RESIDENTIAL CLOSING CHECK LIST
1. PURCHASE DOCUMENTS: Review the Purchase Documents for accuracy of basic information, including:
b. Property description.
c. Financing terms/deposits.
d. Dates and times.
e. Warranties, with special attention to "as is" language.
f. Verify possession at closing, if not, rent issue.
g. Risk of loss issue/insurance.
h. Form of conveyance, Warranty Deed or Land Contract.
2. CONTINGENCIES: Review for Contingencies and suggest those not included in the documents as follows (have all been satisfied?):
a. Contractors inspection covering mechanical, electrical, structural, and lead based paint.
b. Financing, including interest rate, term, institution, and timeline. (credit worthiness of buyer?)
c. Environmental, including UST's and wetlands if applicable.
d. Well and septic and or impact fees on public utilities if not in place.
e. Removal of all hazardous substances from premises, ie. paint, oil, etc.
f. Zoning and or past histories if alterations or specific use concerns are present. (City or Township)
g. Radon, Asbestos, Urea Formaldehyde, High tension electrical wires.
h. pest inspection
j. Attorney approval of both Purchase Documents and Closing Documents including title work.
k. Verify and review default procedures and timelines base upon the applicable contingencies.
l. walk -thru 24 hrs. prior to closing and checklist
3. DEPOSITS: Negotiate that deposits be held in CMG, P.C. trust account pending the closing.
4. SELLERS DISCLOSURE: Mandatory that a Sellers disclosure statement be filled out and signed. Have client review and address any concerns.
5. TITLE POLICY: Title policy to be issued without standard exceptions and the closing to be insured. Will probably require that the seller provide an updated survey and execute an affidavit stating that there are no liens or encumbrances etc. Review closing documents including:
a. Accuracy of all documents as to parties, terms, and conditions etc.
b. Legal descriptions.
c. Liens, encumbrances, encroachments,restrictions etc
d. Mathematics on buyers and sellers statements including tax pro-rations, disbursements and applicable costs. Verify amount required at closing, and type of payment req'd.
e. Recording requirements as applicable with respect to both County, register of deeds and IRS.
6. NEW CONSTRUCTION: verify the reputation and experience of the builder. Inspections are all the more critical. If draw system is in place, coordinate through the title company and verify sworn partial waivers, notice of commencement requirements etc. as construction process goes forward.
May want separate closings for the land and construction loan.
Verify that borrower has end loan in place prior to closing.
7. CONDOMINIUM : if a purchase, review and explain to the client the contents of the Master Deed and the form of ownership in general terms. Review the Master Deed for liens, litigation, encumbrances and restrictions etc. that may be adverse to the clients interest or anticipated use.
8. CLOSING AND FOLLOW UP: advise that we typically don't attend closings but are available by phone. Request a copy of all final documents after recordation including a copy of the issued title policy. Send follow up letter to the client(s), agents, and title company.
(While the above is not an exhaustive "how to" I hope that it does provide some useful information to get you started thinking about buying and selling a home. Please do not rely on it but consult the advice of a trained professional like me before taking any action.)
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