FAQs about Closings
1. Can I write a personal check for my closing costs?
In 2005 the Tennessee Legislature passed the Residential Closing Funds Distribution Act which requires that we receive funds (in excess of $1,000) from the lenders and/or buyers in certain forms, cash, cashier's checks or wires (funds may take other forms as well but these 3 are the most common).
2. Who selects the closing agent?
It is certainly your right to select your closing agent. Oftentimes, many people may not know or have a relationship with a closing agent and they rely on the recommendation of their lender or real estate agent.
3. Do I need title insurance?
Title insurance is a one-time charge assessed at closing that protects a homebuyer in the event that the property title, which proves ownership, is flawed. Problems with the title can include outstanding mortgages or liens; easements; improper filing by the county register, inaccurate notary acknowledgments; and deeds, unpaid property taxes and much more.
Almost without exception, a lender always requires the borrower to purchase a title policy to protect the lender against any title problems (the "Lender's Policy"). The title insurance company will also issue the owner a title policy at this same time for a reduced rate ("simultaneous issue rate"). As a matter of practice, we always include an owner's policy unless the buyer specifically requests that they do not wish to have the coverage. I know title problems are rare, but I've seen plenty and they are often unavoidable - just be glad you have the title insurance.
In 2005 the Tennessee Legislature passed the Residential Closing Funds Distribution Act which requires that we receive funds (in excess of $1,000) from the lenders and/or buyers in certain forms, cash, cashier's checks or wires (funds may take other forms as well but these 3 are the most common).
2. Who selects the closing agent?
It is certainly your right to select your closing agent. Oftentimes, many people may not know or have a relationship with a closing agent and they rely on the recommendation of their lender or real estate agent.
3. Do I need title insurance?
Title insurance is a one-time charge assessed at closing that protects a homebuyer in the event that the property title, which proves ownership, is flawed. Problems with the title can include outstanding mortgages or liens; easements; improper filing by the county register, inaccurate notary acknowledgments; and deeds, unpaid property taxes and much more.
Almost without exception, a lender always requires the borrower to purchase a title policy to protect the lender against any title problems (the "Lender's Policy"). The title insurance company will also issue the owner a title policy at this same time for a reduced rate ("simultaneous issue rate"). As a matter of practice, we always include an owner's policy unless the buyer specifically requests that they do not wish to have the coverage. I know title problems are rare, but I've seen plenty and they are often unavoidable - just be glad you have the title insurance.
Last updated by Marc Diaz Aug. 18, 2008.
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