the keybook your guide to buying and selling a home in virginia Over 50,000 homes closed in Northern Virginia since 1973

Transcription

1 the keybook your guide buying and selling a home in virginia Over 50,000 homes closed in Northern Virginia since 1973

2 let key title open the door your home Congratulations on finding a new home! This guide provides a comprehensive overview of the sometimes mystifying home-buying process. We hope it answers most of your lingering questions. Of course, if at any time you have a question or a concern, a member of our professional staff is available assist you. In fact, we have six locations throughout the Northern Virginia area for your convenience. ANNANDALE 7010 Little River Turnpike, Suite 220 Annandale, VA Phone: (703) Fax: (703) ARLINGTON 4620 Lee Highway, Suite 211 Arlingn, VA Phone: (703) Fax: (703) ASHBURN Cape Court, Suite 110A Ashburn, VA Phone: (571) Fax: (571) BURKE 9285 Old Keene Mill Road Burke, VA Phone: (703) Fax: (703) FAIRFAX Lee Jackson Memorial Highway, Suite 108 Fairfax, VA Phone: (703) Fax: (703) RESTON 1831 Wiehle Avenue, Suite 105 Resn, VA Phone: (703) Fax: (703) For a property in Washingn, D.C., please contact our Arlingn office. For further information, please check out

3 contents 2 buyers checklist 3 why choose key title? 3 prior closing 4 the closing what happens at closing? what if i can t get the scheduled closing? what do i need bring? what documents should i expect sign? 6 the HUD-1 11 title insurance why is title insurance needed? who does title insurance protect? 11 after closing 12 sellers checklist as a seller, when will i receive my proceeds and in what form?

4 buyers checklist Complete loan application and promptly furnish your lender with all requested documents and information. Purchasers should comply with these requests avoid delays in closing. Schedule the settlement date and time through your real estate agent and/or Key Title. If any purchaser will not attend settlement, please contact Key Title and your lender now for a pre-approved power of atrney. General powers of atrney may be insufficient because they lack specificity and precise language. Obtain and review Homeowners Association or Condominium Association documents. Any objections must be made within three days of receiving the document or they are waived. Obtain and provide a hazard insurance policy satisfacry your lender. Bring a duplicate original policy settlement. Home, radon, and walk-through inspections should be scheduled with seller s representative by your real estate agent. Determine who will order the termite inspection and ensure the certificate is delivered the lender prior closing. Transfer all utilities in your name as of the date of settlement (or other date mutually agreed upon with seller). Ensure utilities will be on for your final walk-through inspection. For your convenience, a list of phone numbers is provided on page 13 of this guide. Bring settlement: a certified or cashier s check payable Key Title for the balance of your down payment plus estimated closing costs, pho identification, original Power of Atrney (if applicable) and your checkbook. Please advise us as soon as possible if you wish wire funds Key Title. 2

5 why choose key title as your settlement company? Key Title is dedicated ensuring that your settlement is smooth and worry-free. We understand the stress of buying a home and we are here ease your concerns. It is our policy that everyone on our staff receptionists, processors, marketing direcrs and settlement officers is available answer your questions and provide you with pertinent information. In order better serve you, Key Title has six offices located throughout Northern Virginia. This allows us more flexibility in handling your needs and those of your real estate agent. Also, Key Title settlement officers are willing travel conduct closings in any of our offices. Our fees are competitive and Key Title will match any of our competir s prices. The settlement officers of Key Title are dedicated professionals and average over 15 years of experience in residential and commercial settlements. We invite you enjoy the benefits of our experience and superior service day! prior closing Once you have a ratified sales contract signed by all the parties, ask your real estate agent forward it your chosen Key Title office so that we can get started on your file. When we receive the contract, Key Title will: Mail welcome letters the Purchaser and Seller. These letters explain the role of Key Title, detail our fees and include an information form be returned our office. Ensure the appropriate county or city land records are searched determine what liens and/or judgments encumber the property. Take necessary steps ensure that good and marketable title is conveyed the Purchaser. Order and review a survey determine if any encroachments exist. Verify the annual real estate taxes on the property. Provide the title report the Purchaser s lender and communicate with the lender schedule settlement and ensure that everything is on track. Communicate with the real estate agents and/or Purchasers and Sellers schedule a settlement date and time. Obtain payoff amounts for Sellers existing loans(s) on the property. Contact the Homeowners Association or Condominium Association verify that the dues are current and prorated between the Purchasers and Sellers. Obtain the loan documents and fees from the lender for the Purchaser. Prepare the HUD-1 Settlement Statement and verify that all costs incident the sale (required inspections, lender fees, escrow account payments, title insurance costs, loan payoffs, taxes and homeowners association dues, et al.) are paid and/or prorated the appropriate parties. The Key Book 3

6 the closing what happens Yat closing? Your closing will be conducted by an experienced and professional Key Title settlement officer. All Purchasers, Sellers and, usually, their respective real estate agents will be in attendance. Occasionally, lender representatives and mortgage brokers also attend. The settlement officer acts as a neutral party and is there explain each charge and credit on the HUD-1 Settlement Statement, review all documents with you and confirm that you have properly executed each document. Key Title may consult Eskovitz, Lazarus & Pitrelli, P.L.L.C., General Counsel Key Title, determine if all the preconditions of the sales contract have been satisfied. Such a consultation may be made available you in an effort resolve a dispute that may arise during your settlement. After you have signed all the necessary documents and paid the funds needed close, it is typical for the Seller hand the Purchaser the keys the house and offer congratulations. Generally, the closing takes about an hour, unless complications arise. what if i can t get the scheduled closing? If you cannot attend closing, the use of a Power of Atrney may be permitted. This documents formally appoints someone (such as a spouse or other relative or friend) sign documents on your behalf. This person, commonly referred as your Atrney-in-Fact, will need attend the closing in your place. However, any use of a Power of Atrney must first be approved by your lender (if you are the Purchaser). If your lender permits the use of a Power of Atrney, please notify Key Title immediately so that the Power of Atrney document can be prepared and/or reviewed prior closing. The law firm of Eskovitz, Lazarus & Pitrelli, P.L.L.C., General Counsel for Key Title, can prepare the Power of Atrney for a nominal fee. If your Power of Atrney is prepared elsewhere, you must provide a copy Key Title and your lender as early as possible so that it can be reviewed as form and content. what do i need bring? 4 Be sure bring valid government issued pho identification, such as a driver s license or passport. the closing. If you are signing for someone as their Atrney-in-Fact, please bring the original Power of Atrney. Purchasers must bring sufficient certified funds pay the balance of the down payment stated in the sales contract. This is usually paid in the form of a cashier s or certified check, however funds may be wired Key Title provided they arrive prior closing. If the Purchaser has brought closing more than the required amount of money, Key Title will issue the Purchaser a check for the excess amount. Key Title, generally, will accept a personal check for the title company charges and the government recording fees. Please contact your Key Title office the day before settlement obtain an estimate of the tal funds needed close. The telephone numbers for each office are provided on the inside cover of this Guide.

