What to Expect at Closing

Ready, Set, CLOSE!

You have made your final walk through, your financing is ready, you have even made the arrangements to move, the only remaining detail is – the closing!  Here is a description of what to expect at closing.

In Tennessee we call the event of transfer of title of the home a “Closing”. Other names for this event are “Settlement” and “Escrow Closing”. At this event the Buyer and Seller sign all of the paperwork necessary to complete the transaction. If you are the Buyer then you sign the paperwork necessary to obtain the loan to purchase the property and you pay whatever the difference is between your loan amount and the purchase price plus closing costs. If you are the Seller then you sign all the paperwork necessary to convey title and you receive the net proceeds. Sometimes the Seller signs some disclosures for the Buyer’s lender.

Closing is typically held at the attorney’s office, although it may occur at your real estate agent’s office or the lender’s office, and sometimes even at a hotel, restaurant or the house itself! At closing all monies for the transaction will be paid to the title agent or attorney and he or she will, in-turn, write all the checks for the transaction; including the checks for the transfer taxes, filing fees, title insurance, real estate commissions, pay-offs for any mortgages, homeowner’s association (if applicable) and all other costs and fees – including the Seller’s proceeds. The title agent or attorney is responsible for making sure the Warranty Deed and Deed of Trust (the security instrument) are correctly completed, executed, and recorded after the transaction.

In middle Tennessee it is somewhat rare for the Buyer and Seller to sit down at the closing table together, the only exceptions are when the parties know each other well. Usually the Buyer meets with the closing agent or attorney first (for about thirty-five minutes) and then the Seller will meet to sign the rest of the paperwork (takes about fifteen minutes). More and more often the Buyer and Seller will close with separate title agents or attorneys. Those two companies will work together, as best as possible, to provide a seamless closing. It is definitely more convenient for both parties to close with the same title agent or attorney but it is certainly not necessary.

The best part about Closing is that by the time this happens, all the work to buy or sell is complete. All that is left is to sign the paperwork – and move! All people signing documents need to bring two forms of Identification according to the US Patriot Act; approved types of identification include, but are not limited to; Drivers License, ID Card, Voters Registration, Passport, Social Security Card. Buyers need to bring any documents the lender has requested as well as the balance of their purchase funds in the form of a cashier’s check or wire transfer of funds. If you are bringing a check please make it payable to McCann & Hubbard.  If you will be sending a wire, please contact your title agent for instructions. Sometimes the dollar amount a buyer needs to bring in can change a number of times before its finalized. Please make sure to contact your title agent a few hours before Closing to make sure you have the correct dollar amount.

Seller’s need to bring termite letters, septic letters, and any other documents the contract states they are to provide. If a husband or wife cannot attend closing be sure to inform the attorney of this fact as early before closing as possible; usually we can take care of this situation with a Power of Attorney (POA), however lenders have to approve a Buyer using a Power of Attorney and that takes a few days advance notice. Only a Power of Attorney provided by the closing attorney or approved by the closing attorney in advance can be accepted at closing. The original POA will need to be given to the attorney at closing and recorded with the Deed. The original will be returned after it has been recorded.

Before you leave the closing table the Buyer needs to be sure he or she knows when the first payment on the mortgage loan will be due. Be sure to keep the copies given you at closing. Approximately one month after closing the Buyer will receive the original recorded Warranty Deed and the Owners Title Insurance Policy in the mail. Be sure to put these documents with the rest of the copies to keep for future reference. If you refinance or sell within the next ten years we can give you a discount on the next title insurance policy you purchase concerning this house.

Approximately five to seven weeks after Closing the Seller will receive back any excess funds from the pay-offs or escrow accounts. Pay-offs always seem high at Closing because the daily interest accumulates through to the actual date of pay-off; which is typically a day or two after Closing occurs. If your Closing is going to occur on or before the fifteenth (15th) day of the month please do not make a payment for that month. The reason is because it takes several days for a loan payment to be processed and your lender might not even realize you have just made a payment. If you have made a payment and then close within a few days there is a strong chance the pay-off amount will not be accurate.

At our firm we strive to give you the best service at the fairest price. Our attorneys are involved in the entire process, from receipt of the Contract, to title review, to processing the documents, to Closing. We pride ourselves on finding and resolving issues before they become problems. We are certain you will be pleased with our services and we look forward to seeing you soon!

