REAL ESTATE 101:

1
REAL ESTATE 101

• The Closing

William Chip Mackrides
MACKRIDES ASSOCIATES
and
David J. Scaggs
THE GRANGER FIRM
2
Preparation for Closing
The Sellers Disclosure (68 Pa.C.S.A. 7301)
BUYER
Make sure that your client reads it and asks
questions where it raises concerns and
issues. Check to make sure there is nothing left
blank.
SELLER
Make sure that it is provided...over-disclose! Th
e Seller shall be liable in the amount of actual
damages suffered by the Buyer as a result of a
violation of this Law as long as the action is
commenced within two years after the date of
final settlement.
3
Preparation for Closing
The Agreement of Sale Review it!

• Know it upside down and sideways be familiar
  with the terms, special clauses, addendums,
  inspection clauses and endorsements.
• Make sure that all preconditions and
  contingencies have been met (ie. Inspection
  related work, Use Occupancy inspections
  Certifications).
• Follow the Money Check the deposits,
  consideration mortgage commitment...make sure
  it is all there.
• Check all of the time limits...they count!

4
Preparation for Closing

• Make sure that someone has ordered the loan
  payoff information and the tax certifications.
• If an Estate is involved, do you need an Order of
  Court to sell the Property, do beneficiaries have
  to be at closing to sign.
• Title searches review abstract of Title, check
  Judgments and conditions. Obtain copies of and
  read the exceptions listed on the commitment!
• Mortgage Commitment review conditions and
  requirements, make sure that Mortgagee will have
  documents ready for closing.

5
Preparation for Closing

• Make sure your Buyer client has Homeowners
  insurance and a paid premium receipt.
• Who has the Deposit Money, interest?
• Notice of settlement Make sure you know where
  and when Closing will take place, advise your
  Clients accordingly and tell them to bring
  identification and a checkbook, as well as a
  Cashier's check, unexpired warranties and keys,
  etc...

6
Preparation for Closing

• Condominiums 68 Pa. C.S.3407 Certificate
  requirements (Agreement of Sale is voidable by
  the purchaser until the latter of Five (5) days
  after the certificate has been provided or until
  closing)
• Planned Community 68 Pa. C.S.5407
  Certificate requirements (Agreement of Sale is
  voidable by the purchaser until the latter of
  Five (5) days after the certificate has been
  provided or until closing)
• Cooperatives 68 Pa. C.S.4409 Certificate
  requirements (Agreement of Sale is voidable by
  the purchaser until the latter of Five (5) days
  after the certificate has been provided or until
  closing)

7
Presettlement Inspection

• Have a Plan with your Buyer or Seller in the
  event that there are issues uncovered during the
  inspection. Be available prior to Closing to
  speak with your client have contact information
  for the opposing counsel or realtor.
• Be aware of Sellers and Buyers respective
  responsibilities (ie. Fixture issues,
  Undisclosed defects or new damage vs. Normal
  wear tear).
• Escrow Agreements have an Escrow Agt. with you
  or know how to prepare one, provide for fees,
  indemnification and interpleader ("An equitable
  action brought by an escrow holder to have a
  court determine the ownership rights of adverse
  claimants to the money or property that is held
  by that escrow holder").

8
Closing/Settlement

• Have there been any new Assessments to the
  property, any casualty losses or payments,
  condemnations/takings, adverse possession or
  presciptive easement claims, mechanics liens, lis
  pendens, lawsuits, bankruptcies?
• Occupancy of Property prior to or after closing
  inspect, indemnification/hold harmless Agreement.
• Contract contingencies ie. conditions of house
  or property, existence of Tenants, water, sewer
  or environmental tests, subdivision, zoning,
  financing...
• Survey not customarily required, but could be
  issues of property lines or infringements.

9
Closing/Settlement

• Mortgage Documents review them.
• Mortgage requirements and commitment can your
  Buyer satisfy them/ are there issues involving
  Seller assist that might not be acceptable to
  Mortgagee.
• Mortgage satisfactions, make sure they are
  received and recorded (your client would be wise
  to pay you to follow up on this to make sure it
  is actually done).

10
Closing/Settlement

• Title Who is insured? the Mortgagee?, the
  owner?, both?
• make sure all conditions for closing are removed
  and there are no unacceptable exceptions
• have the title abstract "marked up" for the Buyer
  to remove title exceptions and mark the deed and
  mortgage as insured.
• Examine the HUD-1(make sure it has all relevant
  information about the Title Company that you'll
  need in the event of a claim years down the road)
• check the figures, software may not be faulty but
  input could check the charges, don't be afraid to
  ask, compare to estimate of closing costs if
  prepared by title agent
• make sure that Payoff of sellers mortgage(s) is
  evidenced

11
Closing/Settlement

• Check the Endorsements, who and what are they
  for?, are they necessary/required? see Tirbop's
  (Title Insurance Rating Bureau of PA) website for
  a complete listing of Pennsylvania Approved
  Endorsements - http//www.patitleratingbureau.org/
  about-tirbop/tirbop-rate- manual
• Deed check the property description, the names
  (how are they taking title? ie. Joint tenancy,
  Tenants by the Entirety, Tenancy in Common), the
  recital, and the warranty of title...Does it tell
  the right story!

12
Real Estate 101

• IN CLOSING Be careful out there!

THANK YOU FOR YOUR ATTENTION