7 what documents should i expect sign? In addition the HUD-1 Settlement Statement (see the explanation of the HUD-1 on page 9), there will be a number of documents that you are required sign at closing. Below is a brief explanation of some of the most common documents: Promissory Note: Frequently referred as an IOU, it is a written promise pay a specified amount of money the holder of the Note, at a certain time and under certain terms. Deed of Trust: An instrument used in Virginia in place of a mortgage. This is usually a standardized legal document recorded in the appropriate county/city land records that formally conveys ownership of property from the Purchaser a Trustee for the purpose of securing payment of the loan. If the loan is not repaid, the Trustee is empowered sell the property at a foreclosure auction and use the sale proceeds pay off the loan. First Payment Letter: This document sets forth the amount of your tal monthly mortgage payment and the first due date. Typically, it describes the amount of principal, interest and monthly escrow deposits for real estate taxes, homeowners insurance and/or mortgage insurance, if you have an established escrow account. This payment amount does not include your Homeowners Association or Condominium Association dues. Truth In Lending Statement: This form, required by federal law, shows the Annual Percentage Rate (APR), the payment breakdown and the tal cost over the life of the loan. It also confirms the general terms of the loan such as whether the interest rate is variable, whether there is a prepayment penalty and confirms that the subject property secures the loan. W-9: This document ensures that your mortgage interest payments are correctly linked your Social Security number when reported the IRS. Flood Insurance: Lenders are required under federal law determine whether your property is located in a special hazard zone, as determined by FEMA. If it is, you will be required obtain flood insurance. If your property is not in a special flood zone, you will not be required get flood insurance. Remember, if FEMA later determines that your property is in a special flood hazard zone, you may be required obtain flood insurance at that time. Signature/Name Affidavit: A written declaration swearing under oath that you are the same person as the person listed in the document and confirming variations of your name. Termite Report: A report issued by a licensed pest control firm no more than 30 days prior settlement stating whether there was any visible evidence of wood destroying insects found at the property. Survey: Surveys are usually one page drawings mapping the approximate location of boundaries and physical improvements found at the property. Surveys are routinely required ascertain whether others (such as adjoining property owners) have encroached on the property being purchased. Surveys also illustrate if the physical improvements the subject property (1) extend beyond the lot s legal boundaries, (2) violate building restriction lines and other regulary restrictions, or (3) are located in easements of record. The most common type of survey required in a residential real estate transaction is a House Location Survey which shows the location of all improvements relative the physically observed lot lines and easements of record. In this type of survey, no physical markers (such as corner posts, iron pipes, flags, stakes, monuments, etc.) are installed aid in locating boundaries. However, any existing boundary markers will be noted on the survey. The installation of boundary markers requires additional time and expense. If you wish have the boundaries and corners of your lot marked (i.e., a full Boundary Survey), please call Key Title discuss the matter. The Key Book 5

8 the HUD-1 This portion of the document identifies the parties the transaction, including the purchaser/borrower, seller, property address, lender, settlement company and location, settlement date, and the loan and files numbers. 1. FHA 2. RHS 3. Conv. Unins. 6. File Number: 7. Loan Number: 8. Mortgage Insurance Case Number: 4. VA 5. Conv. Ins. SFSAMPLE10 C. Note: This form is furnished give you a statement of actual settlement costs. Amounts paid and by the settlement agent are shown. Items marked "(p.o.c.)" were paid outside the closing; they are shown here for informational purposes and are not included in the tals. D. Name and Address of Borrower: E. Name and Address of Seller: F. Name and Address of Lender: PURCHASER(S) SELLER(S) PURCHASER'S LENDER G. Property Location: 123 MAIN STREET YOUR CITY, VIRGINIA H. Settlement Agent: Key Title Place of Settlement: One of our convenient KEY TITLE locations Ph. I. Settlement Date: J. Summary of Borrower's transaction K. Summary of Seller's transaction 100. Gross Amount Due from Borrower: 400. Gross Amount Due Seller: 101. Purchase Price of Property 401. Contract sales price 102. Personal property 402. Personal property 103. Settlement Charges Borrower (Line 1400) Adjustments for items paid by Seller in advance Adjustments for items paid by Seller in advance 106. City/Town Taxes 406. City/Town Taxes 107. County Taxes 407. County Taxes 108. Assessments 408. Assessments Gross Amount Due from Borrower 420. Gross Amount Due Seller 200. This section itemizes all purchaser credits 500. Reductions in Amount Due Seller: 201. A prepaid amount held in trust by real estate agent, settlement agent or builder 501. Excess deposit (see instructions) 202. Principal amount of new loan(s) 502. Settlement charges Seller (Line 1400) 203. Existing loan(s) taken subject 503. Existing loan(s) taken subject Payoff First Mortgage Payoff Second Mortgage Adjustments for items unpaid by Seller Adjustments for items unpaid by Seller 210. City/Town Taxes 510. City/Town Taxes 211. County Taxes 511. County Taxes 212. A ssessments 512. Assessments Total Paid by/for Borrower 520. Total Reduction Amount Due Seller 300. Cash at Settlement from/ Borrower 600. Cash at settlement /from Seller 301. Gross amount due from Borrower (line 120) 601. Gross amount due Seller (line 420) 302. Less amount paid by/for Borrower (line 220) ( ) 602. Less reductions due Seller (line 520) ( ) 303. Cash From To Borrower Cash To From Seller

