Important Notice About Your Closing (Buyers / Borrowers)
As you may know, our office represents your Lender in matters relating to your request for a mortgage loan in order to purchase real estate. We have commenced an examination of the title and have ordered necessary information to complete the closing.
When these matters are completed and reviewed by our staff we will notify you to arrange a time to close the loan. We will also advise you of any funds you may need to complete the transaction. If you are required to bring funds to closing we request that funds be sent to us via wire. Please contact our office for wiring instructions specific to your transaction. In addition, you must bring a valid drivers license or passport with you to closing for proper identification. We cannot close your transaction without this. Please do not forget as this is very important.
Click HERE for directions to our office. If you have any questions or comments relative to these matters please contact us at 443-299-6273.
Representing The Interests Of The Buyer In Real Estate Transactions
If this is your first home purchase, or perhaps you haven't purchased a new home in a while, the process may seem confusing. We hope that our office can make the entire purchase process easy and enjoyable for you. There are a few things to remember.
First, understand that the lender's closing attorney, and this includes our office if we are representing your new lender, represents the interests of the lender. Therefore, it is not the responsibility of lender's counsel to advise you on your rights and obligations regarding your new home purchase. Because of this we highly recommend that you retain your own attorney to represent your interests in this process. Our office can represent you, even if we are handling the closing for your new lender, for a reasonable fee and give you the comfort you need to proceed confidently toward the purchase of your new home.
Some of the services we provide when representing buyers are:
- Negotiation and preparation of the offer to purchase and purchase and sale agreement to protect your interests and concerns.
- Resolve issues which may arise during the pendency of your purchase and assist you if you are selling real estate to purchase your new home.
- Explain the mortgage process and assist you in understanding just what the lender’s commitment letter says.
- Assist in the coordination of the closing and represent you at the closing, review all closing documents and explain their meaning and significance to you.
- Answer questions you might have and resolve disputes that may arise at any time during the closing process.
Please call our office to discuss how we can represent you and what our fees are for this service. We look forward to hearing from you.
What You Should Know About Your Closing (Buyers/Borrowers)
This notice is provided to you pursuant to the Privacy of Consumer Financial Information Act and the Federal Trade Commission's implementing regulation there under, 16 CFR Part 313.
1. We collect nonpublic personal information about you from the following sources: Information we receive from you on applications or other forms either directly from you or from lenders and their affiliates or agents;
2. We do not disclose any nonpublic personal information about our clients, borrowers, or sellers to anyone, except as is necessary in the mortgage loan transaction as may be necessary to effectuate the transaction with the lender that you have requested; to prevent fraud or unauthorized transactions; as otherwise required or permitted by law.
3. We restrict access to nonpublic personal information about you to those clients, lenders, third parties and employees who need to know that information to provide the requested settlement services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information.
The following information is intended only to give a brief description of the three common ways of holding title and is not provided for the purpose of advising you how to take title. If further information is desired about creditors rights against the title, advantages and disadvantages with respect to estate planning and other practicalities, you should seek legal counsel from your attorney or retain an attorney for advice in these matters. In order to properly prepare the mortgage documents we require information from you as to how you intend to take title to the real estate. The three most common ways two or more persons may hold title to real estate are: The three most common ways two or more persons may hold title to real estate are: tenants in common, joint tenants or as tenants by the entirety (tenants by the entirety is only available for married couples)
Our Certification Of Title To Buyers Of Real Estate
Our duties on behalf of the Lender require that we examine the title to the premises referenced above. In addition, under the provisions of Maryland General Laws, Chapter 93, Section 70 we will also certify title to the premises you are buying. This statute states in part:
“In connection with the granting of any loan or credit to be secured by a purchase money first mortgage on real estate improved with a dwelling designed to be occupied or to be occupied in whole or in part by the mortgagor, the mortgagor is required or agrees to pay or be responsible for any fee or expense charged or incurred by an attorney acting for or on behalf of the mortgagee in connection with the rendering of a certification of title to the mortgaged premises such certification shall be referenced to the mortgagor and to the mortgagee”
The statute further prescribes that:
“The certification shall include a statement that at the time of recording the said mortgage, the mortgagor holds good and sufficient record title to the mortgaged premises free from all encumbrances, and shall enumerate exceptions thereto. The certification shall further include a statement that the mortgagee holds a good and sufficient record first mortgage to the property, subject only to the matters excepted by said certification.”
Because the scope of our examination is confined to matters of record at the appropriate Registry of Deeds and Registry of Probate, our certification will specifically exclude the following matters:
Additionally we will note for exception and your attention significant easements, restrictions and other material matters of record.
