Our firm has been retained to conduct the closing on the property that you are purchasing. To ensure a smooth transaction please review this engagement letter, sign and submit electronically or print it out, sign it and send it to email@example.com. Also, please upload or provide the following items to our office immediately: Driver's License; Completed Buyer info Sheet (attached) and pay particular attention to section 7 thereof; Who We Represent (Including Disclosure of Dual Representation).
1. Whom We Represent: We represent you to the extent of ensuring that you acquire good and marketable title to the property. We can also advise you on any legal questions concerning title to your property, title insurance, and the covenants and conditions of your loan documents. We represent the mortgage lender to the extent of assuring full compliance with its loan closing instructions.
We do not represent you with respect to the terms of your loan agreement with your mortgage lender. Therefore, please confirm the final terms of your loan with your loan officer or mortgage broker a sufficient amount of time prior to closing to enable you to carefully resolve any disagreements or disputes with the lender concerning the terms of your loan
2. What Services We Perform: We are responsible for conducting the title examination of the property; ensuring the deed of conveyance and loan closing documents have been properly prepared and executed; receiving and disbursing the closing funds properly and pursuant to the closing disclosure prepared by your lender and reviewed by you at or prior to the closing; reviewing the survey prior to the closing if you ordered one; properly closing the transaction and recording the deed and deed of trust; and ensuring the owner's and lender's policies of title insurance are issued in proper form.
3. Title Examination: In our examination of the title to the property you are purchasing, if we are able to locate an existing title insurance policy, we will "tack" to that policy. This means our title examination would begin with the date and time of issuance of that policy, and we will not certify the status of title to the property prior to the date the policy was issued. While defects in title occurring prior to our search prior would not be reported by us if we "tack," any such defects would be covered by an existing title policy, so you should receive the same title insurance coverage as if we had conducted a full examination.
This method of title searching will promote a more expeditious closing and a reduced closing cost to you as we will spend considerably less time conducting the title examination than if we did not tack. Our title insurance company routinely issues title insurance on property based upon these types of title searches, as it is a customary procedure to do so. If you would like to discuss a full title search (30 years) please call us.
4. Title Insurance: Examination of title is an important matter, but even the most careful examination will not reveal certain defects in title. This is the reason for title insurance, which lenders will typically require. We will be securing for the lender a title insurance policy in the amount of the loan principal. We will also secure for you an owner's policy of title insurance that will be issued in the amount of the contract sales price. You will be required to pay the title insurance premium, which is normally computed at a rate determined by statute. This is a one-time fee paid to the title insurance carrier, which covers you for any defects in the title of the property.
5. Survey: If a mortgage lender requires a current map or survey of the property, you will bear the cost of a new survey. You will be responsible for ordering the survey, as we do not order surveys for our clients. Please let us know, if you are going to be sending a new survey, as we must prepare the new legal description from the survey. The title insurance company will insure you even without a survey, but it may not insure you regarding defects that could be disclosed by an accurate survey.
A survey may be beneficial to you in determining, among other things, whether the property of your neighbor encroaches upon the property, accurate dimensions and acreage of the property, or whether an improvement has been erected which encroaches on the property. It is our recommendation that every buyer obtain a survey at the closing.
6. Transfer of Keys: While is it customary to transfer the keys to the property at closing, the Standard Offer to Purchase indicates the keys shall be transferred at the time the Deed is recorded. The deed cannot be recorded until we have received all funds from you and your lender. We cannot guarantee recording a deed the same day for a closing that is scheduled any later than 2:00 PM. We encourage you or your agent to discuss the transfer of keys with the seller before the closing and to not make plans to move your possessions into the property until such time as the deed is recorded unless the seller agrees otherwise.
7. Loan Documents: Unfortunately, it has become the norm to receive closing documents from the various lenders very late in the process, sometimes only minutes before the closing is scheduled to begin. Understand we will do our best to prepare the closing documents expeditiously, but the receipt of the closing package is largely out of our control. If you desire to review your Settlement Statement before closing, please understand we cannot prepare it until the lender has forwarded to us the closing documents and we have had time to prepare it. We suggest you discuss this matter with your lender to facilitate a smooth closing.
8. Restrictive Covenants, Zoning and Usage: It is our practice to provide a copy of Restrictive Covenants, if any, at closing as a courtesy to our buyer clients; however, we do not review restrictive covenants prior to closing unless your survey discloses a possible violation of the covenants. If you wish for us to review your restrictive covenants for any other reason, we will do so for an additional fee. We do not ensure the property, including the structures located thereon, comply with zoning regulations, nor are we certifying as to whether there is surrounding formland. A title examination also does not reveal whether the property is suitable for a particular use.
