Snapshot of Settlement from a Washington Post Article
Recently, The Settlement Group’s Myra Keplinger did a little write up for the Washington Post’s Real Estate section on what to expect when you sit in on a settlement. A settlement, also known as a closing, is the time in which both parties to the purchase or sale of a property sign all documents are signed, and title is delivered clear of defects to the new owner.
Myra does a concise job of writing up what you, as the buyer or a first time seller, should be prepared for as you get ready for your settlement day. Note that I have never worked with Keplinger, but I did like how she broke down the process in her article in the Post.
I always like to remind my clients, whether I am representing the buyer or the seller to bring multiple forms of identification with them as well as their check book. Even though they may be wiring funds, or bringing certified funds in the form of a cashiers check to the closing table, sometimes, a check in a small amount is needed to cover incidental costs that the title company or lender did not include on the HUD-1, which should have been reviewed prior to settlement. It is always preferable for the real estate agents to be able to review the HUD-1 settlement document prior to closing; however, sometimes there are discrepancies that are caught by the agent at the closing table!
Top items to “catch” on the HUD-1 at settlement:
- The HOA fees paid out of closing- by the seller
- Termite inspection paid out of closing- by the seller, or sometimes by the agent
- The appraisal fee paid out of closing- by the buyer
- Tax rate adjustments- to the seller, generally
- Correct closing cost credits or seller subsidy- to the buyer
It is always best to have a realtor who knows their craft reviewing your real estate transaction. Having someone on your side will make your transaction that much more simplified! Give me a call if you want to discuss your next move. 512-767-3002