To read this blog in Spanish, click here.
To download the blank checklist for use in your transactions, click here.
To view the Checklist for Buyers, click here.
To view the Checklist for Sellers, click here.
To view the Checklist for Lenders, click here.
To view the Checklist for Closing Agents, click here.
PRE-CONTRACT PROCESS
Clients should get pre-qualified for financing; the lender needs to provide a Loan Estimate which usually estimates all closing expenses.
PRO TIP: Title Companies can provide an estimate of Closing Costs related to title and settlement services, but do not provide lender expenses and fees, nor lender’s escrows, inpounds, and prepaid policies.
Contract Review: It is important for real estate agents and their Clients to have read the Contract and studied its obligations and timelines before signing. We recommend Buyers read a blank copy of the Contract their real estate agent will be using (usually the Florida AS IS FAR/BR Contract before making an offer, when possible, to be ready to make a quick offer when the property they desire is available.
Review the Overview of the Closing Process videos
Chapter 1: What is the Role of the Title Company in the Purchase & Sale Process and Why is Title Insurance so Important? (04:55)
Chapter 2: How does the Closing Process work? What are the Key Milestones, Dates, and Responsibilities that a Buyer needs to know? (14:01)
Chapter 3: Frequently Asked Questions about the Real Estate Closing Process for Buyers and Real Estate Agents (13:39)
PRO TIP: At FOLIO, we are committed to guiding you from Contract to Closing and providing you all the information you need to make a great purchase decision. We invite you to read our Buyer’s Guide to Real Estate Closings to give you a wider scope of knowledge and to be prepared during your transaction. Please let us know if you have any questions and we are happy to clarify them as early as possible.
PRO TIP: If you are purchasing a property in a Condominum, we invite you to read our TIPS AND KEY INFORMATION WHEN PURCHASING A CONDO IN FLORIDA.
Inspection Period
Help Buyers with their Escrow Deposit and obtain Escrow Letter from the Escrow Agent. Ensure timely deposits with Escrow Agent listed on the Contract (usually on the first page). (Most Escrow Agents accept personal checks, money orders, or wire for the First Deposit); check with your Escrow Agent for acceptable payment forms in cases where there is a Second Deposit.
PRO TIP: Second deposits are sometimes negotiated to be due at end of Inspection Period.
Coordinate Physical Inspections with inspector and listing agent; If necessary, help Buyer negotiate repairs or credits with Listing Agent and Seller.
PRO TIP: Ask the Inspector for the benefits of a 4 point inspection and Wind Mitigation Report. These additional reports add a marginal amount of cost to the Inspection Report, but may result in savings for the Home Owner’s Insurance Policy.
If the Buyer will purchase using a mortgage loan:
Ensure a timely application for Financing is submitted. (The Contract will have a timeframe by when a submission for financing is due.) Assist Buyer with any lender requirements.
PRO TIP: Ensure Buyer’s Mortgage Loan application is done in the same name as they would like to appear on title so that your title and mortgage will have the same names. Using the names as they appear on Buyer’s photo ID is a good way to ensure the names are consistent and avoid delays on the day of Closing.
Assist Buyer with application for the Association (if applicable).
PRO TIP: Ensure that the Association Approval is in the name of the title holder. If the title will be held by a legal entity, such as an LLC, the Approval must be in the name of the legal entity. Most condo applications ask for individual information, not corporate entity information. If the title holder is not properly named on the Condo Approval, it can delay closing.
Coordinate the file with the closing agent (title company) and ensure Key Transaction Dates are known by the Client and their lender.
Real Estate Agents must provide the Closing Agent with Broker Commission Instructions. If you need a copy of this form, please contact our office to 786-888-6640.
Contract Due Diligence and Financing Period
Help coordinate Mortgage lender and Listing Agent so that the Appraisal is performed in a timely way and completed within the Contract Timeframe.
Assist Buyer with any additional lender requirements and facilitating association requirements.
Review lien search and estoppel, and understand any title conditions that may delay the Closing.
PRO TIP: At FOLIO, we are committed to guiding you from Contract to Closing and providing you all the information you need to make a great Purchase decision. We invite you to read our Buyer’s Guide to Real Estate Closings to give you a wider scope of knowledge and to be prepared during your transaction. Please let us know if you have any questions and we are happy to clarify them as early as possible.
PRO TIP: If you would like to learn more about the documents the Sellers must execute to properly transfer ownership, we invite you to read our Guide to Seller Documents here.
PRO TIP: For Sellers who are legal entities, check out our list of Required Corporate Documents here.
PRO TIP: For Sellers who are out of the Country and/or may not be able to attend Closing, please read our article “HOW CAN SELLERS EXECUTE DOCUMENTS WHEN THEY ARE ABROAD OR OUT OF STATE?” here.
Continue to Monitor timelines on the Contract.
Pre-Closing & Closing
Ensure that you have provided an official Broker Commission Disbursement form to the Closing Agent to avoid delays in payouts of commissions.
PRO TIP: When a real estate agent provides a credit to their client at Closing, or there are any changes to the original commissions published on the MLS or negotiated with the Clients, the real estate agent must obtain a Broker Commission Letter on official broker letterhead confirming this credit and provide it to the Closing Agent at least 48 to 72 business hours prior to closing to avoid delays in Closing.
Coordinate and perform walk-through with the client and obtain signed Walk Through Form.
Coordinate closing logistics with the Closing Agent/Title Company. A Closing Agent will call for official Closing once the all the terms and conditions of the Contract have been fulfilled, including all title conditions being cleared. If Buyer is obtaining a mortgage loan, closing will be called once the Lender has provided Closing Instructions and a Loan Package to the Closing Agent.
PRO TIP: Mortgage Brokers and Lenders cannot officially call for Closing given, though it is a common practice for Mortgage Brokers and Lenders to set a Closing Date in coordination with the Buyer. We highly recommend that 7-10 days prior to Closing, the Mortgage Broker/Lender and Title Company have a phone call with the Buyer and the Real Estate Agent to coordinate details related to the Closing so that expectations are aligned as closely as possible.
If mortgage financing is applicable, assist client with obtaining lender CD, coordinating with title for final CD & Cash to Close.
PRO TIP: On most transactions with financing, the client has sign the CD at least 3 days before Closing. This CD is provided by the Lender directly to the Client. Sharing this CD with the title company after it has been signed by the Buyer may help accelerate “balancing” between the title company and lender.
When the Escrow Agent is not the same as the Closing agent: Ensure any deposits or other escrowed funds are disbursed to the Closing Agent at least 3 to 7 days before Closing.
Try to create the correct expectations for clients as to when the closing is “final” and when keys can be released and proceeds received by Seller. Any questions that the client may have prior to Closing can be coordinated with the Closing Agent.
Post-closing
Commission checks delivered to their Broker per Broker Commission Disbursement Authorization instructions; must present executed HUD/ALTA to Broker for Compliance.
Usually celebrate with the Client; help client follow up on escrow holdbacks.