Real Estate Agent

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 REAL ESTATE AGENTS

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

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.

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.

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.

Real Estate Agents must review the Closing or Settlement Statement with their clients to ensure accuracy. This includes double-checking that any credits, commissions, and prorations (including from possible tenants) are correctly calculated. This is an excellent opportunity for the Real Estate Agent and their client to ask questions and receive clarifications not just of closing costs or cash needed to close, but, for example, as to how future property taxes will be charged or how any possible rental deposits being credited should be disbursed when current tenants leave.

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.

Coordinate and perform walk-through with the client and obtain signed Walk Through Form.

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.