9 L. Settlement Charges 700. Total Real Estate Broker Fees Paid From Paid From Division of commission (line 700) as follows: Borrower's Seller's 701. Funds at Funds at 702. Settlement Settlement 703. Commission paid at settlement Items Payable in Connection with Loan 801. Our origination charge (from GFE #1) 802. Your credit or charge (points) for the specific interest rate chosen (from GFE #2) 803. Your adjusted origination charges (from GFE #A) 804. Appraisal fee (from GFE #3) 805. Credit Report (from GFE #3) 806. Tax service (from GFE #3) 807. Flood certification (from GFE #3) 808. (from GFE #3) 809. (from GFE #3) 810. (from GFE #3) 811. (from GFE #3) 900. Items Required by Lender Be Paid in Advance 901. Daily interest charges /day (from GFE #10) 902. MIP Tot Ins. for Life of Loan months (from GFE #3) 903. Homeowner's insurance for years (from GFE #11) 904. (from GFE #11) 905. (from GFE #11) Reserves Deposited with Lender Initial deposit for your escrow account Homeowner's insurance per month (from GFE #9) Mortgage insurance per month Property taxes per month per month Title Charges Title services and lender's title insurance (from GFE #4) Settlement or closing fee Owner's title insurance First Amer ican Title Insurance Company (from GFE #5) Lender's title insurance First American Title Insurance Company Lender's title policy limit Owner's title policy limit Agent's portion of the tal title insurance premium Old Dominion Settlements Underwriter's portion of the tal title insurance premium First American Title Insurance Company Government Recording and Transfer Charges Government recording charges Clerk of the Circuit Court/Key Title (from GFE #7) Deed Mortgage Releases Other Transfer taxes (from GFE #8) City/County tax/stamps State tax/stamps Granrs Tax Additional Settlement Charges Required services that you can shop for (from GFE #6) Pest Inspection Survey Total Settlement Charges (enter on lines 103, Section J and 502, Section K) 0.00 Certified be a true copy. cont d. The Key Book 7

10 Charges That Cannot Increase HUD-1 Line Number Comparison of Good Faith Estimate (GFE) and HUD-1 Charges Good Faith Estimate HUD-1 Charges That in Total Cannot Increase More than 10% Good Faith Estimate HUD-1 Total Increase between GFE and HUD-1 Charges 0.00 or 0.00% Charges That Can Change Good Faith Estimate HUD-1 Loan Terms Your initial loan amount is Your loan term is N/A Your initial interest rate is % Your initial monthly amount owed for principal, interest and any mortgage insurance is N/A Principal Interest Mortgage Insurance Can your interest rate rise? X No Yes, it can rise a maximum of %. The first change will be on and can change again every months after. Every change date, your interest rate can increase or decrease by %. Over the life of the loan, your interest rate is guaranteed never be lower than % or higher than %. Even if you make payments on time, can your loan balance rise? X No Yes, it can rise a maximum of Unknown. Even if you make payments on time, can your monthly amount owed for principal, interest, and mortgage insurance rise? X No Yes, the first increase can be on and the monthly amount owed can rise. The maximum it can ever rise is. Does your loan have a prepayment penalty? X No Yes, your maximum prepayment penalty is. Does your loan have a balloon payment? Total monthly amount owed including escrow account payments X No Yes, you have a balloon payment of due in years on. X You do not have a monthly escrow payment for items, such as property taxes and homeowner's insurance. You must pay these items directly yourself. You have an additional monthly escrow payment of N/A that results in a tal initial monthly amount owed of N/A. This includes principal, interest, any mortgage insurance and any items checked below: Property taxes Flood insurance Homeowner's insurance Note: If you have any questions about the Settlement Charges and Loan Terms listed on this form, please contact your lender. 8

