The Real Estate Settlement Procedures Act (RESPA) prohibits home sellers from dictating to home buyers, a required title company must be utilized for a closing. RESPA specifically states in Section 9, “RESPA prohibits a seller from requiring the home buyer to use a particular title insurance company, either directly or indirectly, as a condition of sale. Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title insurance.”
A home seller or buyer, often times, depend upon the recommendation of their real estate agent, attorney or lender. An informed consumer will familiarize themselves with the Real Estate Settlement Procedures Act when searching for a new home or considering the sale of their home. Ask family, friends, business associates and acquaintances what their personal experience may have been with a particular title company.
Delayed closings are frequently due to:
- The home buyers do not see a HUD-1 settlement statement until they are seated at the closing table.
- Home buyers are unaware of how much money to bring to the closing because they did not have access to the HUD-1 statement before arriving, for the closing.
- The title company did not perform due diligence for acquiring the required documentation or notification of involved parties for a home which is part of an estate or trust.
- All five printers at the title company run out of toner the day of your closing.
- Miscommunication between real estate agents, lenders, seller and buyer for required documentation, identification and funds.
- The title company does not perform due diligence for acquiring release of liens because they claim release of liens could not be located at the county court house. (The Realtor® had no problem obtaining the release of lien by driving to the county court house and asking for it!)
Do not be caught with all of your earthly belongings packed into a rented truck, parked outside of a title company for the closing of your dream home and find out your home could not be closed. Choose an experienced real estate agent to follow up with all involved parties. Familiarity with faults, errors and omissions will aid in an uneventful process. Remember, if there is an incomplete closing, there are no keys.
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