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Lights! Camera! Action!
Do your clients know the script? Do they know what to expect? Even if they closed on a home a year ago, do they remember how a closing plays out?
Sometime before a closing, you may find it helpful to go over real estate documents with them (not just the settlement sheet and the HUD). You could have a “closing rehearsal,” so to speak. Your client will appreciate this and it will help insure a smoother closing.
Buyers and sellers are asked to sign documents they may be seeing for the first time that deal with the transfer of real and personal property. Clients should be prepared by knowing ahead of time what the documents look like and what each document accomplishes. Since these documents may not be available until closing, why not have samples? Your title company will be glad to give you generic ones.
Of course there are the settlement sheets, the HUD and closing instructions. Even though the buyer and seller have signed closing instructions at the time of the offer, most title companies will prepare a new one for the closing.
For the buyer, there is the infamous Real Property Transfer Declaration – specifically questions 5, 6, 7 and 9. The Real Property Transfer Declaration can bring the closing to a “cut!” or a “take five!” if the buyer isn’t prepared for these questions.
A good rehearsal packet, for example, should include a sample of the following forms: Real Estate Tax/Assessment Agreement, Water & Sewer Agreement, Warranty Deed, Affirmation of Colorado Residency, Certification For No Information Reporting On The Sale Or Exchange of a Principal Residence, information with respect to Conveyance of the Colorado Real Property Interest and the Affidavit and Indemnity to ABC Title Company. Since not all of the forms listed above will have to be signed by both the buyer and seller, you may want to make up two separate packets.
The bill of sale deals with personal property, and since the seller and the buyer will be asked to sign it, shouldn’t they be prepared? There may also be some forms that are specific to this one transaction. Once again, the title company can have those prepared ahead of time.
If everyone is prepared for the “action” then “it’s a wrap!” will be much quicker and less stressful for your clients.
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