11 Line Number from HUD1 Description of Item from HUD1 Definition of Item 100 Section represents all the amounts due from the purchaser, including the sales price, closing costs (from Page 2), all pro-rata items (i.e. taxes, homeowners association dues), and any another charges required for settlement. 100 Gross amount due from purchaser This section itemizes items that are due from the borrower 101 Contract sales price The price paid purchaser the property (same as Line 401) 103 Settlement charges Total of settlement charges from Page 2 ( same as line 1400) 106 City/Town taxes Proration amount of taxes be paid by purchaser, crediting the seller for amount seller has already paid (same as Line 406) 107 County Taxes Proration amount of taxes be paid by purchaser, crediting the seller for amount seller has already paid (same as Line 407) 120 Gross amount due from purchaser Total amount due from purchaser complete transaction 200 Section represents all credits or payments made on behalf of the purchaser, including the earnest money deposit, new loan amount, any pro-rata amounts, and any negotiated credits wards closing costs. 200 Amount paid by borrower This section lists the money being brought settlement by the purchaser 201 Earnest money deposit Amount held in trust by the real estate agent or settlement company 202 Principal amount of new loan Amount of the new loan on the property 210 City/Town taxes Proration amount of taxes be paid by seller, crediting the purchaser for amount purchaser will pay (same as Line 510) 211 County Taxes Proration amount of taxes be paid by seller, crediting the purchaser for amount purchaser will pay (same as Line 511) 300 Cash at Settlement from Borrower Total of sections 100 and Cash from/ Borrower Total amount of money purchaser is bringing settlement (or be refunded purchaser) 400 Section represents all gross amounts due the seller, including but not limited, sales price and any pro-rata items. 400 Gross amount due seller This section itemizes amounts due seller 401 Contract sales price The price paid purchaser the property 406 City/Town taxes Proration amount of taxes be paid by purchaser, crediting the seller for amount seller has already paid (same as Line 106) 407 County Taxes Proration amount of taxes be paid by purchaser, crediting the seller for amount seller has already paid (same as Line 107) 420 Gross amount due seller Total of amount due the seller 500 Section represents all reductions from the gross amount due the seller, including but not limited, the settlement fees (from Page2), payoff of any existing loans, pro-rata taxes, and negotiated credits the purchaser. 500 Reductions in amount due seller Itemizes reductions from tal amount due Seller 502 Settlement charges seller Total settlement charges from Page 2 (same as Line 1400) 504 Payoff of mortgage Amount being sent payoff the existing loan on the property 510 City/Town taxes Proration amount of taxes be paid by seller, crediting the purchaser for amount purchaser will pay (same as Line 210) 511 County Taxes Proration amount of taxes be paid by seller, crediting the purchaser for amount purchaser will pay (same as Line 211) 600 Total reduction amount due seller Total of sections 400 and Cash /from seller Total amount due seller (from seller) Page 2 of the HUD-1 Settlement Statement Provides a breakdown of the closing costs and fees for the purchaser and seller. 700 Total Real Estate Broker Fees Total commission be charged 701 Division of Commission Portion of commission due the listing agent, plus administrative fee (if any) 702 Division of Commission Portion of commission due the selling agent, plus administrative fee (if any) 703 Commission Paid at Settlement Total commission and administrative fee for listing agent (if any) 800 Items payable in connection with loan Itemization of one-time costs charged by the lender 801 Origination charge Includes all charges received by a loan originar, except for any additional charge ( points ) for the interest rate chosen on the loan; also reflects all amounts received for any service, including administrative and processing services, performed by or on behalf of the lender or mortgage broker.* 802 Credit or charge for interest rate Mortgage broker fees, if any, credit for no-cost loan, and points impacting the interest rate 803 Adjusted origination charge Sum of Lines 801 and Appraisal fee Payment an independent expert who offers a judgment or worth value of the subject property in an appraisal report. The lender uses that report as a basis for the loan value (percentage of loan in relation the appraised value, not necessarily the sales price). 805 Credit report A fee payable an independent credit bureau. The lender uses payment hisry and credit score as a ol assess risk. 806 Tax service fee Amount payable an independent company hired by the lender monir tax payments the city or county. Any delinquent taxes, either now or in the future, will negatively affect the lender s security. This fee is required even for loans without a property tax impound account. The Key Book 9

