Who we represent
We represent you to the extent of ensuring that you acquire good and marketable title to the property. However, we can advise you on only legal questions concerning title to your property, title insurance and the covenants and conditions of your loan documentation.
We represent the lender to the extent of assuring full compliance with its loan closing instructions.
In the event of a dispute between you and the lender, we will not attempt to represent either party.
We do not represent you with respect to the terms of your loan agreement with your lender (i.e., your loan amount, interest rate, conditions for later conversion or refinancing, necessity or amount of mortgage insurance, etc.). Therefore, we ask that you obtain a copy of your closing instructions from your lender a sufficient amount of time prior to closing to enable you to carefully review them and promptly resolve any disagreements or disputes with the lender concerning the terms of your loan.
Because of the numerous difficulties which can arise during the loan processing, we request that you remain in close contact with your lender and with our office. Last minute delays in closing can usually be avoided if you determine in advance what conditions must be met by you.
Dual Representation of Sellers and Buyers
We will frequently be requested by the sellers or their Realtor to prepare the deed of conveyance and lien affidavit for the seller. North Carolina law allows us to do this work if the Buyers do not object. Of course, if a dispute later arises between you and the sellers, we would not undertake to represent either side.
Please let us know immediately if you object to this dual representation.
What services we perform
We are responsible for conducting the title examination of the property, ensuring that the deed of conveyance and the loan documents have been properly prepared and executed, that the closing funds are properly received and disbursed pursuant to the HUD-1 Settlement Statement to be prepared by us and reviewed by you at or prior to closing, that the map of survey (if one is required) is ordered and reviewed by us prior to closing, that the transaction is properly closed and the deed and deed of trust are duly recorded and that the owners’ and lender’s policies of title insurance are issued and delivered in proper form. We will furnish payoffs of the outstanding liens, along with cancellation of lien instructions to the proper creditors, however, in the event the creditor does not comply with our cancellation instructions we will not pursue the creditor without being further retained by the Buyer or Seller.
We will not act as escrow agent for the purpose of holding money for repairs or any other problems which are to be resolved after the closing. It has been our experience that holding money in escrow for post closing issues frequently leads to greater dispute and lawsuits. Your best course of action is to resolve these issues prior to closing.
Documentation
Title Examination
Normally at our office, but we can travel (within a 50 mile radius from our office) to do the closing for an additional fee.
Normally, we conduct a full title examination of the property in compliance with The North Carolina Marketable Title Act. This means that we will search the title for a period of no less than thirty years prior to closing. However, if we find an existing policy of title insurance on the property, we will, with your permission, “tack” to that policy. This means that my title examination would begin with the date and time of issuance of that policy and that we will not certify the status of the title to the property prior to that date. While defects in the title occurring prior to my search period would not be reported by us if we “tack”, they should be covered by the existing title policy, so you should receive the same title insurance coverage as if we had conducted a full title examination.
Obviously, “tacking” enables us to conduct the title examination more expeditiously, and it should not expose you to any increased liability. In addition “tacking” frequently will lead to a reduced rate of insurance from the title insurance company, as they will be insuring a smaller portion of the title.
Unless you immediately instruct otherwise, we will either “tack” or conduct a full title examination in our discretion.
Title examination does not include any investigation into zoning or building code compliance for the property, these are issues for your property inspectors to investigate.
Insurance
We will obtain a policy of owner’s title insurance in your favor and a policy of mortgagee insurance in favor of the lender. You will be required to pay the title insurance premium, which is normally computed at the rate of $2.00 per $1,000.00 of the purchase price unless you are entitled to a reduced rate resulting from the existence of a prior policy covering the property which we tack to. We will do our best to obtain the policies at the rate most favorable to you.
Please let me know immediately if you prefer that we use a particular title insurance company or a particular title insurance agent.
Survey
The lender will require either a current map of survey of the property or a legible copy of any existing dated survey map prepared under seal by a registered surveyor which is attached to a survey affidavit signed by the current owners and certifying that there have been no changes to the lot dimensions or the outer dimensions of the improvements on the property since the date of that survey. If there is not an existing survey, the cost of a new one would be borne by you and would be paid at closing. You will, of course, be given copies of the survey.
It is important that you understand the consequences of not ordering a survey or receiving a survey affidavit attached to a prior survey. Lenders will allow you not to procure a survey because the lender’s policy of title insurance will offer them coverage from loss or damage resulting from a condition which would have been reflected on an accurate survey. Your title policy will not offer this coverage. This means that any problem that would have been revealed on a survey will become your responsibility and liability. Because surveys are an important part of title review, unless otherwise directed, it is our custom to order it, review it and collect the survey fee from you at closing. In the event you direct us not to order a survey we will have you sign a survey waiver and indemnification holding us harmless from any problems an accurate survey may have revealed.
Termite Report
If the property is new construction, the seller should furnish you with a soil treatment guaranty at or prior to closing. Otherwise, the lender will require that the improvements on the property be inspected by a licensed exterminator and a termite report prepared and submitted prior to closing. Normally, the lender will not fund the loan until it has received and reviewed this report. You or your Realtor should order the report and see that it is delivered to me and the lender at least three days before closing so the lender and our office will have an opportunity to review it and have time to resolve any problems that may arise there from.
Homeowners / Flood Insurance
You or your Realtor should ensure that the improvements on the property will be insured against flood, fire and other casualties with a reputable company and that the insurance will be in place as of the date and time of closing. You or your Realtor should order the policy and see that if is delivered to our office and the lender at least three days before closing so that there will be adequate time to review it and have time to resolve any problems that may arise there from.
Closing
Scheduling
If a time and date has not already been set, please contact our office as soon as possible to arrange a closing date and time.
Funds at Closing
From You: Pursuant to State Bar regulations, all amounts due from you at closing must be in the form of either certified funds or confirmed wire transfer of funds. Checks should be made payable to: Law Office Of Scott D. Beasley, P.A. Trust Account
If you plan to pay by check, it should be delivered to us no later than the commencement of the closing.
If you plan to pay by wire transfer of funds, contact our office at least 24 hours prior to closing.
Disbursement of Funds
We will handle all receipts and disbursements of funds made at closing through our Real Estate Trust Account