We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byRonald Morris
Modified about 1 year ago
Real Estate Principles and Practices Chapter 12 Closing Statements © 2010 by South-Western, Cengage Learning
Key Terms Abstract Closing Closing statement Credit Credit report Debit Escrow closing Lien waiver Origination fee Prepaids Proration Reserves Settlement closing Title insurance Title search Torrens System
© 2010 by South-Western, Cengage Learning Overview Closing Closing: transaction is completed and title is transferred to the purchaser Escrow Real estate company
© 2010 by South-Western, Cengage Learning Escrow Closing Escrow Closing Escrow Closing: third party handles the closing procedure Attorneys Title insurance companies Escrow companies Escrow department of lending institutions Escrow agent represents both parties
© 2010 by South-Western, Cengage Learning Settlement by the Real Estate Firm Settlement Closing: Settlement Closing: carried out by the real estate firm that listed the property Closing statement: debits credits Closing statement: itemizes debits (costs) and credits (assets)
© 2010 by South-Western, Cengage Learning Settlement by the Real Estate Firm Buyer applies for a loan – copy of purchase agreement is given to the lender Credit report and appraisal RESPA: HUD information booklet and good faith estimate
© 2010 by South-Western, Cengage Learning Settlement by the Real Estate Firm Credit report: 1. Credit report: record of paying debt 2. Appraisal 3. Employment record 4. Bank deposits 5. Survey 6. Underwriter reviews file, sets closing 7. Settlement statement
© 2010 by South-Western, Cengage Learning Settlement by the Real Estate Firm 1. Payoff of existing loan 2. Seller signs deed 3. Lien waiver 4. Order inspections Wood infestation Structural Appliance and general Abstract or title insurance Closing statement
© 2010 by South-Western, Cengage Learning Abstracts Abstract: Abstract: history of title “Chain of title” lists all previous owners and instruments affecting title Does not guarantee good title Attorney’s opinion as to condition of title Certificate of title
© 2010 by South-Western, Cengage Learning Title Insurance Guarantees good title title search Date title search was made, owner’s name, property address Outstanding liens, mortgages, easements of record
© 2010 by South-Western, Cengage Learning Title Insurance Possible obstacles to clear title 1. Unpaid taxes or assessments 2. Unrecorded liens and mortgages 3. Unpaid repair work 4. Exact location of boundary lines 5. Interests or claims not of public record and not visible 6. Verify zoning
© 2010 by South-Western, Cengage Learning Title Insurance Indemnifies against matters which have already occurred Unrecorded claims, liens or defects Owners Policy Owners Policy One time fee Converge runs indefinitely Not transferable Forged deeds, illegal acts, or false claims
© 2010 by South-Western, Cengage Learning Title Insurance Mortgagee’s policy Covers loan amount only Reassigned upon sale of loan Leasehold policy: Leasehold policy: protects lessee interest Easement Policy: Easement Policy: insures easement interests American Land Title Association
© 2010 by South-Western, Cengage Learning The Torrens System Application for title is made by the landowner Notice of hearing of quiet title suit Copies sent to those with a known interest Good title is mandated by the court Negates need for title search when property is sold Limited acceptance
© 2010 by South-Western, Cengage Learning Other Prerequisites to Closing May be required with offer to purchase Landmark California court decision Standardized disclosure Seller’s disclosure required in some states
© 2010 by South-Western, Cengage Learning Other Prerequisites to Closing Insurance plans protect against mechanical defects Protects buyer against costly defects after the sale
© 2010 by South-Western, Cengage Learning Other Prerequisites to Closing Lien waiver: Lien waiver: affidavit stating there are no unpaid liens against the property
© 2010 by South-Western, Cengage Learning Closing Expenses 1. Transfer tax 2. Loan Fees Origination fee: Origination fee: fee for issuing the loan Assumption fee Discount points Prepayment penalty Mortgage insurance premiums
© 2010 by South-Western, Cengage Learning Closing Expenses 3. Recording fees 4. Attorney fees 5. Broker’s commission 6. Appraisal fee 7. Survey fee 8. Title expense 9. Escrow account
© 2010 by South-Western, Cengage Learning Proration Division of expenses between the buyer and the seller “User” pays State determines who is responsible for the day of closing 360-day or 365-day year Items paid in arrears are debits to the seller and credits to the buyer
© 2010 by South-Western, Cengage Learning Proration Items paid in advance 1. Insurance policy 2. Rent 3. Security deposits 4. Mortgage interest Items paid in arrears 1. Utilities 2. Mortgage interest
© 2010 by South-Western, Cengage Learning Proration Property tax: $2160, paid Closing: September 1 $2160 ÷ 12 months = $180 per month 4 months X $180 = $720 Credit to the seller, debit to the buyer
© 2010 by South-Western, Cengage Learning Proration Property tax payable twice per year on April 15 and September 15: $1860 Closing: July 15 July 1 used by seller but not paid for $1,860 ÷ 12 months = $155 per month Debit to the seller, credit to the buyer ½ of $155 = $77.50
© 2010 by South-Western, Cengage Learning Purchaser’s Closing Statement
© 2010 by South-Western, Cengage Learning The Seller’s Settlement Statement
© 2010 by South-Western, Cengage Learning Trust Account Balance Sheet
Real Estate Principles and Practices Chapter 12 Closing Statements © 2014 OnCourse Learning.
Chapter 9 Real Estate Finance Practices and Closing Transactions 2010©Cengage Learning. All Rights Reserved.
Chapter 18 Escrow Procedures. The last step in the loan process is CLOSING, when the loan proceeds are distributed and a deed to the property is transferred.
CLOSING the Real Estate Transaction D. Zaharopoulos.
