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Tag: home closing

  • Six Most Common Post-Closing Issues and How To Avoid Them

    Six Most Common Post-Closing Issues and How To Avoid Them

    There are few things that are more exciting than getting the keys to your new home. What you typically picture as a happy and exciting moment, can quickly turn into a stressful and frustrating mess thanks to a variety of situations that can transpire after closing. In “industry-speak” we call these post-closing issues.

    As much as we are optimists, we’d like to set the stage with both buyers and sellers.  Something will go wrong upon closing. Something will undoubtedly bother you when you close. Whether it’s garbage that the seller failed to dispose of and left behind, or the dirty toilet in the main floor powder room.  Our best advice is just be prepared, put it all in perspective, and realize that not everyone see things that same that you do.

    While there may be thousands of different ‘post closing’ situations, here are the top six we’ve encountered with our buyers or sellers. The good news is that some of these can be avoided through proactive communications and some due diligence.

    Damage to Property

    You get your keys and arrive at your new home. While the place looked spectacular during showings, now that the seller’s furniture and possessions are gone, you notice damage to the drywall. Maybe you go to the basement and see a big puddle beside the hot water tank.

    Damage to property are unfortunately common closing issues. As a typical closing takes 60-90 days from signing the purchase agreement, a lot can change in the condition of a property.  Damages that may not have been visible during showings all of a sudden appear now that the property is vacant. Sometimes even minor things like removing artwork from the walls can leave nail holes and damages that may require repairs after closing.

    post-closing damage

    How to handle:

    First, you need to know that these types of things are expected, and damages can occur intentionally or unintentionally, especially during moving. It is important to put things in perspective as to how significant these damages are before you put your time and stress into rectifying them.

    When you take possession of a property, make detailed note of any unexpected damages and if possible, take clear photos of the damaged area(s). Submit the notes and photos to your lawyer and real estate agent.  Please note that submitting these photos doesn’t guarantee that the damages will be rectified, but at the very least, you’d be starting a process where the seller’s lawyer will be notified, and the seller be given the opportunity to respond to your claims.

    Surprise! You’ve got Rented Items

    You move in and a month later, you receive a bill to pay for your hot water tank rental. Problem is, you had no idea it was rented. You didn’t sign a rental contract or even consider the possibility when you bought the place.  Now you’re stuck with monthly bills you did not plan on having.

    It is the job of the seller, and the listing agent, to disclose if there are any items in being sold with the home that are rented such as a hot water tank (or in some cases, air conditioners, furnaces and other appliances).

    There is a section within the standard Agreement of Purchase & Sale that specifies which items, if any, are rentals. Barring the inclusion of a rental item in this section, then all items and equipment are deemed to be free and clear of any encumbrances.

    So, what happens when you take possession of your new home, and find out that the hot water tank is rented? Or the furnace? Or the air conditioner?

    Well, the seller is on the hook for the contract, but will the seller now buy out the contract after the fact? What if they refuse or blame their real estate agent for not including it in the listing and/or the agreement of purchase and sale?

    How to handle:

    Before you sign an agreement of purchase and sale, ask your real estate agent to verify any rental items with the seller’s agent (who should double-check with their seller). While there isn’t a sure-fire way to avoid misrepresentation, it never hurts to double check. If there are rental items, you can request to see those agreements and/or contracts and can require the seller to pay off any contracts prior to the closing date.

    During the closing process, your lawyer typically also double-checks with the sellers’ lawyer to see if there are any rental items or contracts, however, the reliance is still on the seller to represent the facts as sometimes rental items may not be registered on title.

    If you find out about a rental item that was not disclosed after your closing, reach out to your lawyer immediately.  Your lawyer will likely reach out to the seller’s lawyer and advise of possible next steps.

    Appliances not working

    You can’t wait to cook your first meal on your new home’s gorgeous stainless-steel stove. You flip the switch and nothing happens. The stove won’t even turn on.

    Before you get frustrated and opt out for take-out food instead, remember that this happens all the time and could just be a matter of poor timing. It can also be an appliance that wasn’t in good repair to begin with.

    The agreement of purchase and sale will typically include a condition where the seller warrant’s that appliances and home systems will be in good working order upon closing.  This clause can vary in cases where you are buying a property as-is or the seller is aware of an appliance not working or excludes it from the agreement at the time of negotiation. 

