Reviewing the Closing Disclosure: Helpful Tips
You’ve reviewed the Closing Disclosure/ALTA with your clients, you get a good night’s sleep and then head over to the attorney’s office to close in the morning – all is well with the world! But then you start to wonder on the drive over, “Was this on there?” and panic sits in. No one wants to show up to the closing table only to have forgotten to include a fee that should have been on there, and feel the pressure of having it taken out of your commission.
Let Reliance Realty Partners be your second set of eyes to help you look for items that may get overlooked!
1. Breathe. Get in a Quiet Place.
Take time to really compare your numbers with the executed contract: Purchase Price, Commission, Closing Costs, Due Diligence and Earnest Money Deposit Funds, Property Taxes and HOA dues.
2. Home Warranty
One of the top things that gets missed on the CD/ALTA is the home warranty and the burden usually falls on you, as the Agent. Make sure that all parties (Attorney, Lender, Buyers, Sellers, Buyer’s Agent and Listing Agent all have a copy of the invoice prior to closing).
3. Any Un-paid Invoices
If repairs are negotiated and agreed upon during the Due Diligence Period or at the beginning of contract, it’s good practice to ask for PAID invoices so you can protect your buyers from any future potential liens that the Seller may have mistakenly not paid for while having repairs completed. Always double check that the invoices you received are PAID and if not, make sure to forward them on to the Attorney so they can get added to the CD/ALTA for the Seller to pay at closing.
4. Your and Your Firm’s Information
Most attorneys are on top of making sure that your firm’s and your information is correct on the Closing Disclosure or ALTA but it never hurts to double check – ensuring your firm’s license number and your license number is correct. After all that hard work, you want to be make sure you get compensated. :)
Taking time to really review the CD/ALTA before closing is crucial. Ultimately, it will be you sitting with them at the closing table and they will be looking at you for the green light on signing documents. The CD/ALTA is one of the most critical documents they will sign that day. Working as a team with Reliance Realty Partners can not only only alleviate some of the stress off of your Buyer/Seller Client, but also you, the Agent.