People who plan on buying commercial or residential properties in Jacksonville should pay close attention to the whole property purchasing process to avoid being scammed. One of the crucial steps in the process is called the real estate closing because it seals the deal and it officially transfers the real estate title of the property to the buyer from the seller. The Jacksonville closing lawyer states this transfer in the sales contract and in this part of the process, the real estate title is turned over to the buyer while the payment for the property is given to the seller.
Commercial real estate closings in Jacksonville, FL require countless requirements which cost an arm and a leg that’s why it’s far more complicated than just buying something at the department store. These requirements and costs come form the sales contract, from local custom and tradition, and from federal, state, and local laws. Real estate closing process requires the expertise of a Jacksonville escrow agent who acts as a third-party between the buyer and the seller. Both the seller and the buyer of the property can trust the escrow agent as stated in the sale and purchase agreement. This part of the purchase process is known as escrow agreements.
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The escrow officer lists all expenses linked with the purchase of the property, the allocation of these expenses between seller and buyer, and the purchase price before the escrow is closed. A copy of this list is then given to the buyer and the seller of the property. Half of the escrow fees, seller’s title policy, broker’s commission, state or local revenue stamps which state the payment of excise taxes, and recording fees for the loan payoff are just some of the expenses allocated to the seller of the property. A fee for the credit report, loan commitment fee, half of the escrow fees, purchase price, recording fee for the transfer of title, lender’s title policy, loan origination fee, and appraisal of the property are some of the expenses allocated to the buyer of the property.
Before closing, the buyer has to make sure that all of the costs and requirements are in order. The buyer should review the title evidence, the seller’s deed, proof that all encumbrances were already removed and dealt with, survey that indicates all of the exact boundaries of the property, results of alterations, repairs, or inspections, and leases connected to the property. Sales contracts give the buyer permission to do all of these things including a final walk-through or inspection of the property. This is usually done with the broker to make sure that the property is well-maintained, that all of the repairs that were agreed upon have been dealt with, and that there were no unplanned significant alterations of the realty.
The purpose of the survey is to let the buyer know about the exact boundaries of the property. The survey also shows the placement of fences, driveways, buildings, and all of the significant landmarks located neat the property. Encroachments to or from the adjoining property are also indicated. More often than not, the buyer depends in the past surveys of the property. However, the title or lender company might look for a new survey of the property. Who pays for the survey is written in the sales contract. The Jacksonville real estate closings attorney prepares the closing statement to make sure that all of the costs, requirements, and agreements are in order. The buyer and the seller inspect the closing statement before signing. The seller needs to make sure that the buyer has the money needed to close the transaction and the buyer needs to make sure that the seller followed what has been agreed upon. If the buyer is just assuming the seller’s mortgage, the buyer needs to acquire a mortgage reduction certificate which shows how much the remaining balance, interest rate, and date of the last payment.
Pre-closing procedures are important because these ensure both properties that all of the requirements are in order. The lender may also opt to have the buyer deposit the payment in an escrow account to settle all of the taxes and insurance for the property as protection if ever they encounter problems.
Once the title commitment is received from the Jacksonville title insurance company (fees will be settled by the seller) and once the title abstract is delivered, the buyer’s real estate lawyer examines it before writing an opinion of the title. This summarizes all deed restrictions, easements, and liens that are in the title record. This will also state that the title is good and that there are no title defects. This, however, does not guarantee that the title is good.
Normally, the seller’s title search is conducted months or in some cases, weeks before the real estate closing. After this, the buyer performs another search of the title record before the closing to make sure that there were no encumbrances added on the title record. Since it takes a while for the record to show new encumbrances, the seller is asked to sign an affidavit of title where the seller swears to the best of her or his knowledge that no changes occurred since the first title search. Should there be any false statement in the affidavit of title, the title insurance company or the buyer has every right to sue the seller of the property for damages.
Real estate closings in Jacksonville, FL can be done face to face, where all of the parties involved along with their representatives meet in one venue, along with their Jacksonville real estate lawyers to exchange and sign all of the real estate closing documents. It can also be done through an escrow agent who receives all the necessary documents and finalizes all of the transfer and settlements. It is imperative that all commercial real estate closings and residential real estate closings are reported to the Internal Revenue Service through the Form 199-S or the Proceeds from Real Estate Transactions. If a business entity will be taking title of the property, the buyer should let the escrow agent know for the proper preparation of the title. The escrow officer then closes all of the transactions and asks the recorder of deeds to keep track of everything. The escrow agent also needs to overestimate all of the expenses that need to be settled on the closing date so there won’t be any shortage of funds.
All of these costs, requirements, and procedures can be overwhelming for people who have not experienced purchasing properties before. If you happen to be one of these people, it is highly suggested that you seek the help of professional title company in Jacksonville, Florida to avoid any problem. One of the highly recommended experts in the field are the folks at Attorneys’ Title Services in Jacksonville, Florida.
They started as a mortgage and law lending firm and eventually evolved into national title providers. With their experience in the field of real estate law, they can easily spot defects in titles, provide escrow services, and issue title insurance. They can also keep up with the ever changing federal regulations and closing requirements that also vary from state to state. They can prevent legal issues and provide legal consultation when the need arises.
Should you wish to set up a meeting with us, you can give us a call them at 904-260-4809. A face to face meeting with us is also possible, you just have to drop by our office at 12428 San Jose Boulevard # 1 Jacksonville, FL 32223. Our office is open from Monday to Friday, from 9:00 AM to 5:00 PM. Or visit our other locations: