Introduction

  • How and When Does Escrow Begin?

Chapter 1: An Overview of the Closing Process

  • What Is Escrow?
  • How Does Escrow Start?
  • What Does the Escrow/Closing Agent Do and for Whom Does the Officer Work?
  • What Does the Title Company Do?
  • What Does the Attorney Do?
  • What Does the Real Estate Agent Do?
  • Who Are the Other Parties to the Closing and What Do They Do?
  • How Does the Escrow/Closing Agent Get Paid?
  • What Happens at the Closing?
  • What Is the Timetable for a Typical Closing?

Chapter 2: Opening Escrow

  • What’s Involved in Opening Escrow and Starting the Closing Process?
  • How Should I Select my Closing Agent?
  • What Information Will I Need to Open Escrow?
  • What Should a Real Estate Purchase Agreement Include?
  • How Will Contingencies Written into the Contract Protect Me?
  • What Are Common Contingency Clauses?
  • How Do I Remove A Contingency?
  • What Is a Real Estate Transfer Disclosure Statement?
  • What Questions Must The Seller Answer?
  • Are There Any Other Disclosures That Have to Be Made?

Chapter 3: The Title Search

  • What Happens Right After Escrow Opens?
  • How Is a Title Search Performed?
  • How Long Does a Title Search Take?
  • What Kinds of Things Does the Search Reveal?
  • Who Pays for the Title Search?
  • What Should I Do with the Preliminary Title Report?
  • Might Someone Order a Preliminary Title Report on a Property Even if It’s Not in Escrow?
  • Should I Inspect the Property Again After Receiving the Report?
  • What Are CC&Rs?
  • What Is an Easement?
  • What Are Liens and Encumbrances?
  • What Is a Lis Pendens?
  • Is It Possible to Take Title Subject to Certain Exceptions?
  • What Is an Attorney’s Certificate of Title?
  • How Can I Work with the Title Officer to Resolve Title Issues?

Chapter 4: Holding Title: Your Options and Why They Matter

  • Why Should I Be Concerned About Holding Title?
  • What Are the Most Common Ways to Hold Title?
  • Sole and Separate Property
  • How Do Unmarried Couples and Domestic Partners Typically Hold Title?
  • What Is A Domestic Partnership?
  • May I Change the Way I Hold Title After Escrow Closes?
  • In What Other Ways Can People Hold Title?
  • Limited Liability Company (LLC)
  • What’s a Living Trust? Can I Hold Title in a Living Trust?

Chapter 5: The Building Inspection and the Termite Inspection

  • What Type of Inspections Should I Order?
  • What Is a Termite Inspection and What Protection Does It Give?
  • Who Requires the Termite Inspection?
  • Who Orders the Termite Inspection?
  • How Do I Find an Inspector?
  • Why Do Termite Reports Cause Problems at Closing?
  • How Can a Seller Avoid Outlandish Termite Repair Bills?
  • Who Pays for Termite Clearance?
  • What Happens When the Termite Report Can’t Be Cleared Before the Close of Escrow?
  • How Can I Negotiate a Lower Price or Get Out of the Deal if I Object to the Inspection Reports?
  • Can a Buyer Get Insurance Covering Other Potential Building Problems?

Chapter 6: Loans and Financing Basics

  • Why Is Financing So Important?
  • Why Should I Shop Around for Financing?
  • How Much Will a Lender Lend Me?
  • How Should I Prepare to Get a Loan?
  • What If the Appraisal Is too Low?
  • How Should I Go About Shopping for a Loan?
  • Who Will I Be Dealing with Regarding My Loan?
  • What Information Do Institutional Lenders Generally Require?
  • How Can I Speed up the Approval Process?
  • What Can I Do if I Have Bad Credit?
  • What Is a FICO Score?
  • How Can I Be Sure Nothing Will Go Wrong with My Loan Application?
  • Can I Still Qualify for a Loan if I Am Self-Employed?
  • Is There a Loan for a First-Time Homebuyer?
  • How Do I Get Prequalified for a Loan?
  • Helpful Hints to Consider When Taking out Loans
  • How Can I Be Sure That I Will Get the Locked-in Interest Rate on My Loan?
  • How Might I Calculate How Much Cash I’ll Need to Close My Purchase?
  • What Loan Fees Do Lenders Charge?
  • What Is an Escrow Impound Account?
  • Is There a Way to Save on Financing and Loan Fees?
  • How Do I Know Whether the Lender Is Computing Everything Correctly?
  • Are There Any Other Disclosures That the Lender Is Required to Give Me?
  • Is There a Typical Timetable for a Loan?

Chapter 7: Loans and Financing: Advanced Topics

  • What Types of Loans Are Available from Institutional Lenders?
  • Conventional Loan
  • VA Loan
  • FHA Loan
  • How Does a Variable or Adjustable Rate Loan Work?
  • What Other Financing Arrangements Are Available Through Institutional Lenders?
  • What Is a Construction Loan?
  • What Is a Jumbo Loan?
  • What Is a Note?
  • Instructions for Transferring a Promissory Note Secured by a Deed of Trust
  • Why Is a Mortgage Deed or a Deed of Trust Used?
  • How Does a Foreclosure Work?
  • What is A Short Sale?
  • What is a Deed in Lieu of Foreclosure?
  • What Is a Due-on-Sale Clause?
  • How Can I Tell Whether a Loan Is Assumable?
  • How Do Assumptions Work?
  • What Is “Subject-to” Financing?
  • How Does an Assumption Differ from a “Subject-to”?
  • What Is Private Mortgage Insurance and How Can It Help Me Buy a House?
  • When Does the Lender Submit Escrow Instructions?
  • With the First Loan Approved, Where Might I Obtain Additional Needed Financing? Should I Consider Seller Financing?
  • What Is a Wraparound Loan?
  • Why Haven’t Lenders Challenged the Use of Wraparounds?
  • What Laws Have Passed Since the Wellenkamp Decision That Affect Due-on-Sale Clauses?
  • How Does a Loan Approval Proceed?
  • Why Should a Request for Notice of Default Be Recorded?
  • Are There Any Other Ways to Finance a Property Purchase?
  • Are Land Contracts “Creative Financing”?
  • Are There Any Guidelines for a Land Contract?
  • When I Pay off a Loan, What Fees Must I Pay?
  • Is There Anything I Can Do to Avoid Paying the Reconveyance Fee?
  • Is There Anything I Can Do to Avoid Paying a Prepayment Penalty?
  • What Does a Prepayment Clause Look Like?
  • How Do I Get the Payoff Information?
  • How May I Obtain Short-Term Financing to Help Me Through Escrow?

