Tuesday Takeaway: Top 10 Things Consumers Should Know About The Closing Process

Tuesday Takeaway: Top 10 Things Consumers Should Know About The Closing Process

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homestead exemptionDo you qualify to receive a Florida homestead tax exemption? This can be an extremely serious, complex, and tricky issue to resolve. If you do qualify to take advantage of this tax exemption, you can easily save hundreds of dollars in property taxes. But to do so, you must be a natural person and a permanent resident of the state of Florida.

What is the Advantage of Receiving a Florida Homestead Tax Exemption?
The advantage that comes with qualifying for a homestead tax exemption in Florida is clear. After the purchase of your home you may be able to claim a reduction in the assessed value of your homestead of up to $50,000 on the following year’s property bill. You may qualify for the standard $25,000 and also for an addition tax exemption of $25,000. An expert team of Orlando FL homestead attorneys can advise you further on just how much of this amount you will be able to claim.

On the surface, qualifying for this special tax exemption would seem to be a quick, cut and dry affair. However, there is more to earning this tax exemption than meets the eye. It is true that the application process is a simple one. All you need to do to apply for a Florida homestead tax exemption is gather up all of your required documents and then complete an application at the county property appraiser’s office where the property is located before March 1st.

Contact the Firm of Nishad Khan P.L. for More Info 
However, just because you apply does not mean that you are automatically qualified for this tax exemption. To navigate through the process with ease, your best bet is to hire a team of expert Orlando FL homestead attorneys.

Don’t get caught up in a sea of red tape. Get in touch with the firm of Nishad Khan P.L. to learn more about how we can help you qualify for the Florida homestead tax exemption.

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first time homeownerFirst-time home buyers are purchasing their biggest investment. They’re excited, but at the same time, they’ve never been through anything like this before, so they’re nervous too.

In the experience of the home attorneys in Orlando Florida at Nishad Khan P.L., many people don’t realize that when they sign off on a purchase and sale agreement, they’re entering into a complicated agreement with many terms and conditions. Time is of the essence in these agreements. It’s important to notify your real estate agent well ahead of time if paperwork is delayed, otherwise you might not meet a deadline.

Along with a quality real estate agent, buyers will also want an experienced residential real estate lawyer. Your agent will likely encourage you to have your contract to purchase reviewed and approved by such an attorney. Note that the time frame to have it reviewed is short. Next, your agent may suggest an inspection, which is recommended even with new construction.

After that, your attorney will review a title search report of the property. He or she will be looking for any claims, liens, clouds or encumbrances on the property’s title. This is critical for purposes of the seller being able to convey marketable title.

Depending on your lender, you might not know the amount of your cash to close figure until hours before your closing. Funds should be in the form of a wire transfer to the title insurance company where you’re closing. Please ensure you verbally confirm wire instructions to avoid wire fraud.

The details at closing will make your vision blurry, but they’re all necessary. Between a quality agent and an experienced attorney, your closing might seem hectic, but to them it will be smooth. You’ll do well by contacting the home attorneys in Orlando Florida at Nishad Khan P.L. They know how to organize the chaos so that you can feel more secure in your investment.

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The information presented in this “Tuesday Takeaway” is intended for informational purposes only. This information should not be used as legal advice applicable to a specific situation. In addition, our provision of this information to an individual in no way constitutes an attorney-client relationship.

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Here is a pdf version of the above article.

The information presented in this “Tuesday Takeaway” is intended for informational purposes only. This information should not be used as legal advice applicable to a specific situation. In addition, our provision of this information to an individual in no way constitutes an attorney-client relationship.

real estate closing

Real estate closings are complicated, and Nishad Khan P.L., a real estate lawyer Orlando, has experts to assist you with this process. While it is always wise to get a professional involved, knowing the typical information buyers and sellers need to provide at the inception of a residential purchase and sale transaction will help you to prepare for closing.


What the Buyer Needs 

To begin, the buyer will need to provide the closing agent with a copy of a valid government issued ID and a copy of the executed purchase and sale agreement.  Additionally, the buyer should provide the closing agent with his or her Realtor® information, marital status, and post-closing address.

Next, the buyer will need to wire the earnest money deposit to the closing agent within the required timeframe that is listed in the Purchase and Sale Agreement.  Once the earnest money deposit is received by the closing agent, an escrow verification letter will be provided to the buyer.

In addition to a title search, the buyer should also specify if he or she would like to order a survey and a municipal lien search.  From a buyer’s perspective, both of these items are highly recommended in order to ensure that good and marketable title is being transferred to the buyer.

Lastly, it is important for the buyer to indicate whether he or she will be present for the closing or whether a power of attorney will be signing on behalf of the buyer. If the buyer will not be present for closing and if no power of attorney will be signing on behalf of the buyer, a mobile notary will need to be coordinated.


What the Seller Needs 

Just like the buyer, the seller needs to provide the closing agent with a copy of a valid government issued ID, along with his or her Realtor® information, marital status, and post-closing address.  Additionally, the seller will need to confirm whether he or she will be present for the closing or whether a power of attorney will be singing on behalf of the seller. If the seller will not be present for closing and if no power of attorney will be signing on behalf of the seller, a mobile notary will need to be arranged.

