Information for Buyers

Our closing fee for a loan purchase of a property located in Orange, Alamance, or Durham counties is $595.00. For properties located in Caswell or Person counties, there is an additional cost of $100.00 in paralegal fees. This fee covers the title search, overnight and copy fees, preparation of the documents for closing and conducting the actual closing.

Documentation needed for a second loan (or equity line) is not included in this fee. If you are getting a second loan, you need to let us know when you set up the closing. In addition, expenses for a survey, termite report, title insurance, hazard insurance and recording fees are not included in this fee. The attorney’s fee is included in the settlement statement and does not require separate payment.

There are two types of title search. The fee quoted above includes a title update examination. The second type is an extended search comprised of a 30-60 year examination of the public records which will be billed to you at an hourly rate of $75 for any time spent on the search beyond a title update.

A title update examination begins with the date and time of issuance of a prior owners title insurance policy (hereinafter “Start Date”). This means that we do not search the public records prior to the Start Date. As a result, you will rely on a title insurance company to cover you against all claims which are not excepted from the title insurance policy, if such claims arise out of defects occurring prior to the Start Date. If you prefer a full search, you must advise us when you schedule your closing so we will have sufficient time to perform this service.

At the closing (which represents only about one-fifth of the services we provide for a real estate transaction), we will review all loan documents with you prior to your signing them. We will also present the deed to you so that you can be sure you name and address appear correctly on it, since we do not get involved in the complicated process of correcting recorded documents. A closing usually lasts from 30 minutes to an hour.

The funds you need for closing must be in the form of a wire transfer unless the amount is less than $1,500.00 in which case you may use a Certified or Cashier’s Check drawn on a North Carolina bank. Wiring instructions will be provided several days prior to the scheduled closing. Please be advised that we cannot provide the final amount you need for closing until after we have received closing instructions from your lender. Typically we do not receive the instructions until the day before closing. As soon as we receive the instructions, we will generate the closing statement and email it to all parties involved for information and review.

If your financial institution needs several days for the wire, please wire the amount shown on the Good Faith Estimate compiled by your loan officer; any overage will be refunded to you at the closing. If your funds are coming from the sale of your present home, the firm handling the closing can wire the funds to our Trust Account; simply provide us with their contact information and we will set it up. Again, any overage will be refunded to you at closing. If you are cashing in stocks or retirement plans, start the process as soon as possible. Our experience has been that the process takes much longer than people think.

You cannot write a personal check at closing that exceeds $100.00. All of the money we collect will be disbursed the same day. The Rules of Professional Conduct and State Law require the funds be immediately available. Personal checks take several days to clear.

If you are married or have a co-borrower for your loan, your spouse and/or co-borrower (and his or her spouse) must also be at closing to execute some of the loan documents. Even if the house will be in your name only and your spouse will not be a co-borrower, North Carolina law requires a spouse to sign the deed of trust. If your spouse is unable to attend the closing, you will need to check with your lender to determine if they will allow you to sign for your spouse using a special power of attorney. If your lender approves it, you must contact us to prepare the power of attorney, which will need to be signed by your spouse and notarized.

All parties who will be signing documents MUST bring photo identification to the closing

After recording the deed, we pay off the Seller’s loan(s) by wiring or overnighting a payoff check to the owner of the note with a cover letter directing them to return the original note and deed of trust marked “paid and satisfied” so we can deliver it to the register of deeds for cancellation of record. North Carolina General Statutes require a noteholder to “discharge and release of record” mortgages within 60 days of satisfaction. Unfortunately not all lenders comply. Because we are not a litigation law firm, we cannot pursue litigation to compel the lender to comply with this Statute. If the prior holder of indebtedness fails to comply with North Carolina law, you will need to seek a law firm that primarily engages in litigation in order to seek redress.

Several weeks after the closing, you will receive the original deed from the Register of Deeds, and your Owners Title Insurance Policy from the title company. We suggest you keep these with your other closing documents. You will need your title policy if you refinance your home and when you sell it.

Copyright © Judith M. Hauser, P.C., Attorney at Law, 2011. All Rights Reserved.