    How to handle:

    Your purchase and sale agreement should include a condition that allows you to revisit the property a certain number of times prior to closing (usually 2-3 times is the norm we see). We suggest booking the last revisit within a couple of days of closing and using that revisit as an opportunity to briefly inspect the property, including the operations of major appliances. Also, if you had your home inspected, check the inspector's report for that appliances.

    If you notice anything out of the ordinary such as an appliance not working, inform your lawyer as soon as possible.

    Another option to protect yourself at closing and after closing is purchasing a home warranty policy. There are several affordable options on the market that will protect your appliances and home systems in case of breakdown or replacement, giving you peace of mind.

    Sellers Still On The Property After Closing

    Yes, it happens.  You open the door to your new home only to discover the seller is still in the midst of packing their belongings.  In the meantime, you might have your moving truck outside, charging you by the hour.

    Whether an honest mistake or just poor planning by the seller, in these situations, both lawyers must be made aware so that the property gets vacated as soon as possible.

    How to handle:

    Closings typically happen between 3-5pm in the afternoon.   Once funds have been exchanged and the property’s title is in your name, your lawyer will release the keys.   Sellers are notified to plan to vacate their properties by the afternoon, but things like forgetting to book the elevator or your seller’s moving truck not showing up sometimes do happen. 

    If you do find yourself in a situation where the seller has not left the property, keep your cool and try sorting out the situation with them.  They can also be in the same stressful situation that you are in.  While the situation wasn’t what you expected, having a calm and rational discussion may be the best way to deescalate a situation.

    The Case Of The Missing Chattels

    You move in and notice the seller removed all the curtains and curtain rods.  You are in total shock as you were under the impression that the curtains and rods come with your home.

    When negotiating your agreement to purchase, it is important to understand the difference between a chattel and a fixture.   A chattel is an item of tangible movable or immovable property except real estate and things (such as buildings) connected with real property.  An example of a chattel is a stove, fridge or a laundry machine.

    A fixture in real estate is an item that is fastened or attached to the property like a curtain rod, a light fixture, or even a bathtub (to be extreme). Fixtures are part of the property and should come with it when the buyer takes possession.

    There is a section on the agreement of purchase and sale that says “chattels included.”  That’s because all chattels are deemed to be “excluded” unless specifically included.

    There is a section on the Agreement that says “fixtures excluded.”  That’s because all fixtures are deemed to be “included” unless specifically excluded.  It is excluded unless it is specifically included in the Agreement.

    A curtain rod is a fixture.  It is screwed to the wall.  It is affixed.  It meets the rudimentary test of “nailed, screwed, or glued.  This curtain rod is included unless it is specifically excluded in the Agreement.

    How to handle:

    Keep in mind that your agreement needs to be as specific as it can and you need to pay special attention to the chattels and fixtures sections before you sign.  If you negotiate for certain chattels to be included, list them out and be specific down to the location (for example: upright freezer in basement, shelving unit on the first floor family room, etc.). 

    If you take possession and notice a chattel or fixture missing, consider its importance (it may not be worth the effort or stress to chase down a $20 lighting sconce that was removed) and inform your lawyer as soon as you can.

    Garbage and/or Junk Left On Property

    post-closing damage

    This is the number one complaint we get from buyers by far.  The sellers may have left some of their possessions, garbage or junk inside or outside the property.

    As a general rule, the buyer expects the seller to leave the property free and clear of any possessions or garbage.  However, it happens all the time.  Whether it is garbage left on the lawn days ahead of scheduled garbage pickup or the seller leaves some possessions behind.

    How to handle:

    Consider the severity of the situation and inform your lawyer if necessary.  Your lawyer will work with the seller’s lawyer to potentially rectify.

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  • Insurance: Everything You Need To Know When Closing

    Insurance: Everything You Need To Know When Closing

    Whether you’re closing on a home or refinancing your mortgage, you are going to need to look into various insurance products.  Some of these are going to be mandatory, others are optional, and some are just common sense to have or look into.

    Here are the various types of insurance products you will encounter when closing your home or mortgage transaction:

    Home Insurance

    A home insurance policy covers your home and its contents in various situations such as floods, fires, break-ins and personal liability if someone gets hurt on your property.

    If your property has a mortgage, your lender will likely require that you have the appropriate coverage and that you submit proof of your coverage prior to closing your transaction.

    While home insurance costs can add up, there’s really no good reason to leave your biggest asset unprotected.

    When shopping for home insurance, you can use a broker who would typically shop around for the best rates with the insurers they work with, or you can obtain a policy directly from an insurance company.

