Top 10 Tips to Prepare for Your Closing.

Real estate closings are exciting, but it can feel like wading through a cloud of mystery with your fingers crossed hoping that all goes well on closing day.  You don’t have to let that cloud of mystery loom.  These 10 tips, artfully crafted by the highly experienced Licensed Title Agent and President of Richard T. Morehead Title & Escrow, Beth Morehead, will give you clarity and confidence going into your closing.

1) Title Policy.

A Title is the evidence of right which a person has to the ownership and possession of land.  Provide this document to the title company and you could quicken the title commitment turn from days to hours.

2) Survey.

A Survey is the process of measuring land to determine its size, location and physical description, and the resulting drawing or map. Provide the existing survey of the home to the title company and it may be able to save you time and money.

3) Probate.

Probate is the legal process that gives recognition to a will and distributes assets to the intended beneficiaries. As a buyer, ask if anyone vested in title has died.  If probate is needed it can be a 3–4-month delay.  Ask the seller for a copy of their deed.  It is important to know if the owner purchased the property or inherited the property.

4) Bankruptcy

Has the homeowner filed bankruptcy since holding title to the property?  If there is a problem in bankruptcy it will delay the closing a minimum of 30 days.

5) Power of Attorney.

Power of Attorney is an instrument authorizing another to act on one’s behalf in legal matters.  If one or more of the parties will not be present for the closing, get the executed Power of Attorney to your closing agent as soon as possible.  Florida law is very specific about the language of the power of attorney used to convey real estate.

6) Fraud

Trust your intuition if something seems to be amiss. Be particularly suspicious of out-of-town sellers with vacant land.  Fraud can be committed with use of Power of Attorney and extra care needs to be taken.

7) Licensing ID.

Be sure to have your current driver’s license with your accurate address as identification.  An expired driver’s license is not acceptable and will cause a delay.

8) Minors.

Are any minors vested in the Title?  If so, guardianship will be needed and can take months to complete.  A guardian in someone appointed by the court to administer affairs of an individual not capable of administering his or her own affairs.

9) Divorce

Florida’s homestead laws require both parties to execute the deed.  Title companies run into problems when trying to covey a title before divorce is final.

10) Trusts/Trustees.

A trust is a property right held by one as a fiduciary for the benefit of another. Recognizing early that the title is vested in a trust can save you headaches later.  In most cases the title company will need to review the trust to see who has the power to convey and if it’s a dry or passive trust.

There is a lot on the line when you’re closing on a home.  These top 10 tips to prepare for closing are a good starting place, but most people will need more help.  Allow one of Fluid Realty’s Top Realtors to assist in thoroughly preparing you to be protected during this complicated legal process.