12 Line Number from HUD1 Description of Item from HUD1 Definition of Item 807 Flood certification Amount payable an independent company by the lender determine whether the subject property is in a FEMA flood zone. If it is, special flood insurance may be required by the lender. 900 Items by lender be paid in advance Items required by lender be paid in advance 901 Interest /from specific dates Amount paid by the borrower lender as pre-paid interest on the loan. For example, if closing occurs on the 10th of the month, the lender will charge 20 days worth of interest ( the 30th), taking the borrower the first of the following month. 902 Mortgage insurance premium Premium paid the lender or FHA protect it against certain losses in case of a subsequent foreclosure. When required by a conventional lender, this is called Private Mortgage Insurance (PMI) and is often required when the down payment is less than twenty percent. 903 Hazard insurance premium Amount paid by the borrower the hazard insurance company for a one year premium required by the lender at closing. 904 Flood insurance premium Amount paid by borrower for flood insurance, if required by the lender. If the property is located in a flood zone, the lender may require this type of insurance protecting the lender s interests in case of loss due a flood Reserves deposited with lender Also known as impounds. Amounts paid lender for taxes, as well as hazard and flood insurance be held in escrow on behalf of the borrower. The lender will make the payments as they become due Initial deposit for escrow account Sum of Lines 1002 through Homeowner s insurance Amount be held in trust for hazard insurance. The lender s requirements will vary as how many months keep in reserve. If your insurance premium goes up, the lender will adjust the figure being collected accordingly Mortgage insurance Amount be held in trust for PMI or FHA premium as described in line 902 (when applicable). The lender s requirements will vary as how many months keep in reserve Property taxes Amount be held in trust for property taxes. The lender s requirements will vary as how many months keep in reserve. If your property taxes increase, the lender will adjust the amount collected accordingly Assessments Amount be held in trust for on-going assessments levied against the subject property, if applicable. The lender s requirements will vary as how many months keep in reserve. If you assessments increase, the lender will adjust the amount collected accordingly Flood insurance Amount be held in trust for flood insurance, if applicable. The lender s requirements will vary as how many months keep in reserve. If the flood insurance premium increases, the lender will adjust the amount collected accordingly Aggregate adjustment Anticipated overage or shortage in the impound account at a particular point during the first year of the loan Title charges Itemization of all charges associated with the title company. This charge may include: title examination and evaluation, preparation and issuance of a title commitment (required for title insurance), clearance of underwriting objections, preparation and issuance of title insurance policies, all processing and administrative services required, document preparation, and release of liens Title service charges Sum of the settlement title service fees (including, but not limited, settlement fee, title search, document preparation, notary fees, courier fees) and lenders title insurance premium 1102 Settlement of closing fee Fee paid a third party closing service, if necessary (i.e. split settlement or witness closing) 1103 Owner s title insurance Fee charged for the owner s title insurance policy (see article regarding title insurance on Page ) 1104 Lender s title insurance Portion of fee on Line 1101 that is for the Lender s Title Insurance Premium 1105 Lender s title policy limit Total liability for the Lender s Title Insurance Policy 1106 Owner s title policy limit Total liability for the Owner s Title Insurance Policy (this amount can increase depending on the type of coverage purchased) 1200 Government & Recording Fees This section itemizes charges payable local and state governments in connection with the transaction 1201 Government recording charges Amount charged for recording documents, which makes them public record. It is the tal of amounts on Line Recording charges Description and amount for each document Recorded 1203 Transfer taxes Sum of the jurisdictional stamps based on the sales price and loan amount. It is the tal of the amounts on Lines 1204 and City/County stamps Amount levied by the local government as a percentage of the loan amount and purchase price or assessed value (which ever is higher) 1205 State stamps Amount levied by the state government as a percentage of the loan amount and purchase price or assessed value (which ever is higher) 1206 Granrs Tax Amount levied by the state government based on the purchase price or assessed value (which ever is higher). Charged for purchase transactions only Additional settlement charges Any other charges not itemized in another section but required in contract (i.e. survey, pest inspection, home warranty) 1301 Required services Sum of Lines 1302 through Survey Your lender may require a survey for a purchase transaction 1400 Total settlement charges Sum of Lines 700 through 1305 Page 3 of the HUD-1 Settlement Statement - The chart at the p of the page provides a comparison of fees disclosed on the Good Faith Estimate and the actual fees as listed on the HUD-1 Settlement Statement. The remainder of the document sets forth the terms of the purchaser s new loan, including the loan amount, interest rate, and monthly payments *As defined in the Department of Housing and Urban Development New RESPA Rule FAQs dated April 2, 2010

