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Information to Closing Agent after Fully Executed Contract:

• It is imperative that along with a fully signed contract that the closer receives e-mail addresses, physical addresses and phone numbers for the Buyers and Sellers. The new lender information is also needed so that there is immediate access to the fees for the preparation of the Good Faith Estimate for the buyers.
• It is very important that the contract accurately reflect the correct spelling of the names of the seller and buyer.  Also, the contract should state how the buyer is to take title, i.e. husband and wife, a married couple, tenants in common, or tenants with right of survivorship.
• Provide the closing agent with a title policy and survey on the property.
• It is extremely important that any contract amendments/extensions are sent to your closer as soon as possible. Any change to buyer(s) names, additional credits from seller to buyer, or any change of closing date, etc. affects your closing.
• The closer will also need information on any current loans on the property. The closer can contact your seller directly but you will need to notify your seller that the closer will be contacting them for their loan numbers and social security number, which is required by most lenders when ordering the payoff statement. Many lenders also require a written authorization from the seller to release a payoff statement.
• Contact the closer and let them know if all the parties be able to attend the closing, if a Power of Attorney will be needed to be prepared or if the closing documents will need to be mailed to the parties.  If a buyer cannot attend the closing, the new lender must either approve the use of Power of Attorney or approve mailing out their documents for signing. Also, if the party is out of the country, they will need to arrange for the acknowledgment of their documents, which will then need to be authenticated.
• Notify the closer if your seller has an out-of-state address and the property being sold is an investment property or second home. Also, inform the closer if the seller is a foreign individual or entity without a taxpayer ID.  If the seller is foreign and does not qualify for an exemption, there is a 10% withholding requirement to the IRS.

What to Bring to Closing:

• All buyers and sellers must bring a valid driver’s license or picture ID or a valid passport. If there has been a change to marital status that is not reflected on the ID, then the party must provide a marriage license or divorce decree as documentation.
• Any funds due at closing must be brought in the form of cashier’s check or wired funds.  Personal checks, money orders, ACH payment systems and Western Union transfers are not considered good funds and are not accepted.
• Seller’s Social Security numbers or Taxpayer ID’s will be needed.

Funding the Closing:

• All original documents must be received from all parties prior to disbursement of funds. This includes Powers of Attorney and any documents mailed to the parties for signature. An email copy of these documents is not sufficient for funding.
• Your closer must be in receipt of all funds due at the time of closing. In most instances, the new mortgage lender requires the closer to email some of the signed documents for their review. They will then give the closer authorization to “fund” the closing by providing them with a funding number. Until the closer receives this number from the new lender, they are not authorized to disburse any funds in the transaction.
• If the closing is scheduled late in the day, the seller may not receive a wire for the closing proceeds until the next business day.  Some banks have a cut-off time for wire transfers.
• If unable to fund a transaction at the time of closing, the closer will have an “Extension of Escrow” signed by all parties. As an agent, you are also required to obtain an Amendment/Extension signed by all parties.
• When your seller is an entity such as a Trust, LLC, Corporation, etc., the closing agent is required to have the proceeds payable to the entity. For example, a closer will not have the proceeds payable to the “trustees”, they must be payable to the actual trust. We have found that many entities, such as a trust or an LLC, do not currently have a bank account under that name. Most likely their bank will not accept a deposit of the seller proceeds into an account held by a different name. So your sellers will need to provide their trust documents or operating agreement to the bank to open an account prior to closing. It is advisable for the seller to contact their bank for its individual requirements.

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