Disregarding the static in some of the posts that followed your question, purchases can be very intimidating. There will be two factions at the table: sellers and buyers. There may also be many players from both factions: the principals, RE agents, attorneys, brokers, closing agents and worse of all, know-it-all family members who are looking out the best interest of the principals.
Sometimes, purchases as well thought out, everybody being informed and up-to-speed on the "costs and fees" and it goes without a hitch. Then there are the ones where the numbers are just plain wrong, or at least seems wrong to either the seller or the buyer. And you, the poor signing agent with absolutely no power to fix anything, are stuck in the middle because it's "your show".
So, experience plays a big part in purchases. However, you need to get it somewhere. I suggest that you may want to visit a local title company and ask if you can watch and learn at a closing. (In Florida, which is a table funding state, what you are presiding over is often considered a closing, including disbursing of funds at the table!) If you know a Real Estate agent that goes to their closings (which, imo, they should), you may be able to tag along with them too.
Docs at a purchase, if the buyer is financing, will be similar to what you're already aware of. There will probably be some additional ones as well, depending on the county. The seller will also have a handful of docs to be signed, depending on how many have been completed prior to the closing.
The HUD is probably the most critical document that will be placed on the table when everyone is present. Since it lists all the costs of the closing, including all fees to be paid by the seller and buyer, as well as disbursements that must be completed at the table, including the funding of the loan (if the buyers are financing) and receipt of the addition funds due at closing (if any) to match the payoff to the seller, which may or may not be made out to the seller's current mortgagor(s).
The second most important piece of paper will be the Warranty Deed which will transfer the ownership of the property from the seller to the buyer. Typically, only the seller (GRANTOR) needs to sign this, but it is a good practice (and some title companies do this) to verify the names on the deed of the GRANTEE(s) to match their current IDs. In FL, the deed MUST be witnessed by two witnesses not directly involved in the transaction, one of which can be the notary.
Again, depending on what has previously transpired, the sellers "stack" will be very small. If the buyers are financing the purchase, it is advisable to complete the sellers transactions and documents completely, after the HUD is signed by all parties involved. Then start the buyers documents with property related documents, such as final inspection report sign offs, conveyance of warranties, if any, etc. Don't go into the financing aspect right away. After the property stuff is done, you can excuse the sellers from the table. Then you can do the financial stuff with the buyer/borrower. These docs will be familiar already if you have done any refinancing of first mortgages (excluding HELOCs).
Hopefully that'll give you a taste of an "existing" home purchase. New home purchases, or buyers only purchases are a breeze, because you don't have to worry about the seller, and the buyer is usually in a better frame of mind and actually wants to complete the transaction. Again, if they are financing, you will find the same stack of documents that you find in a refi. But, one thing you won't find is an RTC. Purchases are "done deals" once the signatures are applied. It is commitment at the table. So you may have to afford the buyers some extra time in reviewing their terms and conditions of the sale and financing. |