13 title insurance w whyis title insurance TTitle insurance is an essential part of virtually every transfer of ownership. Unlike Unlike most most i insurance which protects against risk of future events, title insurance exists eliminate losses due defects in title which occur as a result of things that happened in the past. Even the most careful title search will not reveal some situations or events that could cast doubt on your title the property. Some of these are: mistakes in the public record; fraudulent or forged title instruments; undisclosed heirs; adverse possession; undisclosed prescriptive rights; and others. The title examiner is not liable for such matters, nor for title defects or rights of other that are not of record. Title Title insurance, gene will protect the insured party from generally, financial loss or damage for covered risks up the policy limits. Such expenses typically include atrney s fees in defense of title and the payment of monetary claims. needed? whow does title insurance protect? Both the lender and the owner have an interest in the owner s clear title the property and separate title insurance policies are available protect their respective interests. Generally, if the purchaser is financing any portion of the purchase price, a commercial lender will require that a Lender s Title Insurance Policy be issued insure the lender the maximum amount of the loan. Though this policy protects the lender, it is the owner who will pay the premium at settlement as one of the costs of obtaining the loan. For the property owner be protected, the owner must elect purchaser a separate Owner s Title Insurance Policy which protects the owner up the face value of the policy (usually the purchase price). While a purchaser is not required buy an Owner s Policy, it his highly recommended that the purchaser does so because a home is usually an individual s largest investment. It is our opinion that an owner would be ill-advised not protect their growing equity and the value of their investment in the property. Both minor defects Both, and catastrophic minor defects title and catas are insured against by the single-premium-payment failures charged at closing. The policy s protections extend beyond the period of ownership and continue defend your estate even after death of the owner. In recent years, property owners have been able purchase enhanced title insurance policies which further protect them by increasing the policy limit over time in recognition of fast rising values as well as insuring owners against some post-policy events (e.g. the post some settlement post-policy discovery events; e.g. of zoning the post and settlement building permit discovery violations, of zoning & encroachments, building permit adverse violations, possession, encroachments, transfers in a adverse trust, and possession, other title transfers risks). in Key a Title trust, will and happily other title provide quotes risks. for Key specific Title will premiums happily for provide any policy quotes upon for specific request. premiums for any policy upon request. after closing Congratulations! Now that you have successfully completed closing, you are the new owner of the home. Make sure you have your mail forwarded your new address and inform your friends, family and business contacts that you have moved. If you have not already done so, transfer all utilities in your name immediately. You want avoid having any utilities turned off. For a phone list of utility companies in our area, see the inside back cover of this guide. The Key Book 11

