INFORMATION TO OBTAIN ON THE PHONE
Clients and the brokers will call to ask about pricing? Before you spit out numbers ask the following questions:
FOR REAL ESTATE PURCHASE/SALE
1. Where is the property? N.Y. or N.J.?
2. How much?
3. What type of property? (Condo/House/commercial/Coop…)
4. Do you have a broker? If there is a broker; Ask client for Broker’s information
5. Does other party have an attorney? If the other party does have a attorney obtain the attorney information
Give attorney the above information to quote the client and to see if he might ask you to obtain more information.
STEP 1: BINDER & CONTRACT
If there is a broker, call the broker and ask them to fax binding/binder agreement.
TIP: - A binder agreement is not a contract. It’s an agreement that
states that the seller and purchaser has intends of entering into a contract. Usually there is a small amount of money of $500.00 or $1,000.00 as a courtesy to show the purchaser’s intend to purchase. – This is called an initial deposit)
The binder should contain the price, deposit amount, initial deposit, deposit a.k.a. down payment, terms of contract, names of parties and parties’ attorneys, etc.
· After we see binder or obtained all the necessary information ask attorney for a quote on the legal fees.
TIP: - When you talk to the clients regarding legal fees always tell them that the quote is only for the legal fees and all other expense is separate
- However, the legal fees is subject to change, if there are any other extra work that we need to do, the price may increase or decrease as little as fifty dollars to a hundred or more, depending on the situation.
- Never emphasize the increase and decrease part.
· For Sale: We need to prepare a contract if the broker doesn’t have one. Ask seller or see binder to obtain the contract information.
· For Purchase: Ask OPA to fax a contract. Have attorney review contract.
· For Condominium: Always ask the broker to obtain the offering plan and the financials at the very beginning.
· For NJ: Finish up repair issues before the closing
For PURCHASE: Make an appointment with client to come in and review
Tell client to bring in check for the deposit
For SALE: Make an appointment with client when we receive the executed
contracts from Purchaser. Ask client to bring in documents from client’s purchase if they still have the documents such as back title, deed, survey, etc.
TIP #1: Executed only means signed. In this case, it means when we receive contracts signed by the Purchaser with the deposit check. The term “FULLY EXECUTED” means that the contract is signed by all the parties and the contract is in full affect.
TIP #2: Back Title = Copy of Client’s title report when he/she
purchased the property.
Survey = A blue print that accurately measures the
size of the property and the land
Deed = Documents that indicates the name of the title
holder of the property
STEP 2: MORTGAGE
On the contract a.k.a. Agreement of Sale or on the rider a.k.a. Amendment to Contract, look for a paragraph that mentioned about mortgages.
The paragraph the talks about the mortgages is called the “MORTGAGE CONTINGENCY”
Mortgage Contingency is an amount of time given to the purchaser to obtain a mortgage commitment letter. (It’s usually thirty days after contract is fully executed.) If the Purchaser can’t obtain a Mortgage Commitment letter by the given date, the seller without cause can cancel the contract. However, the purchaser will lose the right to his deposit money at the worst-case scenario if a proper notice is not given to the OPA.
Whether we represent the seller or the purchaser, make sure you mark up your calendar.
Let’s say Contract was fully executed on June 1, 2005 and the contract states that the purchaser has 30 days to obtain a mortgage. Mark up your calendar for June 30, 2005.
If we represent Purchasers:
You are going to start calling the client two weeks before the deadline
If we represent the Sellers:
Call Purchaser’s Attorney on the day of the due date.
This is an important date. If you miss this date it will cause major problems, such as the mentioned earlier, like the purchaser losing the deposit money at the worst-case scenario.
You usually follow up with the status on the Mortgage Commitment with the Clients but sometimes it’s easier to work with the mortgage broker. In order for the Mortgage commitment letter you will probably have to fax them a copy of the contract after we have a fully binding contract.
STEP 3: TITLE REPORT
Title report is an insurance that insures the purchaser of the title of the property. Free of Liens, Violations, Mortgage, etc.