© 2015 OnCourse Learning Chapter 9 Real Estate Finance Practices and Closing Transactions.
© 2009 by South-Western, Cengage Learning SAMIRLANDER Chapter 14.
Chapter 22 Closing the Real Estate Transaction Some closings are face-to-face, and some are conducted through escrow. But in all cases, once again, it’s.
© 2013 All rights reserved. 1 Chapter 7.2 Title Closing New York Real Estate for Brokers, 5th e By Marcia Darvin Spada Cengage Learning.
© 2010 by Cengage Learning Chapter 16 ________________ Title Closing and Escrow.
Modern Real Estate Practice in Pennsylvania 12th Edition Chapter 22: Closing the Real Estate Transaction.
Chapter 7 Title Examination and the Closing Process.
Modern Real Estate Practice in Illinois Chapter 23: Closing the Real Estate Transaction.
1 of 14 Real Estate Law, 8th Ed. by Marianne M. Jennings Chapter 16 Closing the Deal.
Real Estate Law An Introduction to the Closing Real Estate Law An Introduction to the Closing.
Buying and Selling Real Property CHAPTER THIRTY-ONE.
Modern Real Estate Practice in Illinois Eighth Edition Chapter 23: Closing the Real Estate Transaction ©2014 Kaplan, Inc.
© OnCourse Learning. All Rights Reserved. Closing the Real Estate Transaction Learning Objectives List the preliminaries to closing List the items.
TITLE CLOSING (CHAPTER 16). Title Closing The final step in the process of transferring title from grantor to grantee Title closing is referred to.
©2011 Cengage Learning. Chapter 10 The Role of Escrow and Title Insurance Companies California Real Estate Principles ©2011 Cengage Learning.
Chapter 13 Loan Origination, Processing, and Closing © OnCourse Learning.
Title Records Chapter 13 D. Zaharopoulos. Title: bundle of rights recognized & protected by law Deed: document used in the transfer of ownership in.
McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved CHAPTER8CHAPTER8 CHAPTER8CHAPTER8 Underwriting and Financing Residential Properties.
Chapter 10 Title Closing and Settlement Procedures New Jersey Real Estate for Salespersons and Brokers By Marcia Darvin Spada Thomson/South-Western Copyright,
Home Buying Process The Mortgage Process Part I. Objectives Explain the Loan Application Process Identify Items Listed on the Good Faith Estimate Identify.
UNDERWRITING AND FINANCING RESIDENTIAL PROPERTIES Chapter Objectives UNDERWRITING AND FINANCING RESIDENTIAL PROPERTIES Chapter Objectives Differentiate.
1 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin CHAPTER 22 TITLE Legal Title Equitable Title.
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved McGraw-Hill/Irwin Slide 1 CHAPTER EIGHT UNDERWRITING AND FINANCING RESIDENTIAL PROPERTIES.
©2011 Cengage Learning Chapter 11 Processing: DOCS, FUNDING, AND CLOSING By Dr. D. Grogan M.C. “Buzz” Chambers.
Florida Real Estate Principles, Practices & Law 38th Edition Linda L. Crawford Copyright © 2015 Kaplan, Inc. All rights reserved.
Chapter 7 ESCROWS AND TITLE INSURANCE 209. I. ESCROWS IN GENERAL 209.
© 2016 OnCourse Learning California Real Estate Finance Fesler & Brady 10th Edition Chapter 10 Processing, Closing, and Servicing Real Estate Loans.
Chapter © 2010 South-Western, Cengage Learning Buying a Home Why Buy a Home? The Home-Buying Process 22.
Understanding The Good Faith Estimate, HUD-1 and Short Sales Presented by: First Place Bank and NorthStar Title Services.
1 Real Estate Claims Guidance Your guide to completing the DD Form 1705 for the Sale and Purchase of Residence.
+ ESCROW 190 (Escrow I) Spring Term Meet Your Instructor Started in escrow in 1992 Commercial, Residential, Builder Independents, Law Firms and.
© 2012 Cengage Learning. Title Closing and Escrow Chapter 15.
© OnCourse Learning Chapter 16 : Title Closing and Escrow.
CH 16 Residential and Commercial Property Financing.
Title Insurance and Escrow 2011©Cengage Learning. All Rights Reserved.
Chapter 13 Title Records Recording Statutes = laws that require the written instruments affecting title to real property to be entered into books of public.
©OnCourse Learning. All Rights Reserved.. Title Closing and Escrow ©OnCourse Learning. All Rights Reserved. Chapter 22.
John Hammond. Title Insurance Overview What is Title? What is Title Insurance? Title Insurance Underwriters Types Of Title Companies in Texas Types of.
© 2012 Cengage Learning. Residential Mortgage Lending: Principles and Practices, 6e Chapter 15 Closing and Delivery; Quality Control and Fraud.
1 © 2015 Fidelity National Title Group. 2 What is the CFPB? CFPB Stands for the CONSUMER FINANCIAL PROTECTION BUREAU It is an Independent Bureau within.
Chapter 08: Underwriting and Financing Residential Properties McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.
7e Contemporary Mathematics FOR BUSINESS AND CONSUMERS Brechner PowerPoint Presentation by Domenic Tavella, MBA Mortgages ©2014 Cengage Learning. All Rights.
REVIEWING ESTIMATED HUD STATEMENTS. What is a HUD statement? A Housing and Urban Development (aka HUD) statement is a document prepared by a closing.
TITLE 101 Introduction A real estate investment is substantial, perhaps your clients largest outlay of money, and therefore, the largest risk. A real estate.
© 2017 SlidePlayer.com Inc. All rights reserved.