    Be sure to read the fine print before you purchase a policy as they are not all the same and coverages of certain items and situations can vary among insurers.  Your mortgage lender may also have requirements for minimum coverage levels which you’ll need to consider when shopping around for a policy.

    Costs vary depending on coverage, home value and additional factors

    Condo Insurance

    Your condo corporation will typically carry a commercial policy to cover common areas and the shared exterior and interior aspects of the condo. In most cases, this policy does not cover your individual unit and your contents. You’ll need a personal condo policy to protect your unit.

    For example, if a homeowner in a unit above you has a flood and the water causes damage to your unit and belongings, the home insurance policy of both parties will likely cover the claim.

    Like home insurance, most mortgage lenders will consider having a policy for your unit as mandatory and you will require to produce proof of coverage prior to closing (often referred to as an “insurance binder”).

    The cost of condo unit insurance varies depending on coverage, condo value and additional factors

    Renter's or Tenant's Insurance

    If you plan to rent your property or rent part of it, your tenant’s contents and liabilities may not be covered, even if you have a homeowner’s policy in place on the property.  

    For example, if your property is tenanted and there’s a flood, your home insurance may cover the cost of repairing your property, but if your tenant’s possessions such as their TV or couch suffers damages as a result, your insurance company will likely not cover these items.

    While tenant insurance is not mandatory in Ontario, as a landlord, it is a good idea to require your tenants to obtain their own insurance to cover their possessions and personal liability while living in your unit.  Landlords typically incorporate such requirements as part of the lease agreement.

    The cost of tenants insurance may vary with the level of coverage needed, but in most cases, it is an affordable monthly payment.  

    Title Insurance

    Your property’s title is legal proof that you are its owner. It describes your rights to the land and any limitations like giving your local phone and power companies legal right to construct, repair, replace and operate wires on a section of your property.

    Title insurance is a policy that protects the homeowner and lender against future issues that may arise with the title of the property.

    For example, you purchased a property with a shed that was built by the previous owners. It is later discovered that the shed partially sits on the neighbour’s property.  In this case, a claim can be made to correct the situation.

    Title insurance also protects against existing liens against the property’s title (e.g. the previous owner had unpaid debts from utilities, mortgages, property taxes or condominium charges secured against the property), title fraud, and errors in surveys and public records.

    Most lenders will require you to obtain a policy to insure your title as the policy also protects the lender’s interests in having a marketable property.  Learn more about title insurance here.

    Unlike usual insurance premiums that are paid monthly or annually, Title insurance is a one-time premium based on the value and location of the property.

    Mortgage Default Insurance

    Mortgage default insurance (also known as “mortgage insurance”) is mandatory on all mortgages with a down payment of less than 20 percent of a home’s purchase price.

    This insurance protects lenders, but also allows qualifying buyers purchase a property with as little as 5% down payment.   

    Mortgage default policies typically costs between 2.8% to 4% of the mortgage amount. This cost can be rolled onto the mortgage so it’s not an out-of-pocket expense.

    Life, Disability and Critical Illness Insurance

    While it is difficult to imagine, when taking on a mortgage, it is a good time to consider unfortunate scenarios whereas you may not be able to pay your lender and may put your home at the risk of foreclosure.

    While life or disability insurance may not have been a topic you thought about in the past, it may be worthwhile considering a policy to protect you and your family in a worst-case scenario. 

    Life insurance is not mandatory, but a good idea to look into.  Disability and critical illness policies are also options that would supplement your income should you not be able to work due to a disability or a critical illness.  These products are also typically offered through your employer’s benefit plans.

    Costs can vary depending on type, coverage, and personal factors. 

    Home Systems Warranty

    You moved into your new home in the summer.  Come fall, you turn on the furnace and discover it isn’t working.  You’re devastated when find out that you need a new furnace at a cost of $4500.  

    In reality, the systems in your home are complex and can be expensive to repair or replace.  There are several options that will cover major home systems and even appliances should they break down or require repair. 

    While absolutely optional, if you are looking to reduce the risk of expensive repair bills during the course of your home ownership.  There are various options that will have you covered and sleeping well at night.

    Costs vary depending on the coverage you are looking to get and the home’s age.

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  • COVID-19 and Residential Real Estate Closings

    COVID-19 and Residential Real Estate Closings

    Will COVID-19 impact residential Real Estate closings?

    As the disruption caused by coronavirus (COVID-19) continues to spread, it may become increasingly essential to quarantine a large portion of the population to counter the spread of the virus as we’ve already seen happen in China, Italy, Iran and other countries.

