Tenancy
Whenever you purchase a property with one or more other individuals the question of how to take tenancy arises. The choices are:

  • Joint Tenancy: All owners have an equal undivided share. Upon the death of any owner, that share automatically transfers "by operation of law" to the surviving owner(s).
  • Tenants by the Entirities: Limited to married couples, this option provides for survivorship in the same manner as joint tenancy. Unlike joint tenancy, individual owners may not separately transfer their share, and judgments and liens against one owner cannot attach to the property. Upon divorce, "tenants by the entirities" automatically converts to "tenants in common."
  • Tenants in Common: Owners may own in different percentages. This category has no provision for survivorship. Upon the owner's death, that individual's share passes through his/her estate to their heirs or devisees. The ultimate owner(s) will co-own with the surviving owner(s) as tenants in common.

 

Buyer's Checklist for Settlement

  1. Bring guaranteed funds to settlement (cashier's check, certified check, etc.).
  2. Make the settlement check payable to yourself and endorse at closing.
  3. Bring your homeowner's insurance policy (even though it has already been faxed).
  4. Bring photo identification (driver's license, passport, green card, etc.).
  5. Respond promptly to all lender requests.
  6. Check with your lender to ascertain what, if anything, they require from you in advance of and at closing.
  7. Perform your walk-through sufficiently prior to closing to arrive on time.
  8. Be on time.
  9. Relax-everything will be all right.



Seller's Checklist for Settlement

Walk Throughs: Buyers are entitled to walk through the home in order to ensure that the property's condition has not changed, and that all mechanical, electrical, plumbing and heating and air conditioning systems are operational. To avoid difficulties, make sure these items are working properly.

Repairs: If your contract calls for the sellers to make repairs, make certain you perform them prior to settlement.

FHA Payoffs: This applies if your existing loan is FHA. FHA payoffs require payment of interest for the entire month if the payoff is received after the first. Make certain you settle prior to the last day of the month in order to allow time for the payoff.

Payments on Mortgage: Try to avoid sending mortgage payments just prior (a week or less) to settlement. Often, payments are not credited on mortgage company computers for 4-5 days after received. These payments can result in sellers being forced to make the same payment again in the payoff and wait for a refund.

Important Papers: Please keep all of your important papers concerning the house, purchase, and financing in a separate file that remains accessible to you.

Powers of Attorney: These may be used if you can't attend closing. However, this document must be drafted properly. We can prepare a POA for you, but if already prepared we want to review these documents in advance to ensure their acceptability.

Existing Loans: Please provide the names of all lenders (and account numbers) with liens secured against the property. Remember: Equity lines are secured and must be closed and released (even if they have a zero balance).

 

CBAs:
A CBA is a "controlled business arrangement," also referred to as an "affiliated business arrangement." Basically, a real estate or mortgage company-call it the "controlling company"-makes arrangements with a title company to establish a new title company. The controlling company refers business to the new title company. The existing title company performs all meaningful services, usually at the title company's office, with the title company's personnel. As a result, the controlling company generates handsome profits. The conflict of interest is obvious. We have witnessed substantial overcharges and learned of pressure applied to buyers to settle without regard to existing problems. One can do better avoiding CBAs.

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