Protecting Your Buyer's Money

A Look at Paragraph 8-B of the FR/BAR Contract

Marlen Rodriguez, President
HomePartners Title Services

When it comes to the execution of a real estate contract, one of the most important things you have to do is keep your client’s money safe. Did you know that many buyers who lose their escrow deposit do so because they did not track and follow the requirements of the sales contract? Mortgage contingencies do not automatically mean that if a buyer doesn’t obtain financing, they receive a return of their deposit.

The FR/BAR contract requires both application and diligence by the buyer (and by you, their Realtor®). The contract also requires that the buyer notify the seller prior to the loan approval due date if they have not been able to secure financing. This is the window for either requesting termination and a return of the deposit or requesting an extension of the due date.

If the due date comes and goes and the buyer fails to notify the seller, the contract treats that lack of action as moving forward toward closing. Then, if the closing does not occur on the closing date, the deposit may be forfeited. Another important feature of this provision is – should the buyer fail to notify the seller as required, then for 3 days after the loan approval due date, the seller may choose to terminate the contract.

Why would they do so? The seller may want to work with another buyer for more money or perhaps to a cash buyer. It’s important to provide these guidelines to your buyers and sellers so that they know their responsibilities under the contract. You can find these guidelines in paragraph8-B in the FR/BAR contract. This provision is also SO important that you should review it on a regular basis.

HomePartners Title and our Legal Counsel, Rose Sheehan, provide contract training for Realtors® on a regular basis. Be sure to inquire about the next training in your area.

Visit HomePartnersTitle.com for any and all of your title needs!

Proper Identification at the Closing Table

Did You Remember Your ID?

Marlen Rodriguez is President of HomePartners Title Services

Buying or selling a home is an incredibly detail-oriented process. Outside of either finding and agreeing to purchase your dream home or finding a buyer who is willing to make an acceptable offer for your current home, there are copious amounts of paperwork involved in getting to the closing table. 

Once you get to the table to sign closing documents, you won't want to waste a moment on an easily avoidable mistake like forgetting a proper form of ID. Not all identification documents are acceptable at closing, and some correct forms of ID might not have the correct signature. Simple enough, right? 

Not to worry. Marlen Rodriguez is our guest blogger today and has years of experience navigating the closing process with buyers and sellers during her time with our Family of Services division Title company, HomePartners Title. I'll let her explain it.

One of the most important items you need as you get to the closing table is proper identification. In order to defend against fraud and forgery, state notary laws include requirements that parties signing documents in real estate transactions provide acceptable forms of identification at closing.

The best documents include a valid state-issued driver’s license or non-driver ID, a United States passport, or a valid U.S. military ID. The documents must be current, have your photograph, physical description and signature of the party. They must also contain a serial, or other identifying number.

Unacceptable forms of ID include a temporary driver’s license without a photograph, Social Security card, employee ID badge, or a permanent resident ID card.

It’s also important to note that the signature on the closing documents must match the signature on the documentation that you bring with you to the closing table. An abbreviated form of signature may be acceptable, but you should clear this with your lender and your title agent prior to the actual closing date. A good tip is to discuss this with your title agent early in the process.

If you have any questions or concerns about forms of ID or signatures on documents, our representatives at HomePartners Title are ready to answer them and make sure you are prepared for your closing.

www.HomePartnersTitle.com