How to Properly Fill Out or How to Understand the Contract
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We are going to talk about the contract that was dated April 2017. It is the most recent contract and thereby people are asking a lot of questions about how to properly fill out or how to understand the contract. Therefore, we just want to go through the contract of what we look for as a title company on the contract to make sure that you are filling it out properly.
However, there are also a couple of tips and tricks to make it a little bit easier for the settlement company or the lender that is reviewing this contract in order to get ready for closing. We are going to go through the most recent contract and all of the fill-in-the-blank sections.
Homeowners Insurance Coverage (For Customers)
One of the common mistakes that we see with this section is that people are putting the owner of the record as a seller. All that means is now somebody else has to do the work to find out who actually owns the property. However, we are going to give you a little tip. If you go to your local property appraiser site you are going to see someone listed on there that is typically the legal title holder of the property unless something else was done that was not recorded in public record. Therefore, what we want you to do is that name match up with your seller the person that is going to be signing the homeowner’s insurance coverage if not you should ask the question as to what is different and why is it different.
We always tell people to put their marital status that is going to help. The title company handle this transaction much easier as they do not have to keep asking are you single are you married. It will make it very easy while calculating home insurance quotes calculator. Therefore, if you have two people and they’re married husband and wife or maybe two single people whatever their marital status is put that on the contract too to make it a little bit easier for everyone that is reviewing it.
Residential Contract (For Buyer)
Then we go to the buyer. This is going to be the buyer of the property. Again it is very simple but you want to put their marital status and most importantly make sure the names are correct because a lot of times we see misspellings. Therefore, make sure the names are correct on because information will flow through onto the loan documents will flow through on to the title commitment and on to all of the closing documents. Meanwhile, if it is wrong from the beginning and nobody catches it may have problems.
Pretty self-explanatory line eight is the county that the property is located in plus to the right is the property tax ID number which you know you can get from the property appraisers site or the tax collector site.
The legal description is where you can copy and paste the short legal that is on the property appraiser’s website. This is the only time you can do that. We know that on the closing documents and on loan documents we need to have the actual full legal description but in this case, you can copy and paste that short legal for the purposes of the real estate contract.
Personal property items
It includes in the purchase of some hums. It’s listed in the MLS. A lot of times the section that they’re going to reference remember this is all hand in hand. We need to review the contract just as much as you need to help the client draft the contract to make sure all of the terms are outlined in there.