If in his or her possession, the seller should provide a copy of a prior title policy to confirm if he or she is entitled to a discount, and, if in his or her possession, a copy of a prior survey.  Any Homeowner Association information will need to be shared to the closing agent to order an association estoppel letter.  Additionally, the seller will need to indicate to the closing agent whether there are any outstanding mortgages or line of credits.

The seller will need to give their social security number and will need to provide such other information as may be needed by the closing agent in order to determine if the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) will apply.  

It is important for the seller to specify if the property his or her homestead so that all the necessary signatures can be acquired for the execution of the deed.

Finally, the seller should, to the best of his or her knowledge, confirm: (1) there are no judgments or liens outstanding; (2)  there is no probate pending as it relates to the property being sold; (3) there is no foreclosure pending as it relates to the property being sold; or (4) there is no bankruptcy pending.

How an Attorney Can Help 

A qualified Orlando real estate attorney, like Nishad Khan P.L., can help you through the closing process. We, at Nishad Khan, P.L., can ensure that your real estate closing is completed accurately and that good and marketable title to the property is conveyed. As the premier Orlando real estate lawyer, you will know that you have an expert on your side to help you navigate the law and avoid any issues with the marketability of title thus giving you total peace of mind. Contact our office today for assistance with your closing.

Takeaway Tuesday
addendum

No. The effective date of a FR/BAR contract is the last day the offer or counteroffer was signed, initialed, dated and delivered to the last party. When both parties sign an addendum, the effective date does not change unless its specifically stated in the addendum. Therefore, if an addendum is prepared to correct names, legal descriptions or any other items that were missed when the original contract was signed, you should always consider whether you want to extend any of the crucial time periods in the contract. If an extension is required, then the addendum should contain language extending that time period.

For example, suppose a contract was signed with an effective date of January 1st. Both agents realize the buyer’s name is misspelled and must be corrected per lender instructions. Both agents prepare an addendum correcting the name and the addendum is signed by all parties. This addendum does not automatically extend the effective date or any other time periods. The effective date is still the date the contract with the misspelled name was signed. If the buyer hasn’t done anything towards getting loan approval and would need more time, then the addendum should also extend the loan approval period or, more preferably, indicate the actual date the loan approval period will expire. That would effectively extend the date.

Takeaway- Always consider if any timelines need to be extended when preparing addendums.

Happy Tuesday!


What To Obtain From The Title Insurance Company And What Are They Legally Required To Provide?

Under the FRBAR Contract, the obligation is on the SELLER (per 9(c) under Closing Costs, Fees and Charges) to deliver Contract specific documents and copies. A Buyer may request documentation from a Seller’s chosen Title Company, however the Title Company may choose not to adhere to any requests made by the Buyer.

This lack of customer service may be irritating, but it is not necessarily a breach of Contract, as the Title Company is not the responsible party to deliver such documentation. The Seller alone is responsible for timely delivery of Title Evidence, Insurance documents, and ‘Legible Copies of Instruments Listed as Exceptions’, and should be held accountable for such requests.  Legally, a Title Company can refuse to provide a number of pertinent documents to the Buyer, and may simply cite that they will be available in the final settlement statement.

What should you do if the Title Company fails to deliver the required documents? Send a demand to the Seller to preserve any conditions in the contract. That will usually get their attention.

The information presented in this “Tuesday Takeaway” is intended for informational purposes only. This information should not be used as legal advice applicable to a specific situation. In addition, our provision of this information to an individual in no way constitutes an attorney-client relationship.

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Takeaway Tuesday

When multiple Agents and Brokers become involved in a Real Estate Transaction, commission splits and fees can become difficult to understand and navigate. How is commission split? Why is there an broker administration fee? Who is issuing this fee? And who pays the fee?

Need help navigating a real estate transaction? Reach out to Nishad Khan P.L. for help!

In Florida, Buyer’s Agents and Seller’s Agents rarely exist, as most are known as a Transaction Broker – a legal concept unique to Florida. While a broker administration fee from a Transaction Broker is common practice, the amount does vary from Broker to Broker.

Commission splits on multiple listing service listings are fairly straight-forward since they are set in the MLS listing. Frequently though, these MLS listings include a broker administration fee for the Transaction Broker, in addition to the commission split.

With access to the MLS, you can view or print a “Broker Full” listing information sheet, where you will find a section where the listing Broker states the co-broker commission being offered. In a straightforward percentage split, the offered compensation will just list the percentage paid to the Seller’s Broker and Buyer’s Broker (for example, 3%).  However, if there is a broker administration fee applied, the compensation will show the split as the percentage less the fee (for instance, 3% – $295).

The information presented in this “Tuesday Takeaway” is intended for informational purposes only. This information should not be used as legal advice applicable to a specific situation. In addition, our provision of this information to an individual in no way constitutes an attorney-client relationship.