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Negotiating With
Homebuyers & Closing the Sale
Your REALTOR® can help you objectively evaluate every buyer’s proposal
without compromising your marketing position. Your REALTOR® can help you write a
legally binding, win-win agreement that will be more likely to make it through
the process.
Your REALTOR® can help you resolve questions that arise between the initial
sales contract and closing. For example, unexpected repairs that may be required
in order for the buyer to obtain financing or a cloud on the title is
discovered. The required paperwork alone is overwhelming for most sellers.
Your REALTOR® will help relieve your anxieties about the closing procedures
by explaining them in advance, and making sure everything you need for the
closing is ready.
The mortgage loan closing (or
settlement) is the final step to transferring ownership of your house to the
home buyer. Even though the purchase contract has been signed and the
homebuyer's loan request has been approved, the homebuyer has no rights to the
property, including access, until the legal title to the property is transferred
to the buyer and the loan is closed.
Every area of the country has its
own unique closing customs. Your REALTOR® can guide you through this process and
make sure everything flows together smoothly.
At closing, you will execute the
deed to the property, and the homebuyer will sign the mortgage loan documents,
and the closing agent will record the necessary instruments to give the buyer
legal ownership of the property.
Closing costs must also be paid.
Closing costs vary widely depending on the home’s price tag, location and other
factors. Overall, the costs will probably be between 1 and 3 percent of the
sales price.
There are standard documents and
exhibits that are commonly required for a loan closing. Some of these will be
your responsibility. Some of these will be the responsibility of other parties
to the transaction, such as the homebuyer and lender.
Title Insurance
Policy
Every lender requires title insurance.
The company issuing the title insurance policy will research legal records to
make sure that you are receiving clear title, or ownership, to the property.
Problems with title can limit your
use and enjoyment of real estate you have purchased, as well as bring financial
loss. Each year, millions of dollars are involved in title disputes.
Basically, title insurance protects
you from losses as the result of claims on the ownership of your real estate.
Unlike other insurance policies, such as homeowners and auto, title insurance
protects you from things that may have happened in the past.
Title insurers, through an
extensive search of the public records, provide you with a detailed list of the
claims that other parties may have in the real estate, such as:
- taxes
- liens
- loans on the property
- easements
- the rights of others to use
the land
But even the most careful
preventative work cannot locate hidden hazards of title. Hidden hazards can show
up after you buy your real estate, causing an unpleasant and costly surprise.
Title insurance offers you financial protection against these hidden hazards.
Examples of hidden hazards are:
- a forged deed that transfers
no title to real estate
- previously undisclosed heirs
with claims against the property
- instruments executed under
expired or fabricated power of attorney
- mistakes in the public records
The cost of title insurance varies.
It is a one-time payment that safeguards you against loss arising from hazards
and defects already existing in the title. You are protected by title insurance
for as long as you own the real estate.
Homeowner’s Insurance
The lender will require you to have
homeowners insurance on the property that covers the amount of the replacement
cost of the property.
Survey or Plot Plan
The lender may require a survey, or
plot plan, of the property to confirm that the property’s boundaries are as
described in the sales contract.
Water & Sewer Certification
If the property is not served by
public water and sewer facilities, you will need local government certification
of the private water source and sanitary sewer facility. Properties with well
and septic water sources are usually governed by county codes and standards.
Flood Insurance
If the lender or the appraiser
determines that the property is located within a defined flood plain, the lender
will require a flood insurance policy.
Certificate of Occupancy or Building Code Compliance Letter
If your home is newly constructed, you
will have to have a Certificate of Occupancy, usually from the city or county,
before you can close the loan and move in. The builder will obtain the
certificate from the appropriate authority.
Final Walk Through
Within 24 hours prior to your closing,
you and your real estate agent should make a final inspection of the property to
make sure any required repairs have been completed, all property included in the
purchase contract, such as kitchen appliances, carpeting and draperies are
present and that no recent fire or storm damage has occurred.
Wisconsin Transfer Fee
RECORDING and FILING FEES
Fees are governed by
Wisconsin Statutes and are uniform throughout the State.
RECORDED DOCUMENTS
(Recorded documents will be returned to sender or designee.)
Deeds, Mortgages, Land Contracts,
Satisfactions, etc. and Miscellaneous Documents
$11.00 First Page $2.00 each
additional page
Note: Maximum size sheet: 8 1/2" x
14". One side of a sheet constitutes a page and any riders attached are
considered another page.
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