Other Things to know about selling real property: If you currently have an FHA mortgage, 30 day advance notice of mortgage payoff will have to be given to avoid an additional charge of one month's interest. (Some lenders charge a per diem rate, FHA charges the full 30 day's interest.) You should be aware that it is common practice to add several day's interest to the amount due as of settlement on your mortgage payoff. Your lender considers the actual payout date to be the day the funds are received. If you have a local lender, it may be possible to hand carry the payoff check to save any extra charges for daily interest. Check with your title company about their policy.
Lien waivers must be provided at closing for all work done to the property in the previous six months. A lien waiver is a standard form provided by contractors or other workman verifying that they have been paid in full and cannot place a mechanics lien against the property.
Be sure to make arrangements to transfer all utilities out of your name as of the date of occupancy. If your home is heated by oil, it may be considered personal property and, as such, will be purchased by the buyer at the time of settlement. Please arrange for your vendor to measure the amount of remaining oil and to give you a written statement as to its current value. Bring that statement to closing or escrow.
Water and sewer bills (if applicable) will be prorated on the closing statement. If you have a bill coming due near the date of settlement, please inform your closing/escrow agent as to whether or not you have paid it.
The following items are usually pro-rated on the closing/escrow statement: Water/Sewer
Homeowner's Association Fees
Condominium Association Fees
Current Taxes
Rents (If applicable)
If you will be unable to attend the closing/escrow, all documents may be pre-signed. |