If we are representing the seller, the buyer’s attorney needs to send us a title report and a commitment letter accordingly to the contract; If there is a mortgage contingency date the buyer’s attorney needs to send us a commitment letter on or before the due date
If we are representing the Purchaser, you need to order title when there is a definite sense that the clients can purchase. Usually when the client obtains a mortgage commitment letter. If it’s a cash closing meaning, client will not obtain any mortgages, then order title right away. Some occasions you are going to have to order the title even if the client does not have a commitment letter. Such occasion is when the closing date is only a month away from the date the contract is signed. However, before you order title, you must inform the client that the client is responsible for any fees that may apply even if the contract is canceled due to bank.
STEP 4: Preparation for Closing
Schedule Closing Date:
- As long as buyer’s mortgage is ready and there are no problems with the title report, schedule a closing
- When we represent the seller and if the buyer closing date is delayed for 2-3 weeks, ask attorney for a “Time of Essence Letter”
- In order to schedule a closing for the buyer, you need to notify the title company, seller’s attorney, Mr. Idouchi, the bank attorney or settlement agent, and the client. Ask client for the dates and times they are available. See if attorney is available on that particular dates and times. Then ask the seller’s attorney and the lender’s attorney’s schedule. When everyone time schedule matched, confirm the closing.
- After the closing is confirmed, then tell attorney that the closing is scheduled. He will probably start working on numbers or figures which you eventually need to know how to do.
- The figures you need to obtain for all the cases are the following:
1) Title Charges (Seller/Buyer/Lender)
2) Broker’s Commission Bill
3) Payoff Letters (if any)
4) Property Tax verification
5) Common Charges (if any)
6) Misc. Fees (if any)
- You will learn how to do this as time progresses.
- NJ – Obtain CCO from the brokers before the closing
- Review the HUD-1 Settlement Statement
- Closing date whether client is flexible with the dates
Preparation of Closing Documents:
- Prepare the deed and etc. documents related to the sale (attorney will prepare all the documents)
Clients and the brokers will call to ask about pricing? Before you spit out numbers ask the following questions:
FOR REAL ESTATE PURCHASE/SALE
1. Where is the property? N.Y. or N.J.?
2. How much?
3. What type of property? (Condo/House/commercial/Coop…)
4. Do you have a broker? If there is a broker; Ask client for Broker’s information
5. Does other party have an attorney? If the other party does have a attorney obtain the attorney information
Give attorney the above information to quote the client and to see if he might ask you to obtain more information.
STEP 1: BINDER & CONTRACT
If there is a broker, call the broker and ask them to fax binding/binder agreement.
TIP: - A binder agreement is not a contract. It’s an agreement that
states that the seller and purchaser has intends of entering into a contract. Usually there is a small amount of money of $500.00 or $1,000.00 as a courtesy to show the purchaser’s intend to purchase. – This is called an initial deposit)
The binder should contain the price, deposit amount, initial deposit, deposit a.k.a. down payment, terms of contract, names of parties and parties’ attorneys, etc.
· After we see binder or obtained all the necessary information ask attorney for a quote on the legal fees.
TIP: - When you talk to the clients regarding legal fees always tell them that the quote is only for the legal fees and all other expense is separate
- However, the legal fees is subject to change, if there are any other extra work that we need to do, the price may increase or decrease as little as fifty dollars to a hundred or more, depending on the situation.
- Never emphasize the increase and decrease part.
· For Sale: We need to prepare a contract if the broker doesn’t have one. Ask seller or see binder to obtain the contract information.
· For Purchase: Ask OPA to fax a contract. Have attorney review contract.
· For Condominium: Always ask the broker to obtain the offering plan and the financials at the very beginning.
· For NJ: Finish up repair issues before the closing
For PURCHASE: Make an appointment with client to come in and review
Tell client to bring in check for the deposit
For SALE: Make an appointment with client when we receive the executed
contracts from Purchaser. Ask client to bring in documents from client’s purchase if they still have the documents such as back title, deed, survey, etc.
