Tag: Selling a house

Closings with Karissa: Contract Best Practices

The heart of any real estate transaction is the contract. It is the meat and potatoes.  Everything that the realtors, lenders and title company need to know to close a deal is in the contract and any amendments or addendums that follow.

Therefore, it is important to have everything that the parties desire within the transaction clearly outlined in the contract . This might include a seller credit or home warranty, Or if certain appliances are to stay or go with the seller. All these things must be included in the contract to set a standard of expectation. It also prevents incidences of: “Well that was my washer and dryer” and the seller running off with appliances the buyer is expecting. Or even worse: “That other lot was supposed to be included.” If it wasn’t on the contract, it won’t get conveyed.

 

Here are some helpful tips to make sure there are little to no issues when writing your real estate contract:

Identify the Real Estate

Know what you are selling. Even if all you have is an aerial from Google Maps with a hand drawn outline of what is intended to be sold and an address. Send that to your title company and ask for a preliminary report. In their search process, they will the correct legal description to include on your contract, preventing issues later with lots or tracts being omitted or included by mistake.

Identify the Parties

A preliminary report will include how the real estate is currently vested. So, if John and Jane Smith want to sell their house, the preliminary report will note that the property is actually owned by John A. Smith and Janice Smith (their legal names) or Jane Smith’s Trust.

The Buyer in the transaction will direct how they want to take title to the real estate on the contract.  The buyer might prefer to take title with first, middle and last names or just first and last.  Or they may request to take title via a trust or a company.  This should all be included on the initial contract or a follow up Addendum.

Set a Purchase Price and Terms

Agree on a purchase price. Once the purchase price is decided, set the terms. Who will pay closing costs to the title company, title insurance and any? Will there be a Home Warranty and who will pay that and how much? Is the Seller willing to offer a seller credit to help with the buyers closing costs? What stays and what doesn’t stay with the property? Never assume that appliances stay, even if it seems logical.

Pick a date to close

Closing dates can be very flexible and easily changed with addendums so long as all parties agree to it. Often contracts will state “on or before” and that just means that at any time before the stated close date in the contract the transaction can be closed if all parties agree. In the current market, unless it is a cash deal, give yourself, your client, and lender time and set closing out 30 to 45 days. Best practice is to avoid closing on the very first or last day of the month as these are the busiest days for closings, and it may be difficult to get the time you want unless you schedule early.

Ask questions

If something doesn’t seem right to you, ask questions! For Buyers purchasing or sellers selling a home this is a huge change and can be very tense. We understand the stress of each transaction and are here to help and answer any questions. Even if they seem trivial, we are happy to assist and walk you through the process, it’s our job!

 

 

 

How to Securely Share Documents to Paperless Closer

With email fraud at an all-time high, it is highly important that any information shared with your title company be transferred securely.  In addition to password protecting emailed documents, the Paperless Closer technology utilized by Tallgrass Title allows for you to securely upload documents to our system.  The process is simple, secure and live in our system as soon as the document is uploaded.  Utilizing this platform is an easy alternative to emailing documents that may possibly contain Non-public Personal Information.  We will have immediate access as soon as you complete the process below.

When you upload a document to Paperless Closer, the system automatically restricts access to it.  No one other than the admin for that Paperless Closer (the title company) can change the restrictions and allow others to access the documents.

If you have never uploaded a document to Paperless Closer before, here is how you do it.

STEP 1: Click on the Add Document Button at the bottom

STEP 2: Click on Choose File to browse and locate the document you would like to upload.

STEP 3: Make sure you name your document in the Description Box. Then hit the Save button.

STEP 4: Once you have saved the Document will appear in the Document Tab List along with any other Documents you have permission to view.

Documents will also be available to us on our system right away.

Paperless Closer requires that the user has a login ID and password.  If you do not have an account, call or email and we will set up login information for you.  Once you have access, you will need specific permission for each file you would like to view.  Finally, uploaded documents are restricted until permission for access to any document is granted.  Every layer is one more way that the client (Buyer, Seller, Realtor, Lender) is protected.

Paperless Closer functions in real time.  This means that as soon as a document is uploaded, anyone with permission can access it.

Additionally, the document can be uploaded securely to this portal from anywhere in the world.  This means that you can upload a contract without delivering to our office.  More and more, folks are uploading their new contracts and requesting our free courier to pick up an earnest money check.  In this scenario, you never have to leave your office or home!

At Tallgrass Title we take our clients’ security seriously.  If you have any questions or need some help with your Paperless Closer, we are only a phone call away!