    Given that we are in the midst of a very busy spring market, closing residential real estate transactions may face unexpected challenges that may cause ripple effects for buyers and sellers. 

    These challenges can range from not being able to attend a lawyer’s office to sign documents to disruption for professionals such as appraisers, lawyers and lenders.

    Am I Still Obligated To Close?

    Most residential real estate transactions in Ontario require the buyer or seller to close the transaction by a specific date.  Contrary to some commercial real estate contracts, residential transactions do not usually include a force majeure clause that could potentially excuse a party from performance if the failure to perform is due to an event beyond the party’s control.

    Therefore, in most cases, you will still be obligated to close your transaction despite any circumstances.  

    If you are considering buying or selling a home in the near future, a specific COVID-19 clause can be included in your agreement to allow for potential delays cause by potential disruption to lenders or the land registry.

    Can Closing Be Delayed As a Result of Quarantine?

    Closing can be delayed if an amendment to the agreement of purchase and sale (APS) is signed and agreed upon by all parties. If you foresee the need to postpone or change your closing date, the sooner amendments can be signed by both parties, the better.

    What If I Cannot Make It To Sign Documents?

    To close your transaction, you will have to attend a lawyer’s office to sign your closing documents. Some lawyers may offer at-home signing, which may not work in the case of a full quarantine.  

    At Deeded, we have implemented advanced video signing technology to allow you to sign closing documents from home. We will make this option available for free for qualified clients. Please contact us at hello@deeded.ca if we can help.

    What If The Land Registry Closes Down?

    Most title insurance policies include Gap Coverage that insures both purchasers and lenders against losses due to intervening registrations on title between the date of closing and the date of registration.

    This means that in the event that online registration is no longer available, or land registry offices experience delays or closures due to COVID-19, transactions can close on time and funds and keys can be released to the respective parties.

    What Else Should I Know About COVID-19 Impact Residential Real Estate Closings?

    The escalating situation with the spread of COVID-19 may impact other parts of your transaction such as your movers, utility companies or your condo property management. 

    It is best to be proactive in planning your closing and contacting the various parties involved to ensure contingency plans are in place should the closing be impacted by the COVID-19 disruption.

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  • Reimagining The Home Closing Experience

    Reimagining The Home Closing Experience

    Reimagining the home closing experience

    A long conversation over lunch sparked what later became Deeded.  

    I had recently closed on a new home and was still shaking my head after being charged thousands in fees I did not anticipate.  My co-founder’s closing went much smoother, but his excitement of buying his first home quickly shifted into misery when he spent 4 hours in traffic going to the lawyer’s office to pick up the keys for his new home.

    After speaking with dozens of recent home buyers and sellers, we quickly learned that our home closing experiences weren't just isolated cases. The most anticipated part of every real estate transaction was being done with it, yet the closing is, by nature, the most complicated and slowest part of the proceedings. A good home closing experience was defined by consumers we spoke with as "uneventful" as opposed to the exciting, happy and memorable moment - as it should be.

    So, what do a couple of crazy entrepreneurs decide to do?  We decided to build a company can deliver the home closing experience that we wished we had. 

    We spent weeks summarizing all the feedback we heard from consumers and speaking to dozens more, including lawyers and top industry executives.  We noted and prioritized common pain points and spent a few more weeks trying to come up with solutions to each pain point.

    While it is still way early to declare victory or claim we've solved anything, we couldn’t be prouder of of the foundation we’ve built. 

    “Closing is like a black box – you never know what’s going on”

    By far, the top concern we heard from home buyers and sellers was a lack of communication and transparency during the closing process.  Many claimed the process shut them out and kept them waiting.  Consumers didn’t know if any work was being done on their deal.  They were clueless as to what is expected of them or if any issues arose during closing. 

    In some professions not hearing anything can mean good news (think your doctor, after your physical).  However, for those who are in the midst of the most significant transaction they’d ever make, not hearing is a cause for stress and anxiety.

    Today’s real estate customer has an amazing number of tools at hand to make the process easier and faster for them.  They can search for home online, compare prices or review amazing virtual tours. Outside of Real Estate, we can track our Uber, Pizza delivery or Amazon order by the minute.  Yet when it comes to closing their real estate transaction, as one of our interviewees called it, it is often a “black box”.

    Building a Transparent Home Closing Experience

    We built a technology platform that lets everyone involved in the transaction stay on top of all the steps involved and always know what’s next. 