Non-Profit

Non-profit laws relate to taxation, the special problems of an organization which does not have profit as its primary motivation, and prevention of charitable fraud. Some non-profit organizations can broadly be described as “charities” — like the American Red Cross. Some are strictly for the private benefit of the members — like country clubs, or condominium associations. Others fall somewhere in between — like labor unions, chambers of commerce, or cooperative electric companies. Each presents unique legal issues. Generally, non-profits and people operating non-profits must comply with all of the same laws which would apply to for-profit businesses. There are exceptions for taxes and some exceptions related to First Amendment concerns.

Call us if you need a consultation to discuss our legal services. We are ready to help you with any of your legal needs.

Contract Law

A contract is a legally-enforceable promise or set of promises made by one party to another. A contract is a legally binding agreement concerning a bargain which is essentially commercial in its nature and involves the sale or hire of commodities such as goods, services or land. Contracts are enforceable in the courts. If one party meets its contractual obligations and the other party doesn’t (“breaches the contract”), the non-breaching party is entitled to receive relief through the courts. For this reason, it is important to have experienced professionals, with your best interests in mind, assist you when either reading or writing up a contract to protect you from any dangerous “loopholes”.

Call us if you need a consultation to discuss our legal services. We are ready to help you with any of your legal needs.

Landlord/ Tenant Law

We have represented both landlords and tenants in both residential and commercial leases. We have simple and complex leases. We can draft provisions for white box, landlord finishing or tenant finishing. We have also drafted long term land leases, mall leases, manufacturing, office and retail.

Estate Planning

Estate planning is not simply the documents your attorney prepares, nor is it the insurance or financial plan you obtain from your financial advisor. Done properly, estate planning encompasses at least the legal and financial elements, but it may include more as estate planning often points out the need to plan for:

  • asset protection for your lifetime and for your heirs
  • retirement
  • providing for a surviving spouse in the event of your disability and/or death
  • providing for a parent or a child with special needs
  • long-term health care costs
  • estate taxes
  • a business succession plan at your retirement, disability and/or death that could involve a family member, business partner, employees or outside sale.

To meet your needs and accomplish your goals, many people find they can benefit from having a team of advisors involved in the process from the beginning. Call us if you need a consultation to discuss our legal services. We are ready to help you with any of your legal needs.
Click here to download or print a copy of the estate planning questionnaire.

REO Transactions

An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. You see, most foreclosure auctions do not even result in bids. After all, if there was enough equity in the property to satisfy the loan, the owner would have probably sold the property and paid off the bank. That is why the property ends up at a foreclosure or trustee sale. As an REO, the bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, if necessary, and may do some repairs. They will negotiate with the IRS for removal of tax liens and pay off any homeowner’s association dues. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property. Whether you are interested in buying an REO property for yourself, or to possibly “flip” to make a profit, it is important to have a legal professional consult and assist you during the buying and closing process to ensure you stay legally protected.

Call us if you need a consultation to discuss our legal services. We are ready to help you with any of your legal needs.

Builder Contracts

We have represented many builders over the years in drafting cost-plus or fixed-price contracts; and have worked with many property owners to draft custom build contracts. Regardless of who owns the dirt we can make sure both parties are protected.

Loan Docs

We have represented a number of local, regional, and national lenders, as well as private lenders, for residential and commercial closings. We can close any transaction and use a lender’s form documents or draft documents from scratch for the circumstances. We have also handled various forms of tax increment financing for businesses building under agreements with local governments.

Probate

Receipt of probate is the first step in the legal process of administering the estate of a deceased person, resolving all claims and distributing the deceased person’s property under a will. A probate court (surrogate court) decides the legal validity of a testator’s will and grants its approval by granting probate to the executor. The probated will becomes a legal document which may be enforced by the executor in the law-courts if necessary. A probate also officially appoints the executor (or personal representative), generally named in the will, as having legal power to dispose of the testator’s assets in the manner specified in the will. It is important to have a legal professional consult and guide you through this difficult process.

Call us if you need a consultation to discuss our legal services. We are ready to help you with any of your legal needs.

Real Estate Development

We have represented landowners, developers, and builders in everything from single lot buy and build, to minor and major subdivision developments, to large multiphase developments. We have drafted Master Deeds, Declarations of covenants and restrictions, and homeowner association Bylaws.