Understanding Your Home Closing

Buying or selling a home is an involved process. Even if you have been through it multiple times, that may have been over a long period of time.  In addition, there are difference from state to state and county to county. As such, here is some important information about the Naples area.

Customary Seller Expenses

• Title search and closing fee
• Owner's title insurance policy, if applicable, as per the sales contract.
• Process satisfaction of mortgage for existing mortgage 
• Documentary stamps on deed  (e.g. $0.70 per $100 based on the mortgage amount)

• Home Warranty, if applicable
• Property axes prorated to the date of closing
• HOA/Condo dues prorated to the date of closing
• Real Estate Commission

Customary Buyer Expenses

• Title search and closing fee
• Owner's title insurance policy, if applicable as per the sales contract
• Lender (mortgage) title insurance policy
• Endorsements to the lender's policy, if applicable
• Recording fee for warranty deed
• Documentary stamps on the mortgage (e.g. $0.35 per $100 based on the mortgage amount)
• Intangible stamps on the mortgage (e.g. $.002x the mortgage amount)
• Assignment of mortgage, if applicable
• Survey of the subject property, if applicable
• Condominium approval fees and dues, if applicable
• Homeowner's association dues and transfer fee, if applicable
• First year homeowner's insurance and flood insurance, if applicable
• Lender fees, which may include but are not limited to: loan origination fees and points, appraisal fee, credit report fee, tax service fee, underwriting fee, document preparation fee, flood certification fee, prepaid interest, PMI and establishment of an escrow account
• Home Inspections, if applicable

Seller Closing Checklist

• Locate your prior title policy and survey, if possible
• Gather current loan information for each mortgage or line of credit so a payoff can be ordered (Lender name, Loan Number, Lender Phone Number)
• Cancel homeowner's insurance only after the closing
• Order fina reading for all utilities effective the date of closing
• If you are using a power of attorney, have the title company review the document ahead of time. If approved, provide the original document at closing
• Bring your driver's license or government issued photo ID (Military ID, Passport, etc) and your social securit number or green card to closing
• Obtain wire instructions directly from the title company if you are bringing or receiving funds at closing
• Bring keys, garage door openers and any special instructions for new owner to closing.
• If you are married and the property you are selling is your primary residence (homesteaded) your spouse must also sign all documents

Buyer Closing Checklist

• Make arrangements for homeowner's insurance as soon as possible, pay upon acceptance, especially during hurricane season
• Have utilities places in your name effective the day of closing

• If you are using a power of attorney, have the title company review the document ahead of time. If approved, provide the original document at closing
• Bring your driver's license or government issued photo ID (Military ID, Passport, etc) and your social security number or green card to closing
• If the property will be used as your primary residence and you are obtaining a mortgage, your spouse must also sign all documents.
• Obtain wire instructions directly from the title company to send funds to close.

What is title insurance?
Title insurance provides coverage for losses due to defects in the title which occurred prior to your ownership. It is your only protection against things such as unpaid taxes and liens, judgements against the seller, fraud or forgery on deeds and wills, missing heirs, transfers of title by a minor or other issues that might go undetected until after closing, which could jeopardize your ownership and investment.

Why do I need Title Insurance?
Even though a careful examination of public records is made, there may be hidden defects in the title to your property. Some examples of these hidden defects might be fraud or forgeries on documents such as deeds and wills, missing heirs, defective deeds, clerical errors, claims arising because a married person conveyed property without his or her spouse, and transfers of title by a minor. An owner's title insurance policy will protect and defend your investment if any title claims covered by your policy are made against your property for no additional cost to you above the title insurance cost.

What does Title Insurance Cost?
The cost varies because it is based on the purchase price. It is a one-time fee regulated by the State and is paid at the closing. Although you pay only once, the protection lasts as long as you or your heirs retain an interest in the property. There are two types of title insurance policies.
1) The owner's policy protects the buyer up to the purchase price
2) The lenders policy protects the lender's interest in the property, if there is a new loan.

What shoudl I look for in a title company?
You should insist on a title company with a stable financial history and established background in your area. Your insurance has no benefit if your title company is not around when you need it.