What are the most effective ways to document and record the closing process?

Builders often add clauses such as Right of First Refusal (ROFR), compulsion to let-out the rights of tenancy and route the rent through them (opaqueness over actual rent received), change in the location and size of property allocated, etc. These are quite complex in nature for a layman investor to understand and hence, one should consider consulting a commercial real estate expert/lawyer. If there is a change in area/location for which you were charge more or preferred location charges (PLC), do make it a point to get the additional charges waived.

A closing checklist is a necessity! Digital closings have thankfully reduced the volume of physical paper involved with a closing but the steps are still numerous and critical. I recommend including relevant contact information for each item, e.g., title agent info for ordering title work, etc. Also assign responsible parties to scale the process but make sure there is one person who is responsible for overseeing the entire process, similar to a project manager.

Always use a checklist, whether it is physical or digital. It is best to create the checklist from a previous closing, but you can also research checklists or talk to someone you know who has recently gone through a closing. Create the checklist in a timeline order and have a way to track progress with dates. Example: Order title work- have a box to check when it is started and write the date it was started and when it should be complete. Once it is complete, you can check it off. Digital checklists are nice because you can include a recorded instruction video next to the task to review as a reminder of the exact microsteps within that task that needs to be completed.

Adicionalmente a lo descrito en el artículo en la lista de cierre se debe incluir la verificación de los paz y salvos de inmueble, el paz y salvo de la asociación de copropietarios del inmueble (HOA) y los paz y salvos de acueducto y alcantarillado y servicio de recolección de basura.

A checklist is a necessity and a spreadsheet with the major milestones is handy for keeping track of your entire pipeline at a glance. You can easily see where loans are stalled if they are in a particular stage too long.

The closing statement, also known as the settlement statement or the HUD-1 form, is a document that summarizes the financial details of the transaction. It shows the amount of money that each party owes or receives at the closing, including the purchase price, the loan amount, the closing costs, the prorated expenses, and the adjustments. You should review the closing statement carefully and compare it with the contract and the escrow instructions. You should also verify that all the calculations are correct and that there are no discrepancies or errors. If you find any issues, you should notify the closing agent and request a correction before signing the closing statement.

The closing process involves signing and notarizing various documents that formalize the transfer of ownership and the creation of a lien. Some of the common documents that need to be signed and notarized are the deed, the mortgage, the promissory note, the loan agreement, the assignment of rents, and the guaranty. You should read and understand each document before signing it, and make sure that your name and signature match the ones on your identification. You should also have a notary public witness and certify your signature, and obtain a copy of each document for your records.

The deed and the mortgage are the two most important documents that need to be recorded in the public records of the county where the property is located. The deed is the document that transfers the title from the seller to the buyer, and the mortgage is the document that creates a lien on the property in favor of the lender. Recording these documents provides legal evidence of the change of ownership and the existence of a debt. It also protects your rights and interests as the buyer or the lender, and prevents any fraudulent claims or liens by other parties. To record these documents, you need to pay a recording fee and submit them to the county recorder's office.

Organization Hack: A spreadsheet for closings during the year that link to where you store all of your documents. This makes life way easier when you are going back through your records. This sheet could include include: 1. Address 2. Closing Date 3. Seller 4. Buyer In the address, link to the folder (google drive, dotloop, docusign etc.) where you store all of the appropriate documentation. This is a gamechanger. Anytime you need to refer back to a closing, you've got ONE document that can take you where you need to go in seconds!

One of the most underrated pieces of advice I have seen is to always have a non-affiliated third party assist with the closing. An attorney or title company can assist with this. While they will charge a fee, the peace of mind and assurance that documentation for both parties is adequately outlined will provide immeasurable value in the event a discrepancy does arise.

Closing requirements will differ dramatically depending on where your property is based. Realtors/estate agents/ lawyers/ attorneys will each have a different role to play depending on the jurisdiction. It’s always worth the money to check with a local expert before risking getting caught out.