The devil is in the details. The cliché proves true in countless situations – not the least of which is real estate closings. With so many issues involved in the transaction, it’s important to stay on top of every detail. And with so much emotion riding on the closing, you want it to go well – not only in order to secure your commission, but also to provide excellent service to your customers so they will call you the next time they are in the market for a home. Here are five tips to ensure a smooth closing.

1. Before you submit the sales contract, ask your customer if there has been a recent divorce, death or other situation that would affect title to the property. If so, inform your title agent immediately. Quick turnaround time from contract to closing depends on accurate information.
2. Whether you are working with the seller or the buyer, if a power of attorney is to be used at closing, the title company will need to review it as soon as possible. If the buyer is using a power of attorney, the lender will need to review it prior to closing as well. In addition, the escrow officer will need to speak with the principals listed on the power of attorney on the day of closing. Valid conveyance of the property requires authentic signatures from the appropriate person, and the escrow officer will need to confirm that the power of attorney is still in effect.
3. Inform the closer of any special arrangements that may be required for closing. The signatures of all parties are necessary in order to close. Therefore, if someone is unable to attend and documents need to be sent out of state or out of the country, closing will be delayed.
4. Prior to closing, be sure to provide the closer with the purchaser’s hazard insurance information. A homeowner’s insurance policy (insuring against theft, fire, etc.) is important to ensure that the property is secured as collateral for the mortgage loan. The lender will require that the certificate of insurance be presented at the closing.
5. Finally, make sure your customer has “good funds” for the closing. Many states have good funds regulations, which prohibit a title company from making any disbursements from its escrow account until all money involved in the transaction is good funds. Not all rules are the same in all states, but typically good funds may include: cash, wire-transferred funds and cashier’s checks. Personal checks, money orders or traveler’s checks may be accepted with certain restrictions. Contact your title insurance professional to determine what constitutes “good funds” in your state.

Remember that while the buyer and seller may be emotional or excited, the closing is actually a legal transaction involving transfer of property and execution of a new mortgage loan. The better a partnership is between you and your title professional, the smoother the closing will be.

Published: July 16, 2002

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Ginny Abiassi is Senior Vice President, Director of Communications, and Senior Underwriting Counsel for Stewart Title Guaranty Company, a subsidiary of Stewart Information Services Corp. (NYSE: STC). She heads Stewart’s national marketing program, oversees six company websites and is a frequent lecturer on real estate, real estate law and title insurance topics. She is the co-developer of Stewart's award-winning Virtual Underwriter software, as well as the creator of REprofile.com, the website that profiles the latest news, legislation and court decisions in the areas of real estate, finance and title insurance. Stewart Information Services Corp. is a global real estate information company, providing title insurance and related information services through more than 5,900 issuing locations in the United States and several international markets. Stewart meets the needs of real estate agents and mortgage lenders through the delivery of information services required for settlement using e-commerce. For more information visit www.stewart.com or contact solutions@stewart.com.