Buyer/Borrower

Roles & Responsibilities During the Closing Process

BUYER/BORROWER

Congratulations! You have an Executed Contract…Now What?!

Next steps after a Contract is signed by both Buyer and Seller

1. Please send the fully executed contract to welcome@foliotitle.com with the following information:

a) Mobile phone number and email of your client
b) Mobile phone number and email of the other agent
c) Name, Mobile phone number, and email of the lender or mortgage broker (if applicable)
d) Association contact information (if applicable)

2. Once we receive this information, our Onboarding Team will open the transaction in our Closing System within the next 6 to 24 business hours and assign a Processing & Closing Team to start working on your file immediately.

3. You will receive an email from our Onboarding team with the following:

a) A link to fill out a form with the information we need to begin processing the file. Delays in this information may delay the closing
b) A timeline of Key Contract Dates
c) An introduction to your Processing & Closing Team
d) Wire Information and Wire Fraud Prevention Tips

4. We offer our clients and their real estate agents a personalized Onboarding experience with the following services:

a) A personalized Whatsapp Chat Group for each transaction (optional)
b) Onboarding videos and checklists for all parties
c) A follow up Introduction call with the Processing and Closing team to answer any questions the clients or real estate agents may ask

5. If the Buyer is obtaining a mortgage loan, we prepare and send a preCD with the estimated closing costs to the mortgage loan originator within 48 business hours of opening the file in our system.

6. Our team will order the title search and lien search within 24-48 business hours of opening the file in our system.  Surveys and Estoppels are usually ordered after the Inspection Period and sometimes after the Appraisal results. If you have any questions as to these orders or their timing, please let us know.

7. We ask that if you believe there will be any changes to the Closing Date, including a Closing that is earlier than the Contract Closing Date, you let us know as soon as possible as this may affect the timeline of key documents that expire and this may incur unnecessary additional expenses. For more information about the differences between the Contract Dates and Expected Dates, please click here.

SUMMARY OF THE CLOSING PROCESS

All videos can be watched in 2x speed. 

Chapter 1: What is the Role of the Title Company in the Purchase & Sale Process and Why is Title Insurance so Important? (04:55)
In this video, we will explore the role of the title company in the real estate closing process in Florida, how to protect your real estate investment with title insurance, and we will learn about the role of the Escrow Agent.

Chapter 2: How does the Closing Process work? What are the Key Milestones, Dates, and Responsibilities that a Buyer needs to know? (14:01)

Get to know each stage of the closing process: Inspection period, Due diligence and financing, Pre-closing, and Closing. Learn what to expect in each stage and the most important dates and responsibilities to keep in mind during the transaction. 

Chapter 3:Frequently Asked Questions about the Real Estate Closing Process for Buyers and Real Estate Agents (13:39)

During the closing process, clients have understandable concerns and questions, which is why in this video, we review some of the most common questions related to the Closing Process:

• Closing logistics – Where and when will we sign our closing documents?
• How does the escrow deposit work and where do I send the money?
• What is a condominium approval? Why is it so important and how does the process work?
• What is the Role of the Lender, Real Estate Agent, and Title Company
• What Information is required to Close an on-time and stress-free transaction?

These videos are presented by Ricardo Teran, co-founder and Director of Business Development of FOLIO Title.

If you have any additional concerns, please do not hesitate to contact us at support@foliotitle.com, visit our website www.foliotitle.com, or write to us at +1 (786)-888-6640.

CLOSING PROCESS CHECKLIST FOR BUYER

To download the blank checklist for use in your transactions, click here.

PRE CONTRACT PROCESS

Buyers should get pre-qualified; lenders and the title company can provide an estimate of Closing Costs, which would later be confirmed by the Lender in a “Loan Estimate” once the Loan Application is submitted.

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.

Many residential transactions in Florida use the Florida FAR/BR AS IS contract form.  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.

 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.

Contract Inspection Period

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;

Ensure requested information and documentation is provided to the title company/closing agent in a timely manner to the Closing Agent.

PRO TIP: Watch this short video to understand what information is required so you can be proactive and prepared.

Perform Physical Inspections with a licensed and certified inspector, and get an Inspection Report. Decide to accept, reject, or negotiate anything related to the physical condition of the property.

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 mortgage financing is applicable:

Ensure a timely application for Financing is submitted. (The Contract will have a timeframe by when a submission for financing is due.)