This disclosure is made in advance of the closing to apprise you of the statutory language regarding certification of title and the scope of our examination of the title to the premises you are purchasing as well as the limitations of same. Please be aware that a policy of Owners Title Insurance would cover issues related to some of the exceptions noted above. Please call us if you have any questions.
Closing Attorneys And The Closing Process - What You Should Know
Your application to your Lender for a home mortgage loan leads you inevitably to the closing attorney’s office. You undoubtedly have questions as to what the role of the closing attorney is, what tasks the closing attorney will perform and what will take place at the closing. First, understand that the closing attorney represents the interests of the lender. If your loan is a standard secondary market type loan the loan transaction and loan documentation are uniform throughout the state.
At our firm it has always been our practice to be as helpful as we can to assist borrowers in the mortgage loan transaction. Sometimes issues arise regarding the record title to a property. If there are title issues, problems in a sale transaction, or issues involving inaccuracies, we endeavor to keep the borrower informed of all relevant issues. When possible, we seek to resolve title issues and disputes, many times without any additional fees. This usually insures that the loan and, if applicable, the sale of the property being mortgaged, proceeds forward to close with the borrowers being satisfied with the result.
The closing fees quoted to you by your Lender include a variety of items. Those which involve our office include the following and are standard transactional items for representing the lender in residential loan transactions:
This is a list of some of the items that you may be asked to pay for in a normal residential loan transaction. In some instances your Lender may pay some or all of these costs if your loan program so prescribes. This explanation should serve as a brief overview of the items described above. For a further explanation please contact our office. We look forward to seeing you at your closing.
Title Insurance And Its Importance In Your Transaction
Real estate title insurance very simply is an insured statement of the conditions of one's title or ownership rights to a certain piece of real estate. The policy guarantees that the property being purchased or mortgaged is free from undisclosed liens or rights and it guarantees additionally that any confusion as to rights of ownership will be resolved in favor of the party owning the real estate or the title insurance company will be liable for loss in value to the policyholder up to the policy limits.
A buyer purchasing real estate is offered the opportunity to purchase an owner's policy of title insurance by the settlement agent, attorney, escrow company or title agent conducting the real estate closing. For example, you decide to purchase a house in Boston and are obtaining a mortgage to help you finance the purchase from a bank or mortgage company. That institution will require an examination of the title to the property and have the party reviewing the title issue to them a lender's policy of title insurance insuring that the property is or will be owned by the purchaser and that there are no defects, liens or encumbrances on the property which would adversely affect the marketability of its mortgage.
Since the settlement agent, attorney, escrow agent or title agent is already issuing a lender's policy of title insurance the buyer has the opportunity at that time to obtain an owner's policy of title insurance at a cost substantially less than the buyer would pay if the policy was not written simultaneously with the lender's policy.
The owner's policy of title insurance insures that the owner has good marketable title to the property free of any encumbrances or liens that would adversely affect the property, except those made known to the buyer, and insures to the owner that if any such liens, encumbrances, defects or other title problems become known the title insurer will defend the buyer's title to the property.
In many instances we are asked whether or not title insurance is necessary or advisable for the owner to purchase. We recommend the purchase of the title insurance for some very simple reasons. First, the premium for purchase of the title insurance policy is a one time charge. Since the purchaser is usually borrowing money to finance the purchase, the majority of the cost of the title insurance policy that the owner would receive has been paid through the premiums for the lender's policy which is required by the loan. Usually for a few hundred dollars or less the owner can insure against a variety of problems which could occur in the future. These items include forged documents in the chain of title, signatures of mentally incompetent persons or minors which are unknown to the party reviewing the title, mistakes or inaccuracies in recording of legal documents of title at the appropriate place or recording or registration of title, fraud in the execution or in the handling of the recording or indexing of recorded documents, undisclosed or missing heirs, fraud in the execution or in the handling of a transaction in the prior chain of title, invalid divorces or misrepresentation of marital status of the parties signing the documents, and most importantly clerical errors in the public records and claims of parties unknown because their claims have not been filed in any indices of public record. The enhanced policies such as First American’s Eagle Policy go well beyond these simple coverages and provide coverage for a host of issues that can affect property both prior to and after you purchase it.
Even though the buyer may be asked to pay for the lender's title insurance protection, the lender's policy of title insurance does not protect the buyer and a claim can only be made if the lender suffers a financial loss because of a title defect that adversely affects a foreclosure of the buyer's mortgage. There have been many of defects in titles which could not be revealed by an examination of the public records. These defects usually arise at a time after the transaction has taken place and purchasers can suffer significant losses as a result of them. That is why owner's title insurance makes a great deal of sense.