Helpful Hints for your real estate transaction.
Each closing is different and no set of tips can cover all aspects of a closing. The following tips, however, may cover most many transactions.
- Each party to a purchase transaction should again read the residential sales contract prior to closing. The closing attorney handling the transaction must close the transaction according to the residential sales contract’s terms.
- Your closing may be delayed if the parties revised any term of the residential sales contract and the change is not documented prior to closing. Please make sure all addendums and exhibits are fully prepared and signed prior to closing. Please also make sure each party and Realtor® as well as any lender and our office are provided with a complete and signed copy of any written change in advance of closing.
- Each seller must fully complete, sign and fax to us a payoff authorization form as soon as possible so that we may request a payoff statement from each of your current lenders. Your closing may be delayed if you do not fax the completed request for payoff statement.
- Wired funds take time to arrive and often do not reach us in time for the closing if the lender or the buyer wait to wire funds until the morning of the closing. We cannot complete the closing until the transfer of funds is confirmed in our escrow account.
- All real estate tax pro-rations reflected on the closing statement are based upon the most recent real estate tax bill issued. This real estate tax bill may be for the previous year. The real estate taxes reflected on the current year’s tax bills may significantly differ from the previous year’s real estate tax bills.
- Please bring certified funds to your closing as we may not accept cash or personal checks.
- The closing attorney handling the closing is doing so at the request of the lender and is there to protect the lender’s interest. The closing attorney will not provide legal advice to either the buyer or the seller. Each party should consult their respective attorney if either party believes legal advice is needed.
- Please resolve all contract term disputes, the handling of repairs and questions concerning your loan prior to closing so that your closing is not delayed.
- We will not interfere with your right to read all closing documents before you sign them, but we request that you allow us to provide you with a copy of your closing documents the day before the closing so that the closing may be concluded in a timely manner. The lender, as a general rule, will require you sign all closing documents as they are prepared as the terms are not negotiable once the closing begins and you determine that the closing statement and the terms of your promissory note accurately reflect the transaction.
- Whether you have read the closing documents, the closing attorney will provide a brief explanation of each closing documents before they are signed.
- We will always try to accommodate your schedule, which means you should let the closing attorney know you are pressed for time so that the closing is handled as quickly as possible.
- The seller is required to pay a transfer tax under Kentucky law, unless the residential sales contract provides otherwise. The transfer tax is deducted from the seller’s sale proceeds. The transfer tax is imposed at the rate of fifty cents ($0.50) for each $500.00 of value or fraction thereof, which value is set forth in the deed.
- Please make sure to talk to your loan officer prior to closing to verify the type of loan you are receiving, the interest rate and estimated closing costs. The closing costs reflected on the Good-Faith Estimate of Settlement Charges provided to you at the time you applied for the loan is an estimate based upon facts known to your loan officer and may not have included the premium for owner’s title insurance, condominium dues or homeowners’ association dues.
- The one-time premium for an owner’s title insurance policy will appear on the closing statement, if the transaction is a purchase, unless you declined the coverage in the residential sales contract. The buyer always has the option of purchasing an owner’s title insurance policy either at or after closing, even if the coverage was declined in the residential sales contract, but the premium for the insurance will increase if the policy is not purchased at or within 30 days of closing.
- All parties must bring to closing a valid photo identification, i.e. a driver’s license or passport, or the closing will be delayed until such identification is produced.
- A closing scheduled for either Friday or the last two business days of the month may be delayed as many lenders often schedule closings for these times. There is a greater chance of your closing proceeding more smoothly if you request your lender schedule the closing for early in the morning or the middle of the month.