Leave nothing to chance: Tips for smooth closings in 2017
South Florida’s unique challenges in real estate sales also offer unique opportunities to shine, make a nice profit and get ahead of potential problems. Having an excellent closing team on your side can also facilitate the journey and we aim to be just that to our clients – a resource and problem solving partner for you. Here a few tried and tested tips to make your deals stay on track in 2017:
- The CD is here to stay: Or is it? Well, for now we need to keep working with the Closing Disclosure. The good news is buyers know their final loan terms and cash to close three full days before closing and the days of last minute, closing by ambush are long behind us.
- Make sure the title company orders a lien /code violation /open permit search during the inspection period : What is known as the “Lien search” is actually a code/ municipal /open permit search and is a must, even on condos. Most REO closing agents did not conduct lien searches. Those pesky violations can amount tens of thousands if left unchecked, and all lien searches are not created equal.
- Protect your escrow deposit: Sellers can and will claim deposits due to blown inspection deadlines or carelessly handled loan applications.
- Read the condominium /homeowner association documents and estoppel letter carefully: Make sure you read the condo docs and the condo estoppel letter . These documents contain important information regarding rules, maintenance fees, parking space numbers, number of associations and whether any special assessments are in place or being contemplated.
- FIRPTA (Foreign Investment in Real Property Tax Act ) rules changed in 2016: As a general rule, the withholding rate for foreign nationals selling U.S. real estate has increased to 15% unless certain exceptions apply. Plan ahead for a smooth FIRPTA closing and if they plan 90 + days ahead, a seller can apply for a withholding certificate and possibly reduce the mandatory withholding amount prior to closing. Learn more at Does FIRPTA apply to my seller?
- Know your lender and what they are capable of: Financing of single family homes and condominiums continues to present unique challenges to borrowers in South Florida. Work only with reputable, well established lender or mortgage brokers with a proven track record for both closing and turning away deals that cannot be done. Our blog post details a plan of action for borrowers.
Please contact us via email or at 305-271-0100 for more information or for a complimentary contract review.
Happy New Year to all our clients and we wish you a prosperous 2017!
Vice President, Licensed Title Agent and FRP Paralegal
Disclaimer: The Closing Company, Inc. is not a law firm and is not providing legal or tax advice. For legal advice, please consult with a licensed Attorney. For tax advice, consult with a Certified Public Accountant. Hiring an attorney is an important decision which should not be based solely on advertising. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.