Clear Title....It's Required at Closing

By
Real Estate Agent with Keller Williams 414-525-0563 57026-90 Broker

 One of the very important things for every Seller to understand is when the property has an offer and  closes, the title must be clear.  Clear means that any charges associated with the house are paid.

     If the sale price does not cover all the charges, the Seller(s)

must have a plan in place to bring money to closing.  The mortgage, the home equity loan, the taxes,title insurance the real estate commission, any taxes, title and/other fees, water and sewer bills ...all things house related must be paid in full for the property to pass with "clear title" from Seller to Buyer.

    It is part of the Listing agent's job to show the Seller the net proceeds of the house.  A net sheet is important and should be updated if a listing is on the market for a while, if the market changes and a price reduction is necessary enabling the Seller(s) to know at any time what profit they will realize...OR the amount that would not be covered by the sale price.

    Markets are improving across the country with list prices increasing over previous years. It's easy to "assume" that everything will be covered by the sale price...and agents who do not ask the "Million Dollar Question"...How much do you no surpriseowe on the mortgage?  may be surprised to learn it is more than they thought...or that there are other liens. The second mortgage that was taken out for...college expenses, the remodeling, the new car....all have to be paid in full.

   The Best surprise when it comes to the proceeds from the sale of a home...is none at all.  Listing agents...keep your Sellers updated.  Sellers...if you have not been given a net sheet at the beginning of your listing and during the listing if you have had any price reductions....tell your Agent to calculate one for you.

      If you or anyone you know is selling a home in southeastern Wisconsin, call the Hansons...the only surprise will be the superior level of service we offer for all things real estate.

Posted by

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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clear title in a real estate transaction
net proceeds from the sale of a house

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Rainmaker
3,707,757
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

This is great information to share with home sellers. Many will be shocked when they discover that they will have to bring money to the closing table.

Mar 03, 2016 09:34 PM #11
Rainmaker
2,060,722
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

You do a great job in going over a tough subject Sally K. & David L. Hanson , I like to address this with my seller after they sign the listing and before we get offers to be prepared. 

Mar 03, 2016 09:46 PM #12
Rainer
1,756,848
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Sally.  Congratulations on the feature.  A net sheet to the seller is so important.  Great blog.

Mar 03, 2016 09:48 PM #13
Rainmaker
2,066,240
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Sally K. & David L. Hanson "It's easy to "assume" that everything will be covered by the sale price...and agents who do not ask the "Million Dollar Question” “How much do you owe on the mortgage?” may be surprised to learn it is more than they thought...or that there are other liens." Agreed.  AKA Sort Sale! Re-Blog!

Mar 03, 2016 10:13 PM #14
Rainmaker
2,273,863
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Great information!  Nice "chatting" with you the other day!  Have a great weekend

Mar 03, 2016 10:32 PM #15
Rainmaker
1,738,048
Andrew Mooers
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Squeaky clean please Sally K. & David L. Hanson !

Mar 03, 2016 10:45 PM #16
Rainmaker
678,856
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

We need to know the whole story of how much is owed on the house in order for us to give the seller an accurate assessment of what they stand to gain from the sale of their home. 

Mar 03, 2016 10:55 PM #17
Ambassador
2,388,413
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

In our state, we agents usually try to cover all the issues prior to close. We use lawyers to close the process and hopefully they will catch what we agents might have missed.

Mar 03, 2016 11:30 PM #18
Rainmaker
2,380,101
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo & Home Sale Specialists

Ouch...don't want that happening on scheduled closing day!

Mar 03, 2016 11:54 PM #19
Rainmaker
2,048,995
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

I was asked the other day to provide the costs of the deal for my seller so that he could plan his next move accordingly. I provided an estimate. Yes to knowing where one will land when its over

Mar 04, 2016 12:02 AM #20
Ambassador
2,938,435
Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Sally and David

Educating sellers on the issue of clear title and what it means, and monies to be paid off as part of closing is so important, and early in the process not at the last minute. Some sellers are surprised at what comes out of the purchase price before they get that check.

Jeff

Mar 04, 2016 01:12 AM #21
Ambassador
848,633
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

I have found here in my area if the title companies will not issue a title policy then there may well be problems with the title.

Mar 04, 2016 02:19 AM #22
Rainmaker
3,325,486
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

It is important to give sellers a net sheet and educating them.

Mar 04, 2016 03:16 AM #23
Rainmaker
908,388
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Important to ask sellers the right questions. Title issues can hold up a home sale for sure. 

Mar 04, 2016 03:54 AM #24
Rainmaker
1,018,695
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Bottomline, Sally K. & David L. Hanson ... you can't make sound, informed decisions if you don't have all the information needed to do so.  You prove why it's so important to dedicate the time to a search to find those professionals that will provide that info needed ... 

Gene

Mar 04, 2016 04:29 AM #25
Rainmaker
236,508
Susan Jacobsen
The Alliance Group Realty - Hilton Head Island, SC
20 Years Providing WOW Real Estate Service

Sally - I really like this and that sellers' net sheet (or buyers for that matter) is really important and a good tool during a listing or selling presentation. As far as the title is concerned, a buyer will often ask if it's necessary to have title insurance - I pass them on to the attorney (since they research and write those policies in our state) but also really reinforce the importance. Your customers/clients are really lucky to have professional and committed representation!

Mar 04, 2016 06:03 AM #26
Ambassador
2,965,462
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Sally and David I am always surprised when I sit down with a borrower who is selling their present home and buying another one, that their Realtor did not do a Net Sheet with them, and the first time anyone has given them a realistic idea of what they will net on the sale of their house is me.

Mar 04, 2016 08:58 AM #27
Rainmaker
1,575,129
Ginny Gorman
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Sally K. & David L. Hanson I find so few agents here do net sheets for the closing...it just amazes me and clear title...gees, you would think it is rocket science for many!

Mar 04, 2016 10:23 AM #28
Rainmaker
872,275
Kat Palmiotti
Better Homes & Gardens Rand Realty, Monroe NY Real Estate, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Yes, knowing what a seller is actually going to walk away with is key knowledge to have up front.

Mar 04, 2016 09:33 PM #29
Ambassador
3,100,358
Praful Thakkar
Keller Williams Realty - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Sally K. & David L. Hanson - the NET SHEET is a great tool that we should use with the sellers - that gives them a clear idea on what they will get at the end of the sale and after ALL EXPENSES related to home are paid up.

Mar 07, 2016 02:14 PM #30
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Rainmaker
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Sally K. & David L. Hanson

WI Realtors - Luxury - Divorce - Short Sale
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