Thank you for permitting The McCall Law Firm, PC to assist with your purchase of the above-referenced real property. We look forward to working with you and will do our best to handle the transaction to your satisfaction. The purpose of this correspondence is to explain very generally what you will expect in the closing process and to discuss to you the scope of our representation.
Please give the following matters your prompt and careful consideration:
- REPRESENTATION: We represent you to the extent of ensuring you acquire good and marketable title to the property. We can also advise you on 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, make sure you know the terms of your loan a sufficient amount of time prior to closing to enable you to carefully resolve any disagreements or disputes with the lender concerning those terms. Unless otherwise disclosed, we will only represent seller in the limited capacity of document preparation, as outlined below.
- SERVICES WE PERFORM: We are responsible for (a) conducting the title examination of the property; (b) ensuring the deed of conveyance and loan closing documents have been properly prepared and executed; (c) ensuring the closing funds are properly received and disbursed pursuant to the HUD-1 Settlement Statement (and reviewed by you at or prior to the closing); (d) that the map or survey (if requested) is ordered and reviewed by us prior to the closing; (e) ensuring that the transaction is properly closed and the deed and deed of trust are properly recorded in the Register of Deeds; and (f) that the owners and lenders policies of title insurance are issued in proper form.
- DUAL REPRESENTATION: We will occasionally be requested by the sellers to prepare the deed of conveyance which transfers the property. North Carolina law allows us to perform this task if the buyers do not object. We will prepare the deed in accordance with the customary standard of care listing all customary exceptions. Of course, if a dispute later arises between you and the seller, we must withdraw from the transaction and would not undertake to represent either side. Please let us know immediately if you object to this representation.
- TRANSFER OF KEYS: While it is 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 of the funds from you and your lender. 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.
- RESTRICTIVE COVENANTS, ZONING and LAND USAGE: It is not our practice to print covenants or restrictions for our buyer clients. If you desire that we locate and produce a copy of any Declaration, Covenant or set of Restrictions, please make your request prior to closing. If you plan on making any improvements to the property, even as slight as the erection of a fence, please review the DCR as soon as possible as there may be an additional nominal copy fee. Many planned communities have restrictions on the number and type of pets allowed, the color a house can be painted, the type of mailboxes allowed, etc. Therefore, it is in your interest to review the DCR before closing. We do not insure the property, including the structures located thereof, complies with zoning regulations. Please call us if you have any questions about this issue. A title examination also does not reveal whether the property is suitable for a particular use.
- MARITAL STATUS: It is imperative we understand your marital status well in advance of closing. Married persons are the beneficiaries of certain rights that may impact the closing. If you are married, your spouse will need to be present at the closing. If you are separated from your spouse, we will need to know that fact well in advance of closing so that we may prepare accordingly.
- IDENTIFICATION: Each party acquiring an interest in the property (i.e., each party named on the deed), and their respective spouses, must bring TWO forms of identification one of which must be a current driver's license or other appropriate state or federal identification with their photograph. Please call us if you have any questions regarding acceptable forms of identification for the second ID or if this will be an issue.
- OUR FEE: The McCall Law Firm's standard fee for our closing services is $950.00 (This includes overnighting of loan packages, copies, etc.) However, if we are required to perform additional services beyond those described herein, additional fees may be incurred. Without limiting the definition of additional services, examples would include travelling for closing, preparation of a power of attorney, subordination agreement, encroachment agreement, separate overnights required by lender, deed of release, or closing of a simultaneous second mortgage. We may also charge a fee if the closing is delayed or postponed through no fault of ours after the closing documents have already been prepared. The McCall Law Firm reserves the right to charge a 50% cancellation fee if this file is cancelled after title work is completed. Please note that in most cases, if a request is completed for an item or service (i/e/, inspections, homeowners association certification, survey, etc.), it must be paid for even if the closing falls through. Some items, such as hazard/homeowners insurance, can be cancelled.
RELEASE: By signing this Letter of Representation, Buyer(s) expressly authorize The McCall Law Firm, PC to release any and all information pertaining to the aforementioned transaction to Buyer(s) Real Estate Agent, including, but not limited to, the Closing Disclosure.
As soon as we receive a final approved Closing Disclosure from your lender, we will let you know, either directly or through your realtor the amount of funds you will need to bring to closing. It is our hope the closing will go smoothly, and this office will do everything reasonably possible to bring this about. Please do not hesitate to call us should you have any questions or concerns.