We will not accept any funds at the closing over $5,000. If it’s under $5,000, we will only accept a bank certified check.
We require funds to be wired at least 48 hours prior to closing, or, if they would like, we can deposit their personal check into our escrow account. We ask that this is done at least 10 days prior to closing so the check has time to clear.
Our standard policy is to accept a wire transfer. This is because it is more convenient, and other methods may have timing issues that would delay the closing.
What are the borrowers’ responsibilities in a real estate transaction?
The borrower’s responsibilities in the closing will be outlined in the contract. The contract includes provisions and contingencies related to having things done, such as appraisals and inspections. If the buyer is getting financing from a bank, having a pre-approval letter and a final loan approval letter are some common contingencies that are listed in a contract.
At the time that the buyers and sellers request us to handle their closing, they are given a closing organizer that allows them to list important closing dates, such as when the inspection is due, when they have to send the letter to the seller after the inspection, and when the appraisal’s due. It also allows them to record key contact information, such as the name of the company that’s handling the inspection and the bank manager who’s overseeing the loan.
We try to make the process as easy and as stress-free as possible. This is best accomplished by being organized. The seller’s responsibilities are also laid out in the contract. Oftentimes, repairs need to be made after inspection, and the seller needs to respond to these repair requests and provide proof that the repairs are done.
In the case of a commercial property, South Carolina has a due-diligence period that differs from other states. During this due-diligence period, there is not a survey or title report done on the property. Instead, a phase one environmental study and inspection is needed the property and structure. During this period, if for any reason the buyer doesn’t want to go forward with the closing, they only have to notify the seller. In these cases, they walk away and the escrow funds are released. In a residential closing, the escrow amount is usually much less.
The seller also needs to furnish a deed with clear title and make sure that all parties with an ownership interest are essentially conveying that property to the buyer in the contract.
Will I be able to move into the new property immediately after closing?
Once you buy the property, you should have access to your property. If there are reasons you can’t move in, such as repairs, you may not have access to your property right away. Once you leave the closing and the funds are dispersed, it is your property and you have access to it. We strongly advise both buyers and sellers not to close on a property if, for instance, the seller has not completely moved out. When a closing happens, it should be a closed transaction. When both parties leave that day, the property has been conveyed, and all personal property that is not specifically listed to be transferred is out of the home, and the buyer can move in at the minute they leave our office.
Who is responsible if something goes wrong with the property after closing?
Because we act as a settlement agent for the closing process, both parties sign what’s considered a multiple disclosure agreement. This simply states that we are serving both parties, and in any issue post-closing, we are unable to represent either party. We make all documents available to any other attorneys that they wish to hire if there was any litigation. To avoid this, we make sure that when the closing takes place, both parties leave with the transaction finalized. There should be no lingering effects, such as repairs or leftover possessions.
For more information on Funds At Real Estate Closing, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 982-5930 today.