    Closing a Real Estate transaction involves collaboration between several professionals – each with an important role to play.  Through each step, the client and professionals helping them (such as their Realtor, mortgage broker or lender)  receive real-time notifications and can even log into a personalized portal to see details that are relevant to their role in the deal.

    Everyone involved in the deal knows the exact progress (in real-time) and there's never a question as to what's next. With every step intuitively laid out for clients, their stress levels subside and they feel engaged in the closing process.

    Our goal is that you’ll never feel like your transaction is in a "black box".  Instead, an open and transparent experience engages the home buyer or seller and guides them throughout the entire process.

    The Deeded dashboard keeps everyone in the deal up-to-date.

    “I saw the bill and was just speechless”

    We know that buying or selling a home is an expensive proposition.  In fact, according to a CBC article, Real estate commissions, land transfer taxes, legal costs and fees for inspecting and surveying homes make up almost two per cent of Canada's economy. Fees can add up to tens of thousands of a home owner's hard-earned dollars. 

    Now imagine walking into a Starbucks, ordering your drink, and when you get to the cash register, they tell you it’s going to be $200.  I know that sounds absurd, but without understanding exactly what you’re on the hook for in terms of legal fees and disbursements, you’re just asking to be shocked!  

    Numerous buyers and sellers we spoke with experienced some degree of “sticker shock” when they finally saw their legal bills at closing.  While many firms and the Law Society of Ontario have made strides to standardize the way prices are advertised for Real Estate closings, consumers still find pricing confusing.

    Since an everyday homebuyer is unaccustomed to the ins and outs of real estate purchases, consumers often don’t know what they need included in their legal services. Extra fees can easily add up at closing, leaving consumers surprised and sometimes shocked.

    Pricing You Can Understand and Anticipate

    We felt that consumers deserve transparency and understand what they are going to pay for closing their deal. 

    We published our pricing calculator on our website.  It tells you exactly what will be included in your fees and what to anticipate as charges. 

    We also know not every deal will require the same amount of time (and hence costs), so we committed to letting consumers know of any anticipated additional costs the moment we know.   

    “I’m self-employed.  Taking a day off work means no income for the day”

    Almost every Real Estate transaction ends with a signing appointment.  This is the time where you will meet with your real estate lawyer and sign the required documents to make your purchase, sale or refinance transaction official.

    Between work, family, travel and hobbies, we all lead busy lives.   We heard many examples where buyers and their spouse needed to take time off work and commute to the lawyer’s office during business hours to sign their deal.  One couple had travelled 150km each way to meet with their lawyer.  The ordeal took an entire day and cost them thousands in lost wages.

    Our at-home signing is a standard part of our service.  This means you can sign when you want and where you want, including evenings and weekends.

    Virtual Home Closing Experience

    Just as entire industries are being transformed by the next generation of services that are built around the convenience of consumers (think Uber Eats, Amazon or Instacart), we felt that no consumer in this day and age should ever have to be inconvenienced to close their Real Estate transaction.

    Technology and new legislation have recently made it possible to close a transaction over video conferencing. It isn't only simple and convenient, but our technology also makes it paperless and secure. All you need is access to a device with a webcam and a high-speed internet connection. There's no printing, scanning and couriering of documents (and hence no costs of these add-on expenses either - we pass those savings to our clients)

    At Deeded, virtual signing is a standard part of our service.  This means you can sign when you want and where you want, including evenings and weekends.

    “I left a voicemail, and another one 2 hours later… crickets!”

    One of the Realtors we spoke with described how their client, a first-time buyer nearly ended up in the hospital right before closing.  They had received news of a delay from their bank and were trying to reach their lawyer…for two days!  As the stress levels rose, the health of the client got the worst of them to the point their could not easily breath.

    Without any ill intent, their lawyer and his staff were so busy that they didn’t have time to check voicemails and return calls.

    The Chef Never Picks Up the Phone, The Host(ess) Does

    We know and appreciate that things can get very busy.  There’s a reason why when you call a restaurant, the chef doesn’t pick up the phone – the host or hostess does.

    Our dedicated home closing advisors serve as the front line for clients and industry professionals.   Their job is to proactively reach out to clients, respond to any inquiries, and most importantly, be the critical conduit that can escalate matters to the lawyers and staff. 

    We also know that deals rarely get done during business hours. Offers are often negotiated on evenings and weekend and questions can arise at any time. That's why we've made our team available on evenings and weekends and they are reachable by phone, text or email.