Chapter 8: Title Insurance

  • What Is Title Insurance?
  • Why Should I Buy Title Insurance?
  • How Long Does Title Insurance Remain in Effect?
  • Who Obtains Title Insurance?
  • Who Chooses the Title Company?
  • What Is an Owner’s Title Insurance Policy?
  • What Is an ALTA Title Insurance Policy?
  • How Much Insurance Will I Need?
  • How Are Title Insurance Premiums Determined and How Frequently Is the Premium Paid?
  • Are All Rates Alike?
  • Are Title Insurance Rates the Same on New Construction?
  • Is There Any Other Way to Save on Title Insurance?
  • What Should I Look for in My Title Insurance Policy?
  • What Is the Torrens Title System?
  • Grant Deeds and Quitclaim Deeds
  • What Is a Warranty Deed?
  • How Do Condominiums and Cooperatives Differ and Do Co-Op Shareholders Buy Title Insurance?
  • Is Title Insurance Available for Mobile Homes?
  • Is Title Insurance Available in Most Countries ?
  • What Is Time-Share Ownership and How Does the Time-Share Buyer Get Legal Claim?

Chapter 9: Adjustments to the Final Selling Process: Debits, Credits, and Prorations

  • How Can I Figure Out Who Owes What at Closing?
  • How Do I Read The Final Closing Statement ?
  • How Do Prorations Work?
  • How Is Interest Prorated?
  • How Are Rents Prorated?
  • How Is Fire Insurance Prorated?
  • How Are Maintenance Charges and Homeowner’s Dues Prorated?
  • Will Utility Bills be Prorated?
  • How Is an Impound Account Adjusted?
  • What Is a Documentary Transfer Tax and How Is It Calculated?
  • When Are Real Estate Commissions Earned and How Are They Handled in the Closing?
  • How Do I Calculate the Amount I Need at Settlement ?

Chapter 10: Handling Tax-Deferred Exchanges

  • How Do Exchanges Work? Who Benefits from Exchanges? And How Are Their Escrow Closing Instructions Drafted?
  • Can Any Closing Agent Handle an Exchange?
  • What’s a Delayed Exchange? What’s the Starker Case?
  • May I Acquire a New Property and Set Up an Exchange Before I Have a Buyer for My Old Property?
  • What Is an Improvement Exchange?
  • How Might I Convert a Conventional Sale Already in Progress into an Exchange?
  • How Do I Find Someone Willing to Do an Exchange with Me?
  • When Must I Report My Tax Deferred Exchange?

Chapter 11: Signing Your Paperwork

  • What’s Involved in Drawing up Closing Escrow Instructions?
  • What Happens After Escrow Has Taken Its Normal Course?
  • What Papers Will I Have to Sign as a Buyer?
  • What Papers Will I Have to Sign as a Seller ?
  • When Does Personal Property Become “Real Property”?
  • Is There Anything More I Can Do to Protect Myself?
  • What Happens if One of the Principals Isn’t Available to Sign the Papers?
  • Which Escrow Papers Should Be Notarized?
  • Buyer’s and Seller’s Checklists
  • What Happens if Something Goes Wrong at the Closing?

Chapter 12: The Closing and WhatHappens after Closing

  • What Happens after I Have Signed All the Necessary Closing Documents?
  • What Is “Recording” and Why Is It Necessary?
  • What’s the Difference Between Transferring Title and Transferring Possession?
  • How Are the Funds Disbursed?
  • What Happens after the Recording of Documents and Disbursements of Funds?
  • What Documents Does Everyone Receive?
  • Which Items on the Closing Statement Are Tax-Deductible?
  • What Happens When Escrow Has to Be Canceled?
  • “Can Mediation Save The Deal?”
  • How Can the Buyer and Seller Avoid Losing Interest on Deposits Held in Escrow When a Dispute Arises?
  • Is There Anything Special About Buying Property from a Foreigner?
  • What Is CAL-FIRPTA?
  • How Does the Tax Reform Act of 1986 Affect Closings?
  • What is the Tax-Exclusion for the Sale of My Home?
  • Where Can I Go to Complain About My Escrow or Title Insurance Company?
  • What if I Have a Complaint Against My Lender?
  • Laws that Protect Individuals in Their Dealings with Financial Institutions
  • Who Regulates the Escrow Impound Accounts Collected by My Lender?
  • Are There Any Other Questions That Might Be of Concern to Me as a Buyer or Seller after the Closing?
  • How Do I Begin Looking after My Property Investment?
  • What Important Things Should I Remember About Escrow and Closing?
  • My Final Closing Statement

Appendix A: List of Forms

Appendix B: State-by-State Guide to Real Estate Closing Practices in the U.S.

Appendix C: Directory of Closing and Escrow Resources on the Web

Appendix D: Glossary of Real Estate Terms