Real Estate Settlements in Washington, DC and Maryland; A Stress-Free Settlement
Real Estate Settlements in Washington, DC and Maryland; A Stress-Free Settlement |
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FREQUENTLY ASKED QUESTIONS (FAQs)Q. What documents will I need to gather prior to settlement? A. As a Seller\Refinance Borrower it will be helpful if you provide Jacobs & Associates with a copies of the following: your owner's title policy (if any), recent tax bill, recent water bill (if any), survey (if any), most recent monthly statement or coupon for all existing mortgages to be paid off, any divorce decrees or death certificates relating to prior joint-owners. Important Note! Seller will also need to bring all housekeys, burglar alarm codes, garage door openers, combinations, mailbox keys, and similar items. As Buyer we will need a legible copy of your sales contract with all addenda and all correspondence with seller subsequent to the contract date. You will need to arrange for hazard insurance on the new property, naming your lender as mortgagee and to be effective on the settlement date. Important Note! Buyer will need to wire the remainder of the purchase price in advance of the settlement or bring CERTIFIED funds to the settlement table. For more details please see the DOCUMENTS section. Q. Do I need to hire an attorney to represent me at a settlement? A. In the Washington, DC area settlements are typically conducted with one settlement agent. While that agent is not required by law to be an attorney, due to the numerous legal issues that are involved and all of the legal issues that may arise at the last minute, it is highly desirable to use a settlement attorney to conduct the settlement. When an attorney conducts the settlement the parties can be assured that legal issues are spotted and resolved to everyone's satisfaction. There is also a certain level of continuity with a settlement attorney not always found with settlement companies that are subject to mergers, acquisitions, cessation of business and the like. The attorneys at Jacobs & Associates have been conducting real estate settlements in the Washington DC Area since 1989.
Q. Who selects the settlement attorney? A. the buyer/borrower has a legal right to select the settlement attorney of their choice. However, in certain circumstances a new home builder may specify that they prefer to use their own settlement attorney. To induce buyers to use their settlement attorney they will often pay the borrower's settlement fee for them. In such event the buyer's may still want to hire their own attorney to review the builder's paperwork.
Q. Who pays the settlement attorney? A. Most sales contracts provide that buyer selects the settlement attorney and that both parties agree to pay reasonable settlement fees for services performed for them by the settlement attorney. If Seller's title has defects such as unreleased liens, judgments, multiple mortgages the settlement attorney will typically endeavor to clear these title "clouds" as seller's expense. In a refinance transaction the borrower typically pays the settlement attorney's fees. Of course certain lender's advertise and offer "no-costs loans" in that event the bank will pay the closing costs or finance them along with the loan.
Q. Who does the settlement attorney represent? A. Unlike most attorney-client relationships, which are one-on-one relationships, the settlement attorney represents "the transaction." What this means is that the settlement attorney has a duty to all parties to the transaction to see that the terms of the transaction are met. The settlement attorney in effect serves as counselor to all parties but not an advocate for any of the parties.
Q. How much does a settlement cost? A. Total costs for a settlement will vary for every transaction. Please see COSTS for specific cost items and ranges of costs in this area.
Q. If I am a seller do I get a check for the proceeds of the sale of my home at the settlement? A. No. most lenders will require that their Deed of Trust is recorded in the land records of the appropriate jurisdiction before any funds are disbursed. Recording typically takes one day, so typically the sales proceeds are available to seller the first business day following the settlement date. Q. Do I have to attend settlement? A. No. recently the District of Columbia passed legislation to allow parties to use Powers of Attorney to convey real property. However, if a buyer/seller intends to use a Power of Attorney in DC they should consult Jacobs & Associates in advance to review/prepare the Power since it must contain specific statutory language in specific typesize. In Montgomery County, Maryland the Clerk of the Court (on the advice of the assistant attorney general of Maryland) has STOPPED allowing Powers of Attorney to be used to sign certain refinance affidavits which allowed tax exemptions from certain transfer and recordation taxes. Thus, although Powers of Attorney are permitted generally, certain refinance affidavits must be signed personally by parties refinancing their mortgages. Please contact Jacobs & Associates for further details, or re-visit our website for updates to this unfolding situation. Q. Do I need to buy title insurance? A. There are two types of title insurance policies: Owner's Policies and Lender's Policies. When purchasing a home the buyer's have the option of purchasing, for a one-time premium, and Owner's policy of title insurance. The premium is based on the purchase price. Click COSTS for sample owner's title insurance premiums. The owner's title policy insures the buyer for as long as the buyer owns that property. Virtually all lenders require that the borrower purchase, for the lender's benefit, a lender's title policy. This policy insures the lender only for the life of the loan. Jacobs & Associates has been approved to write title insurance for two of the nations largest and most respected title insurance companies: First American Title Insurance Company and Commonwealth Land Title Company. We are particularly pleased to be one of the first title agents in the area to be approved to carry First American's new "Eagle Policy" which provides the best title insurance coverage available in the marketplace today. |
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