PRO TIP: Ensure your Mortgage Loan application is done in the same name as you would like to appear on title so that your title and mortgage will have the same names. Using the names as they appear on your photo ID is a good way to ensure the names are consistent and avoid delays on the day of Closing;

Gather the information required by the Lender; Sign the lenders disclosures & pay for appraisal;

Obtain the “Loan Estimate” to see the estimated closing costs from the Lender:

PRO TIP: Ensure your lender has a quote from FOLIO Title and incorporates it into the Loan Estimate. For a quote, please reach out to us at quotes@foliotitle.com or call us to 786-888-6640.

If there is an association:

Apply for association approval

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.

Begin the process of quoting Homeowners Insurance

PRO TIP: Many times, a Mortgage Loan Originator will estimate the cost of Homeowners Insurance based on comparable properties. However, given the fluctuations in the Home Insurance Markets in Florida, it is a good idea to understand the real cost of insuring the property as early in the process as possible to get a more accurate picture of the possible total monthly payment the Borrower will be making.

Contract Due Diligence and Financing Period

Review lien search, survey, estoppel, and title commitment

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.

If mortgage financing is applicable: Obtain conditional loan approval from the Lender; ensure necessary documentation and requirements are provided to the lender in a timely way

If there is an association: Follow up with Association application process; ensure that condo approval is in the name of the title holder.

Pre-Closing & Closing

If mortgage financing is applicable: Finish fulfilling any lending conditions, including binding insurance; Obtain and sign Closing Disclosure (CD) from the lender.

PRO TIP: The Final Cash to Close, or amount required from the Buyer at Closing, will be sent by the Title company to the Buyer once the Lender and the Title Company have “balanced” the numbers. Sometimes Buyers would like to send funds earlier than the Closing Date, in which case, please call our office for an estimate of the final Cash to Close. Estimates will not always be possible.

Obtain Association approval *in the name of the title holder*

Perform the walk-through and sign final Walk Through Form

PRO TIP: We do NOT recommend confirming moving plans for until *after* the Closing Agent has called for Closing, all Closing documents are executed, and Seller proceeds have been disbursed. There are many reasons why a Closing may be delayed and many of those reasons are outside the Control of the Buyers, Real Estate Agents, and the Title Company. Therefore, if you have a particular need to move by a certain date, we will do our best to accommodate you, but we highly recommend all moving plans are not confirmed until Closing is finalized.

Send cash to close to the Closing Agent by Same-Day Wire Transfer (usually day of Closing or day before)

PRO TIP: Please note that FOLIO Title only accepts wire transfers for Cash to Close. Please read our *very important* tips to avoid falling victim to wire fraud here.

Coordinate Closing logistics with Closing Agent

Execute lender package and closing documents (Final HUD/ALTA, Closing Affidavits, etc). NOTE: Some lenders send funds before Closing; others have funding conditions and send it after copy of lenders package is provided. Some lenders require funding authorization to disburse; in these instances, a copy of the lender package must be provided after the loan package is executed before closing can occur.

PRO TIP: Borrowers do not sign conveyance documents. 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. 

Post-closing

Our team will provide all the Closing documents you will need, included the executed Warranty Deed and Final HUD/ALTA to Association

PRO TIP: The recorded Warranty Deed will be available once the County Recording Office records and publishes the recorded documents on the County Clerk of Court’s website.  Some counties take less than 48 hours and other counties more than 2 business weeks to publish recorded documents in the Public Records. Sometimes it may take longer to reflect a change in ownership in the Property Appraiser website (which is a different website than the County Clerk of Court.)

You will receive electronic copies of the Recorded Warranty Deed and the Owner’s Title Insurance Policy within 90 days after Closing.

Additional Resources

To Understand the Key Activities and Responsibilities of Other Roles in the Transaction, please see our Closing Process Checklists

• • Closing Process Checklists for Sellers
  • Closing Process Checklists for Real Estate Agents
  • Closing Process Checklists for Title Companies
  • Closing Process Checklist for Lenders
• Buyers Guide to Real estate Closings – Click Here
• Policies Related To Transactions Where Seller’s Are Subject To Firpta Withholding – Click Here
•  Tips and Key Information When Purchasing a Condo in Florida – Click here
• Understanding Closing Costs – Click here