    At Deeded, we are on a mission to build a seamless, transparent and human closing experience.  However, we feel like we are just scratching the surface.

    For us, everything starts from the experience we’d like to achieve for our clients – the same experience we wished we had when we closed our last home.

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  • Real Estate Legal Documents – What You’ll Need to Sign at Closing

    Real Estate Legal Documents – What You’ll Need to Sign at Closing

    Before your transaction closes, you'll meet with your Real Estate Lawyer at a signing appointment to review and sign your closing real estate legal documents. This is the time when you'll sign the required documents to make your purchase, sale or refinance transaction official.

    The excitement of getting to the finish line tends to make us all a little impatient or uninterested in the fine-print legal details.  While your real estate lawyer will explain the purpose of all real estate legal documents and what they mean in plain English, we put together some further insight into what to expect when you are at the signing table. 

    Charge (A Fancy Name For A Mortgage)

    If you are taking out a mortgage to buy your new home,  the Charge/Mortgage is the document registered against your home in the Ontario land titles registry.  

    When reviewing the Charge/Mortgage, you may notice in the “Chargor(s)” section reference to whether or not you are a spouse. The reason for spousal information being includes, even if they might not be on title of the property is because a spouse must provide his/her consent to the mortgage.

    Consent To Also Act For Your Bank

    When your transaction involves a mortgage, your lawyer will generally act for both you and your mortgage lender (or lenders in some cases) to save you the cost of paying for two lawyers.

    While this isn’t the norm to the rules in most other legal transactions, where each side retains their own representation, an exception to the rule permits a lawyer to act for both parties only if he/she is given permission from both parties to do so.  

    When signing real estate legal documents for the purchase of your new home, you may come across a document called “Consent to Act…”.  By signing this document, you give your lawyer permission to act for both you and your bank.

    Acknowledgments And Directions

    Acknowledgments and directions are documents signed by you and used by your lawyer as written confirmation that you have reviewed certain documents and that the information is accurate. A direction states that you authorize and direct your lawyer to take certain action. Your lawyer may require you to review and sign an acknowledgment and direction before your mortgage or the transfer of title is registered. Your lawyer may also require you to review and sign a direction for the transfer of funds from your bank to be held in trust by him/her until the amount is paid to the home seller.

    Transfer of Title

    The Transfer of Title is a document that is registered with the Ontario land titles registry.  In a nutshell, this document directs the transfer of interest in the home.

    Joint Tenants or Tenants In Common

    If you’re buying your home with other people such as a family member or a spouse, you may be asked if you’d like to be registered as “Joint Tenants” or “Tenants in Common”.

    With joint tenancy, you co-own 100% of the home with the other people on title and no one person owns a specific share of the home. For example, spouses may purchase a home together as joint tenants because, in the event that one of the spouses passes away, 100% of the ownership of the home then automatically belongs to the surviving spouse.  

    On the other hand, with tenancy in common, you own a specified share of the home and may be able to transfer or sell that share to others. Upon death, the share of the home will pass to the tenant in common’s heirs.  Often times in co-ownership or investment properties the owners are considered tenants in common.

    Statement of Adjustments

    The statement of adjustments likely gets the most questions during the signing appointment.  Put simply, a statement of adjustments summarizes the monies that will be exchanged, less any adjustments (deductions in the favor of the buyer or seller). 

    The statement of adjustments is similar to your monthly bank statement, as it has a list of various debits and credits with a balance at the end. In the buyer’s statement of adjustments, the debits represent amounts already paid, such as the deposit, while the credits include the purchase price of the home and any fees or utilities the seller has prepaid. The total amount in the credits column (purchase price + prepaid items) minus what’s in the debit column (the deposit) is what you owe to the seller on closing day.

    If you are buying a home, you’ll likely see your purchase price, plus any additional fees, less any deposits you’ve put down and funds that are coming in from your lender.  The balance of the statement is what you’ll need to pay at closing.

    If you are selling your home, you’ll see items such as proceeds from your sale, property tax adjustments, deductions for real estate commissions, and a payout to your mortgage lender, as applicable.

    The more you know, the smoother your transaction will.  Now that you have a better idea of what documents to expect at your signing appointment, taking a few minutes to prepare questions or ask for clarifications is always a good idea.

    At Deeded, we’re committed to making your Real Estate transaction seamless and smooth.  We believe that consumers should be empowered and in control of the most significant purchase or sale they’ll likely make. 

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