TIP #1: Executed only means signed. In this case, it means when we receive contracts signed by the Purchaser with the deposit check. The term “FULLY EXECUTED” means that the contract is signed by all the parties and the contract is in full affect.
TIP #2: Back Title = Copy of Client’s title report when he/she
purchased the property.
Survey = A blue print that accurately measures the
size of the property and the land
Deed = Documents that indicates the name of the title
holder of the property
STEP 2: MORTGAGE
On the contract a.k.a. Agreement of Sale or on the rider a.k.a. Amendment to Contract, look for a paragraph that mentioned about mortgages.
The paragraph the talks about the mortgages is called the “MORTGAGE CONTINGENCY”
Mortgage Contingency is an amount of time given to the purchaser to obtain a mortgage commitment letter. (It’s usually thirty days after contract is fully executed.) If the Purchaser can’t obtain a Mortgage Commitment letter by the given date, the seller without cause can cancel the contract. However, the purchaser will lose the right to his deposit money at the worst-case scenario if a proper notice is not given to the OPA.
Whether we represent the seller or the purchaser, make sure you mark up your calendar.
Let’s say Contract was fully executed on June 1, 2005 and the contract states that the purchaser has 30 days to obtain a mortgage. Mark up your calendar for June 30, 2005.
If we represent Purchasers:
You are going to start calling the client two weeks before the deadline
If we represent the Sellers:
Call Purchaser’s Attorney on the day of the due date.
This is an important date. If you miss this date it will cause major problems, such as the mentioned earlier, like the purchaser losing the deposit money at the worst-case scenario.
You usually follow up with the status on the Mortgage Commitment with the Clients but sometimes it’s easier to work with the mortgage broker. In order for the Mortgage commitment letter you will probably have to fax them a copy of the contract after we have a fully binding contract.
STEP 3: TITLE REPORT
Title report is an insurance that insures the purchaser of the title of the property. Free of Liens, Violations, Mortgage, etc.
If we are representing the seller, the buyer’s attorney needs to send us a title report and a commitment letter accordingly to the contract; If there is a mortgage contingency date the buyer’s attorney needs to send us a commitment letter on or before the due date
If we are representing the Purchaser, you need to order title when there is a definite sense that the clients can purchase. Usually when the client obtains a mortgage commitment letter. If it’s a cash closing meaning, client will not obtain any mortgages, then order title right away. Some occasions you are going to have to order the title even if the client does not have a commitment letter. Such occasion is when the closing date is only a month away from the date the contract is signed. However, before you order title, you must inform the client that the client is responsible for any fees that may apply even if the contract is canceled due to bank.
STEP 4: Preparation for Closing
Schedule Closing Date:
- As long as buyer’s mortgage is ready and there are no problems with the title report, schedule a closing
- When we represent the seller and if the buyer closing date is delayed for 2-3 weeks, ask attorney for a “Time of Essence Letter”
- In order to schedule a closing for the buyer, you need to notify the title company, seller’s attorney, Mr. Idouchi, the bank attorney or settlement agent, and the client. Ask client for the dates and times they are available. See if attorney is available on that particular dates and times. Then ask the seller’s attorney and the lender’s attorney’s schedule. When everyone time schedule matched, confirm the closing.
- After the closing is confirmed, then tell attorney that the closing is scheduled. He will probably start working on numbers or figures which you eventually need to know how to do.
- The figures you need to obtain for all the cases are the following:
1) Title Charges (Seller/Buyer/Lender)
2) Broker’s Commission Bill
3) Payoff Letters (if any)
4) Property Tax verification
5) Common Charges (if any)
6) Misc. Fees (if any)
- You will learn how to do this as time progresses.
- NJ – Obtain CCO from the brokers before the closing
- Review the HUD-1 Settlement Statement
- Closing date whether client is flexible with the dates
Preparation of Closing Documents:
- Prepare the deed and etc. documents related to the sale (attorney will prepare all the documents)
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