cash are good funds, however some title companies, such as Legacy do not like to accept cash. There are issues with deposit, other laws kick in if the amount you are bringing to the table is above a certain limit (money laundering) Please talk to your closer/title company before you want to bring a suitcase with unmarked dollar bills to the table
- Post Office Money Orders
Money market checks, personal checks and money orders other than Post Office issued are not good funds.
2. Buyers and Sellers must bring a valid photo ID to closing. Please ensure that the ID shows the name that will be used on the closing documents. If you've had name changes or maybe you are a legal resident alien in the United States you will have to provide additional documentation.
3. Have you ever had a closing, when you all of a sudden notice that one of the parties is a 'reader'. It's their right, and by all means read what you sign! However, a good time to read through all the documents is before closing. Therefore , inform your closer if you notice that your buyers or sellers READ EVERYTHING word for word. [Legacy] Title will be happy to provide you a set of closing documents, that your client(s) can read before the closing.
4. If you learn that there will be an attorney present at the closing, you should tell your title company ahead of time so that they can provide a copy of the title commitment and closing documents. This allows for ample time to review the documents before closing.
This one I thought was strange, but 'my' closing agent insisted that they have a few of these cases every once in a while...REALLY?:
5. Tell you closer when one of the parties involved (ie. especially on title) are deceased!
6. Tell your closer about time and date of closing as soon as you have set up. Seems like a no-brainer as well, but apparently it needed to be mentioned.
7. If your clients are divorced or are divorcing, tell your closer, so that separate sets of documents can be sent out, separate closings can be scheduled, if needed and that the proceeds are split in accordance with their written instructions.
8. MY closing company would prefer to know it if the seller/buyer or any participant in the closing has special needs. They would like to make arrangements to accommodate your clients' requirements. (Great idea!)
9. If one of the parties to the transaction, whose signature is required on closing documents, will NOT be attending the closing, tell your closer so that documents can be mailed out before the closing date.
10. No alcohol BEFORE the closing, all parties must be competent. Pop the champagne afterward.
11. All Power of Attorneys have to be approved ahead of time. If your buyer/seller plans to use a PoA at closing let your title company know.
I would love to hear your tips or even better closing stories!
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