9. Repairs: Unfortunately, Sellers sometimes do not complete repairs. We recommend you confirm any requested repairs have been completed before the closing. We will not hold funds in escrow for repairs.
10. Cancellation of Liens: As part of the closing, we will ensure all liens against the property are cleared. That includes obtaining payoffs of the Seller's mortgages, if any. While we guarantee payment of the liens, the nature of the practice in this locale prevents us from following up to make sure the liens have been effectively cancelled at the Register of Deeds office. It is the lender's responsibility to cancel such liens, but if it is not done and as such becomes an issue for you in the future, we will provide assistance at that time for an additional fee.
11. Our Fees: Our fees for the above-described services are approximately $750.00 for residential real estate closings under $750,000.00 and $995.00 for residential real estate closings from $750,000.00 to $950,000.00 (unless you have been quoted another fee) which include title examination, copy fees, notary fees. A standard title search fee is $195.00 if applicable. Since our title examination is performed in advance, we will invoice you for the portion of our fee which covers the title examination if the closing is cancelled for any reason, even if your sales contract, if applicable, calls for closing costs to be paid by seller. If there is a foreclosure in your title, which must be examined for accuracy thereof, your fees will increase by approximately $200.00. Should additional services be requested beyond those described herein, additional fees may be incurred. Without limiting the definition of "additional services," examples would include preparation of a power of attorney, subordination, or deed of release, or a simultaneous second mortgage. We may also charge a fee if the closing is delayed or postponed through no fault of our own ofter the closing documents have already been printed. Out-of-pocket expenses, including, but not limited to, wire fees, courier fees, the survey fee, the termite report fee, the title insurance premium, the hazard insurance premium, and the recording fees will be additional costs to you and will be reflected on the closing disclosure.
Property taxes for the current year are prorated between the buyer and seller at closing. In calculating taxes, our firm will base prorations upon either (1) the current year's tax bill, if the current bill has not been issued or (2) prior year's tax bill. All prorations are final regardless of any change in the tax rates by the taxing authorities or annexation of the subject property after the date of our closing prorations.
Closing Expenses: As the buyer of the property, you will incur expenses in this transaction that typically include, but are not limited to, the following: real estate commission; document preparation; HOA transfer fees; and fees for courier services.
Closing figures, Closing Funds, and Disbursement of Funds: Our firm will make every effort to provide you with final closing figures prior to your arrival at our office. In some instances, we are unable to meet this goal. Under North Carolina's Good Funds Settlement Act and State Bar regulations, all amounts due from you at closing (if any) must take one of the following forms: cashier's check, drawn on or issued by a FDIC-insured financial institution; wire transfer; or money order. Please make checks payable to: Plyler, Long & Corigliano, LLP, Trust Account.
***IF FUNDS DUE FROM YOU ARE IN EXCESS OF $500.00 FUNDS MUST BE WIRED TO OUR TRUST ACCOUNT. NO OTHER FORM OF FUNDS WILL BE ACCEPTED! NO EXCEPTIONS!**
*** Please call our office to verify any wiring instructions that you receive via email. We are not responsible for incorrect wiring instructions sent to you by any third party.
Pursuant to the N.C. Gen. Stat. §45, ALTA Best Practices, State Bar Rules and in order to protect your funds, all funds in excess of $500 must be received by wire to Plyler, Long & Corigliano, LLP. For this transaction, the only bank account we will be using is our IOLTA Trust Account, described and partially redacted below: Plyler, Long & Corigliano, LLP IOLTA Trust Account First Citizens Bank & Trust Company 111 Jefferson Street, Monroe NC Partial ABA #300 Partial Account # 1916 BEFORE SENDING ANY WIRE, CALL OUR OFFICE AT 704-289-2519 TO VERIFY THE INSTRUCTIONS. WE WILL NOT CHANGE WIRING INSTRUCTIONS. IF YOU RECEIVE WIRING INSTRUCTIONS FOR A DIFFERENT BANK, BRANCH LOCATION, ACCOUNT NAME OR ACCOUNT NUMBER, THEY SHOULD BE PRESUMED FRAUDULENT. DO NOT SEND ANY FUNDS AND CONTACT OUR OFFICE IMMEDIATELY.