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If you are buying real estate and financing it with a mortgage from a lender we represent, please read the following information
As you know, our office represents your lender in the mortgage loan you have applied for to purchase your new home. We have commenced an examination of the title, ordered tax information from the Collector of Taxes and a mortgage survey plan for the lender's records. When these items are completed and reviewed by our staff, we will notify you to arrange a convenient time to close the loan. We will also advise you of any funds you may need to complete the transaction. You must bring CERTIFIED or BANK CASHIER'S CHECKS made payable to yourself for these funds. In addition, you must bring with you to closing a valid drivers license or passport for proper identification. We cannot close your transaction without same. Please do not forget as this is very important.
Please review the Lender's commitment letter carefully. If special conditions are required, they must be met to the satisfaction of your lender Prior to closing.
Please review the following instructions with respect to additional requirements that must be met prior to closing. Respond to each item applicable to your situation either on this web site or in writing. If you have any questions or comments relative to the loan transaction, please do not hesitate to contact us by telephone or by e-mail.
1. INSURANCE. (a) At the time of closing, please bring with you a fire and extended coverage insurance policy or binder for such insurance in an amount at least equal to the total of all outstanding mortgages on the property or 100% of the replacement cost of all insurable buildings and other improvements on the land, whichever is less. IF YOU ARE GOING TO RELY ON THE 100% REPLACEMENT COST AMOUNT AS SUFFICIENT INSURANCE, THEN THE POLICY OR BINDER MUST STATE THAT 100% REPLACEMENT COST IS IN EFFECT. (b) The insurance policy or binder must name all of the persons who will hold title to the property. (c) The mortgage clause adding the mortgagee’s insurable interest to all policies MUST BE WORDED in accordance with the instructions listed in your commitment letter issued by your lender. IT IS IMPERATIVE THAT THE ABOVE LANGUAGE BE ON YOUR INSURANCE BINDER. Your insurance agent MUST fax or deliver to our office a copy of a binder for such insurance along with a receipt showing that the first year’s premium is paid in full, at least three(3) business days prior to closing.
2. FLOOD INSURANCE. If the premises is located within a specially designated federal (HUD) flood hazard area (Zone A) then flood insurance is a mandatory requirement and you must provide a flood insurance policy application together with a paid receipt for the full first year’s premium at or before the closing. Please note that if the premises is located within zone B, flood insurance is not required although it is highly recommended.
3. RENT LOSS INSURANCE. If this transaction involves a loan on investment premises then rent loss insurance may be required and an appropriate binder to that effect will be required at or prior to closing. You should check with the Lender for applicability of rent loss insurance to you.
4. TITLE INSURANCE. A lender’s policy of title insurance is required for this transaction which we will obtain at your expense. You may wish to purchase an owner’s policy of title insurance, which we can obtain on your behalf. If so, our office can certify the title to a title insurance company. The premium for an owner's policy of title insurance can be quoted to you by calling the paralegal in our office handling your file. We highly recommend obtaining Owners Title Insurance.
5. MANNER IN WHICH TITLE WILL BE HELD. For an explanation of some options for how to hold title to real estate please telephone our office or fill out and return the enclosed form indicating how you would like to take title to the property. This information should be provided to us as quickly as possible since many documents which we prepare require this knowledge.
6. OUR CERTIFICATE OF TITLE. If we are required to certify title to you under any applicable state law our certification to you should not be construed as establishing an attorney/client relationship between you and our office. The services we render are only on behalf of the mortgage lender unless you have retained our office to represent your individual interests as well, and we cannot advise or counsel you relative to the transaction. If you wish to obtain legal advice regarding the quality of the title or with regard to some other aspect of the transaction, you should retain independent counsel.
7. WATER, SEWER AND ELECTRICITY. You should ask the sellers to obtain a final reading of the water meter so that all outstanding water and sewer bills may be taken care of at the closing. If you are purchasing a condominium unit, it is likely that water and sewer charges are included in the monthly condominium fee. In that case, a final water and sewer bill is not required. If electricity is provided by a municipal light plant, the sellers should obtain a final electric reading.