Dear Buyer(s):
Congratulations and thank you for allowing our firm to represent you in your purchase of the property. We look forward to working with you.
The purpose of this Client Engagement Letter is to set-out what you may expect throughout our representation. Our representation and the fee charged for our services are limited to conducting the title examination; reviewing the physical survey of the property, if engaged to do so timely; disbursement of settlement of funds; assuring the recording of all necessary documentation; and procuring the title insurance policies itemized on the settlement statement.
Should you wish our firm to provide additional services or represent you outside the scope of this Client Engagement Letter, we may charge separate fees for such services. Drafting company resolutions, powers of attorney, coordinating multiple signatories, and handling transactions in which rents are prorated are examples of services for which our firm will charge an additional fee. Our fees are set-out on our Fee Scheule Form which you may request.
Title Examination and Title Insurance
In conducting a title examination of the property, if our firm can locate an existing title insurance policy, we will “tack” to that prior policy. This is a standard practice in North Carolina residential real estate transactions. “Tacking” means our title examination will begin with the date and time of issuance of that prior policy, and we will not certify the status of title to the property prior to the date on which the prior policy was issued. While defects in title occurring prior to our search period would not be reported by us if we “tack,” any such defects would be covered/insured by your title policy, so you will receive comparable title insurance coverage as if we had conducted a full examination. Title insurance companies issue title insurance policies based upon these types of limited title examinations routinely.
Occasionally, our title examination may reveal minor defects in the title to the property. Many of these defects can be addressed by your title insurance policy. In these instances, your title insurance company will “insure over” these defects- meaning that the title insurance company deems the defects to present minimal risk. That is, you will be insured in the unlikely instance a claim arises from a defect in the title. Obtaining an insurable title interest for a purchaser is a standard practice in residential real estate transactions in North Carolina. If you have any objections to receiving such an insurable title interest in the unlikely event of a minor title defect, please contact our firm immediately; otherwise, our firm will assume by your submitting to our ongoing representation that this standard practice is agreeable to you.
If our firm is unable to “tack” to a prior title insurance policy or you prefer our firm not conduct the abbreviated title search described above, our firm will conduct a full title examination
(spanning approximately 30 years) at an additional cost. Please request an up-dated fee schedule from us if you would like to explore this option.
While you are not required to obtain an owner’s policy of title insurance, our firm highly recommends such a policy for your protection. Unless you direct us otherwise, we will obtain a policy of title insurance on your behalf. The title insurance industry provides a number of products. We will obtain the customary/standard policy of title insurance issued by your title insurance company.
Please note that if we have been directed by you to use a particular title insurance company for the issuance of your owner’s policy of title insurance, we will obtain the type of policy that company promotes. Should you have any questions on the types of insurance products provided by the insurance company of your designation, please direct your questions to your title insurance company’s representative.
Matters Not Within the Scope of Representation
Our firm’s representation does not address the following matters: zoning ordinances and regulations; environmental hazards and issues; and septic and well water connections. Additionally, our firm does not review restrictive covenants pertaining to the subject property. The restrictive covenants and amendments thereto can be substantial, and you are encouraged to request a copy of these documents from your Seller and to review them as part of your due diligence. Additionally, our firm does not review any documentation or advise as to whether properties may be owned as investment assets for rental purposes. Purchasers are advised to have policies of homeowner’s insurance effective the date of closing – especially in transactions in which a mortgage lender is not involved and such insurance may otherwise be required. Further, the firm does not review home inspection reports or matters disclosed by MLS or like services.
Additionally, pursuant to North Carolina public policy regarding the effectiveness of existing restrictive covenants, our firm will not take affirmative steps to encumber your property with same unless specifically retained to do so.
As a courtesy, and with your consent, our firm may prepare documents on behalf of your seller which your seller is obligated to deliver under the terms of your purchase contract. The seller (not you) shall be responsible for any costs or fees associated with this accommodation.
Physical Survey of Real Property
While a physical survey of the property is not required, our firm strongly advises our clients to obtain a new survey. A physical survey of the property will disclose many items, including but not limited to, the actual lot size and dimensions, building setback violations, access to rights-of-way, and adverse encroachments (such as driveway or fence improvements which overlap boundary lines). Our firm does not order or obtain surveys for clients, but we will review surveys for no charge or fee.
Buyer Funds to Close
Please note that all funds for closing must be wired to our real estate trust account with TowneBank. We do not accept certified/cashier’s checks, ACH transfers or money orders.
Be sure to verbally verify wiring instructions with an employee of our firm prior to initiating the funds transfer. BEWARE OF WIRE FRAUD SCAMS. Wiring instructions will always be sent by our firm by secure email and will never be revised.
Our firm will also provide final figures to all parties involved in the transaction. The settlement statement provided to all parties is specific to that transaction and contains non-public information. By acknowledging this engagement letter, you consent to our firm distributing copies of the settlement statement to parties as we deem necessary.
Release of Information to Interested Parties
Our firm will also provide final settlement figures to all parties involved in the transaction. The settlement statement provided to all parties is specific to that transaction and contains non-public information. By acknowledging this engagement letter, you consent to our firm distributing copies of the settlement statement to parties as we deem necessary.
Transfer of Keys/Possession
Under the terms of most purchase contracts used in North Carolina, the closing is not final until the Deed has been recorded. If time is of the essence with the regard of your gaining access to the property, we advise that prior to the day of closing you engage the Seller in a discussion as to when the keys and possession will be delivered.
The undersigned agrees to hold Renger & Reynolds, PLC harmless for any unauthorized delivery, conveyance, loss or damage to any keys or other incidents of ownership left in the firm’s possession.
Terms and Conditions Regarding an Earnest Money Deposit Held By Our Firm
If you or your agent direct Renger & Reynolds, PLLC to retain your Earnest Money Deposit (EMD) pursuant to the terms of your purchase contract, Renger & Reynolds, PLLC shall agree to such arrangement so long as you agree that should your transaction not close and you are entitled to a refund of the EMD, Renger & Reynolds, PLLC may deduct $200.00 from your EMD refund as payment for administrative and custodial fees, title examination expenses, and/or other services in conjunction with your representation. If you do not agree with the fee arrangement set-out in this paragraph, contact us immediately so that we may begin the process of returning any EMD we are currently holding on your behalf.