Wednesday, February 17, 2010

What To Bring To A Closing

Sellers and buyers need to bring certain items to closing. Some are always required, others are sometimes required. Here’s a list. If you aren’t sure if an item pertains to you, please call us.

1. Photo ID (always) (usually, this is a driver’s license).
The ID must:
- be government issued
- be valid (not expired)
- contain subject’s current address (Note: passports do not contain current address)

2. Incoming funds from an individual party must be by irrevocable wire transfer (per Indiana HEA 1374 effective July 1, 2009) if the funds from that party total $10,000 or more. Spouses are considered to be a single 'individual party'. A partnership or LLC with multiple partners or members is considered to be a single "individual party'. Two unrelated adults are each considered to be an 'individual party'. Exceptions to the wiring requirement, such as the following, are sometimes allowed for incoming funds totaling less than $10,000 if we approve in advance:

- U.S. currency and coin (small sums)
- cashier’s check (local financial institution)
- personal check (local financial institution; $500 or less)
- title company escrow check (local financial institution)
- real estate agent escrow check (local financial institution)

3. Original Social Security card (sometimes)
- buyer’s lender sometimes requires
- seller may need to show to verify SSN/TIN for 1099S tax reporting

4. Certificate of property insurance (almost always) (binders are not acceptable unless buyer is not obtaining a mortgage loan). The certificate must contain:
- policy number
- insurance company name and address
- insurance agent name, address, and phone number
- coverage amounts
- address of property insured
- names of insured (owner and lender)

5. Contact information
- mailing address (always)
- home, work, and/or mobile phone number (preferred, in case we need to contact you quickly)
- email address (preferred, in case we need to contact or send documents to you)

6. Yourself! (almost always)
- sellers and buyers should come to closing and sign in person, although not necessarily at the same time (either is okay, but different times must be arranged)
- sellers and buyers who can’t attend personally need to make other arrangements (always), which may include:
-- remote signing (documents sent to another location and signed there) (possible, but more expensive and we must consent to signing location and method)
-- appointing someone to sign for them using a power of attorney (POA) (possible, but more expensive and we must prepare or approve the POA in advance)