Closing Questions:
Why do Attorneys perform closing in North Carolina?
Examination of title to real property and closing the purchase and/or a mortgage loan involves many legal issues and potential pitfall. Issues often arise involving contract interpretation, inspection and repair negotiations, and legal interpretations regarding title and survey issues. In addition, in North Carolina, title insurance can be issued only upon the opinion of a licensed North Carolina attorney, and only an attorney is permitted to explain the legal implications of the transaction and associated loan documents.
Do I need a property survey?
We strongly recommend that a purchaser of real property obtain a survey of the property by a Registered Land Surveyor in order to uncover problems such as encroachments, restrictive covenant and zoning setback violations, boundary disputes, gaps and overlaps, etc. We believe that a survey is an integral part of your due diligence investigation of the property and our certification of title to the property. Although we consider a survey a prudent investment, unless it is a specific requirement of your lender, the decision to invest in a survey is yours. Because lenders have convinced title companies to insure the lender even if there is not survey, many lenders will tell a purchaser that a survey is not required. White the title insurance companies will insure the lender even though there is no survey, they will not insure a purchaser and, if you do not obtain a survey, your Owner's Policy of title insurance will contain an exception stating that you are not insured for matters that would appear on a survey. We will also have you sign a document at closing stating that we have recommended that you obtain a survey and that we have advised you of the foregoing title exception. Also, we will order a survey at your expense if you do not tell us, in writing, at least 7 days before your scheduled closing that you do not want a survey.
Do I need Title Insurance?
Title insurance is an insurance policy that protects you against defects in the title (ownership) to your property, such as encroachments, property line disputes, lack of legal access, liens against the property, and other potential costly matters. The policy is issued based on the Opinion of Title issued by your closing attorney based on his/her title search in preparing for the closing. If you have a mortgage loan, your lender will require that you obtain a Mortgage's Policy of Title Insurance. We strongly recommend that you allow us to obtain for you an Owner's Policy of Title Insurance, even if it is not required by your lender or you don't have a loan. We will automatically get you an Owner's Policy of Title Insurance unless you tell us, in writing, at least 7 days before closing, that you do not want Title Insurance.
Does my spouse have to be present at Closing?
YES. Even if only one spouse is the Borrower on the loan, there a number of documents that must be signed by the non-borrowing spouse. With the approval of your Lender, your spouse can give you Power of Attorney (which we can prepare) to allow for you to sign the closing documents on your spouse's behalf. If neither you or your spouse will be present at closing and there is some one who can sign on your behalf, we can prepare and have you and your spouse sign a Power of Attorney to allow the your designated person to sign on your behalf. This MUST be approved by your Lender PRIOR to closing.
The Power of Attorney document must be limited and specific to the closing transaction.
What do I bring to Closing?
Personal ID:
You will need to bring 2 forms of identification, one of which, should be a valid driver's license or passport.
Funds:
The North Carolina Good Funds Settlement Act requires that all funds delivered for Closing be in the form of a wire transfer, a certified or official bank check, or, in our discretion a check drawn on the trust account of a licensed North Carolina attorney or real estate Broker. If your lender timely provides us all the necessary loan documents, we will be able to give you a final amount due from you in sufficient time to enable you to get the required check or wire. If however we are not able to give you the final closing figure, use your Good Faith Estimate amount provided by your lender. The wire transfer/check should be made payable to Moore & Alphin, PLLC, Trust Account.
We will also send you a letter prior to Closing outlining our process of preparing for Closing and any other information that we will need from you. Being proactive with your lender and being prompt in providing information that we and your lender need is crucial to ensuring that the Closing process goes smoothly.