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Buying a Home: Preclosing Questions and Answers: |
- What do I need to bring to settlement?
a) Photo identification
b) Cashier's check, certified check or cash to cover closing costs
- Why do I need an attorney to handle my real estate settlement?
In Delaware an attorney is required to conduct the settlement and to certify the title.
- In addition to real estate settlements, are there other areas within real estate that you handle?
Yes, our firm will prepare or review a real estate contract for you. We will also handle some landlord tenant matters.
- What is an appraisal?
A professional opinion of the value of the property based on market analysis of comparing the current property against present sales of similar property.
- What is the purpose of an appraisal?
Appraisals are used by the mortgage company as a way to determine how much of a loan to offer. It is what establishes the loan to value ratio.
- Who pays for the appraisal?
The appraisal is generally paid for by the buyer/borrower. The lender hires the appraiser and the fee can be paid outside of the closing or it can be collected at settlement.
- What is a survey?
A survey is the measurement of boundary areas for a specified parcel of land.
- What are the different types of surveys?
There are two main types of surveys. The mortgage inspection plan (MIP), which is all that is required for the Deed. The MIP is an exact layout of the property and lists the measurements and any encumbrances or easements. The other type of survey includes the MIP as well as the placement of physical stakes on the boundary of the property.
- How is a survey ordered?
The attorney will discuss with you the differences in the survey types as well as your needs. The attorney will then take care of ordering the survey. The fee for the survey is not collected until the time of settlement.
- What is Title?
It is evidence that the seller is in lawful possession of the property being sold.
- What is a title search?
It is an examination of public records to determine the history, ownership, and encumbrances that affect ownership.
- What is a defect in title?
It is an unresolved claim against the ownership of property. A defect that is not cleared will prevent the seller from transferring marketable (good) title to the buyer.
- How is a title search done?
The attorney will order the title search and review it for any problems. The cost for the title search is part of your closing costs.
- What is title insurance?
It is an insurance policy that protects the holder from loss sustained by any defect in title.
- What is the difference between lender's title insurance and owner's title insurance?
The lender's policy protects only the lender against any loss due to unknown defects in title The lender will require this type of insurance.
Owners title policy protects you, the owner against any loss due to unknown defects in title. It is highly recommended that owner's title insurance is purchased.
- Why do I need title insurance?
It is a one time premium that protects your most important financial investment, your home.
- What is the difference between a settlement sheet and a HUD 1?
Nothing, these are the same document and the terms are used interchangeably.
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The information on this website is offered for general informational or educational purposes and does not constitute legal advice.
It is our intention to keep the materials current but there is no guarantee they are up to date.
Do not act or rely upon the information without seeking the advice of an attorney. Most of the attorneys in our firm are licensed and practice in the State of Delaware. Although Delaware is the primary practice jurisdiction of our firm, we also have attorneys licensed in other states, including PA, NJ & MD.
© Law offices Doroshow, Pasquale, Krawitz and Bhaya, 2007
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