Beginning January 1, 2018, Federal Title & Escrow Company will be performing Seller-Side “Split” Closings; a new service to sellers and past clients.
What is a Seller-Side “Split” Closing?
In the DC Metro area, because the buyer pays for both owner’s and lender’s title insurance, it is the buyer’s right to choose the title company who will insure title. As a result, and typically, the buyer and seller identify a single title company in their sales contract and agree to use the title/closing services of that title company to handle both sides of the transaction (i.e., buyer-side and seller-side). In other words, the seller generally agrees with the buyer’s selection of the title company and that title company performs duties on behalf of both the buyer and the seller.
However, in large part due to our visibility through online customer reviews, marketplace brand identity, and past client retention, Federal Title has experienced a growing demand among sellers to handle their side of the transaction when the buyer selects a title company other than Federal Title. For example, in the GCAAR contract, paragraph #6, the buyer selects and identifies the title company as XYZ Company and, as we are seeing more and more often, sellers add a provision within that same paragraph that reads “*Seller selects Federal Title & Escrow Company to conduct settlement on behalf of Seller.” By doing so, the parties have agreed to a “split” closing in which Federal Title will perform duties on behalf of the seller and XYZ Company will perform duties, including the insuring of title and handling escrow funds, on behalf of the buyer. The two title companies will coordinate to complete the closing.
What duties and functions will Federal Title be performing on behalf of Sellers?
Beyond making available an attorney staff to answer questions throughout the closing process, Federal Title will be performing the following specific items on behalf of a seller in a designated split closing transaction:
- Reviewing the title report as provided by buyer’s title company
- Assisting with title clearing efforts as needed
- Preparing/drafting an attorney-certified deed of conveyance
- Ordering/obtaining mortgage payoff statements
- Reviewing seller closing documents, including settlement statement/CDF
- Conducting seller-side closing (explaining documents, obtaining signatures, and notarization services)
- Delivering executed documents, together with net proceeds disbursement instructions, to buyer’s selected title company
How do I order Seller-Side “Split” Closing services from Federal Title?
We made our way to Dupont Circle to check out this quiet courtyard condo with one spacious bedroom, a spa-like bath, and a private balcony. This sophisticated yet elegant unit has hand scraped wood floors, walls of windows, and crown molding throughout. The high-end kitchen features stainless steel appliances and granite countertops for that aspiring chef. The building amenities are plentiful and include a gym, a rooftop deck, a party room, bike & rental storage, building security and more! This pad is considered a walker’s paradise because you are steps away from the Metro, restaurants, stores, and more. The property is listed at $349,340.
Assuming a homebuyer puts down 5 percent, their cash-to-close would be $28,036 and monthly mortgage payments would be approximately $1,531. You’ll also receive a credit of $750 when you choose to use Federal Title & Escrow Company for settlement services when ordered online. Additionally, for a complete picture of what your cash-to-close figures would be, including seller’s net proceeds from the sale and such, please view the Close It! Web version or download the free Close It! iOS app.
Question from a client: The buyers are going to do a rebuild of their home. Is the seller still required to do a radon test or can we get an exception?
Answer from an attorney: Montgomery County’s Radon Testing Requirement Act provides an exception that does not require radon testing when the “home is to be converted by the buyer into a use other than residential or to be demolished.
Make it a December to remember when you purchase this immaculate house on the hill in the subdivision of Brookland. This home features four sunlit bedrooms and five cozy bathrooms with panoramic views to watch your children play outside. The gourmet kitchen is fully loaded and includes granite countertops plus state-of-the-art appliances alongside a separate dining room for entertaining. You won’t have to worry about parking because you have your own driveway with a two-car garage – a priceless commodity in the district. You're also steps away from the Metro, stores, and dining so it’s easy to run errands or walk to lunch nearby. This property is listed for $999,000.
Assuming a homebuyer puts down 20 percent, their cash-to-close would be $225,975 and monthly mortgage payments would be approximately $2,969. You’ll also receive a credit of $750 when you choose to use Federal Title & Escrow Company for settlement services when ordered online. Additionally, for a complete picture of what your cash-to-close figures would be, including seller’s net proceeds from the sale and such, view the Close It! Web version or download the free Close It! iOS app.
Federal Title has teamed up with the Capital Area Food Bank to help fight hunger in the DMV with food drives at both our office locations. Our goal is to contribute 50 pounds of their most wanted food with support from people like YOU. Please help support our mission by donating canned goods to either of our office locations mentioned below by Thursday, November 30, 2017. FRIENDSHIP HEIGHTS
5335 Wisconsin Ave., NW #700
Washington, D.C. 20015 U STREET / LOGAN CIRCLE
1803 14th Street, NW, Third Floor
Washington, D.C. 20009