14 sellers checklist Confirm the settlement date and time through your real estate agent and/or Key Title. If any seller will not attend settlement, please contact Key Title now arrange for an approved power of atrney. General powers of atrney are usually insufficient. Transfer utilities out of your name as of the settlement date, or other date agreed upon with the buyer. Be aware that utilities cannot be turned off prior the walk-through inspection. Complete all home inspection items and repairs in accord with the sales contract. Bring all supporting receipts settlement. Ensure appliances, heating/air conditioning, electrical and plumbing systems are in normal working order. Bring settlement: your pho identification, your forwarding address, social security number, garage door openers, and all remaining keys the property. Obtain wiring instructions from your bank and bring them settlement if you prefer have your proceeds wired. Seller's funds will be distributed upon recordation of the appropriate documents among the land records (usually within 48 hours of settlement). Arrange for alternative transfer of your funds well in advance of settlement if you require it. If you require your funds for an immediate home purchase, we suggest it would be more efficient for Key Title close your purchase. As a seller, when will i receive my proceedsand in what form? In Virginia the Wet Settlement Act requires that a transaction be on record at the county/city courthouse prior any disbursement of funds. In most situations, the recording will take place the next business day, but can take up 48 hours. The norm is that funds will be available the business day following your settlement. However, caution should be used when closing on a Friday or over a Holiday weekend as there will surely be a delay. The Wet Settlement Act does not apply Maryland and DC transactions. Disbursement in these jurisdictions can take place immediately following closing pending verification of closing funds. It is possible record the same day of the settlement, however, time and other restrictions will play in the feasibility of that process. In the event that you are closing on another home within 24 hours of your sale, we strongly suggest that you contact the closing agent/atrney find out whether they will accept an assignment of funds in lieu of a cashiers check at closing; if you are closing outside the Commonwealth, they may not recognize this practice. If this is the case, please allow 2 business days between your transactions. This will allow time for recording and disbursement via wire transfer the subsequent closing agent. Another disbursement option is a settlement trust account check. The check is generally available for pick up after 4 p.m. the next business day or, if you prefer, sent you via express overnight delivery. 12

15 northern virginia utilities City of Alexandria Water - Virginia-American Water Company Gas - Washingn Gas Light Company Electricity - Dominion Virginia Power Telephone - Verizon Cable TV - Comcast Alexandria City Schools City of Falls Church Water - Falls Church Water Authority Gas - Washingn Gas Light Company Electricity - Dominion Virginia Power Telephone - Verizon Cable TV - Cox Communications Falls Church City Schools Arlingn County Water - Arlingn County Water Authority Gas - Washingn Gas Light Company Electricity - Dominion Virginia Power Telephone - Verizon Cable TV - Comcast Arlingn Public Schools Fairfax County Water - Fairfax County Water Authority Water - Fairfax City Utilities Gas - Washingn Gas Light Company Electricity - Dominion Virginia Power Telephone - Verizon Cable TV - Cox Communications Fairfax County Schools Prince William County Water - Prince William County Service Authority Gas - Washingn Gas Light Company Electricity - Dominion Virginia Power Telephone - Verizon Cable TV - Comcast Prince William County Schools Loudoun County Water- Loudoun Water Gas - Washingn Gas Light Company Electricity - Dominion Virginia Power Telephone - Verizon Cable TV - Comcast Loudoun County Schools Trash Companies AAA Recycling & Trash Removal Services, Inc BFI notes

16 ANNANDALE 7010 Little River Turnpike, Suite 220 Annandale, VA Phone: (703) Fax: (703) ARLINGTON 4620 Lee Highway, Suite 211 Arlingn, VA Phone: (703) Fax: (703) ASHBURN Cape Court, Suite 110A Ashburn, VA Phone: (571) Fax: (571) BURKE 9285 Old Keene Mill Road Burke, VA Phone: (703) Fax: (703) FAIRFAX Lee Jackson Memorial Highway, Suite 108 Fairfax, VA Phone: (703) Fax: (703) RESTON 1831 Wiehle Avenue, Suite 105 Resn, VA Phone: (703) Fax: (703)