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W W W. R E A L  E S T A T E - C L O S I N G S. C O M

                                                                                                                                               DATE

BUYER and BUYER
RE:          Street , Town                 

Dear Buyer  : 

                This firm has been referred to close the loan for    BANK., on the above-referenced property.  In order to ensure that your closing goes as smoothly as possible, we thought it would be helpful to explain our procedures and to answer some of the more frequently asked questions relating to Closings.   

FUNDS REQUIRED AT CLOSING

                The balance of the down payment on your purchase, plus all Closing costs, should be paid with one bank or certified check.  Please note that checks drawn on any money market funds are not acceptable, unless they are certified.  If you call this office the day before Closing, we will give you the amount that your check should be made out for.  Your check should be made payable to Zouzas Attorneys at Law, P.C. and brought to the Closing.  Any difference between our estimate and the actual amount required at Closing can be covered by a personal check.  If funds are owed to you, we will write you a check at the Closing.   

HOMEOWNER'S INSURANCE

                Please make arrangements to FAX an insurance binder to our office AS SOON AS POSSIBLE DELAY WILL RESULT IN A POSTPONED CLOSING.                The policy or binder must name Bank, as first mortgagee and then specifically state the following words:  "Its successors and assigns, as their interests may appear". BANK.,  BANK ADDRESS address should also appear on the policy or binder.  The property must be insured for at least the amount of the loan or the replacement value of the building.  If you obtain replacement cost coverage, the binder must state that the policy provides 100% replacement cost coverage.  In addition, we must have a receipted bill from your insurance agent indicating that the first year's premium has been paid in full.  These requirements must be complied with or a postponement of your closing may result.   

                If the property is a condominium, you or the Seller must arrange to bring to the closing a certificate of insurance referring to the master policy owned by the Condominium Associa­tion.  This certificate should name you as the owner of the condominium unit and should also name the  Fleet Mortgage Corp.,  its succes­sors and assigns, as their interests may appear" as loss payee.  The Bank will inform us of the amount of coverage required for the condominium unit before the Closing.  No paid bill is needed for a condominium.

Notice to Buyer  
Page Two|
DATE 

TITLE INSURANCE 

                As a condition of making your loan, the bank requires that you purchase a title insurance policy providing coverage for the Bank in an amount equal to the amount of your loan.  You may also purchase a title insurance policy covering you as a homeowner in an amount equal to the purchase price .  As authorized agents of Chicago and Ticor Title Insurance Companies approved by the Bank, we customarily prepare such title insurance policies for both you and the Bank.  Unless you notify us to the contrary, we will assume that you desire to have this office prepare the title insurance policies.  Please note that you are free to obtain title insurance on your own. However, if you plan to do so, please notify this office immediately.  The premium is a one time payment which is included in your Closing Costs and protects you for as long as you own your home.   

TIMING 

                Following your completion of the loan application with the Bank, the Bank instructed us to order a title examina­tion, Municipal Lien Certificate (MLC) from the city or town where your property is located, and a plot plan.  We also notified the Seller of his or her responsibilities with respect to the Closing.  The title examination and plot plan normally require at least three weeks to be completed.  Certain cities and towns are very slow in processing requests for Municipal Lien Certificates. These certifi­cates can sometimes take up to four weeks to obtain.  This office will not be able to close your loan until we have received all these items.  You should review your Purchase and Sales Agreement to be sure that the deadline for Closing is consistent with these time constraints.  If not, you should notify us, your broker or your own attorney at once and make arrangements for an extension, if neces­sary.   

                In addition to the foregoing, please be sure to carefully read your mortgage commitment as to all of the Bank's requirements, especially those conditions which must be met before you are allowed to close.  If you have any questions regarding these conditions, please contact the Bank directly, as we have no authority to waive them or to close the loan until they are all met.   

REAL ESTATE TAXES 

                Taxes are prorated on a per diem basis from the day you as a homeowner take possession, we will make a tax adjustment depending on whether or not the seller has prepaid the property taxes in advance.  If the property you are purchasing is a condominium unit, it may be possible for you to avoid having to escrow real estate taxes.  If the condominium association either (1) currently pays the real estate taxes for the unit out of association fees, or (2) intends to do so (in the case of new condominium projects), then you may be exempted from having to escrow real estate taxes.  In order to obtain the exemption, however, it will be necessary for the Seller to present a letter at Closing signed by the current trustees of the condominium association stating that the associa­tion either currently pays the real estate taxes for the unit out of association fees, or, in the case of new condominium projects, it intends to do so.  

Notice to Buyer
Page Three
DATE

 

CLOSING 

                Once the Bank has authorized us to do so, we will try to accommodate your preferences as to the time of Closing; however, please be aware that most people wish to close at the end of the month or on the first of the month to avoid prepaid interest charges.  For this and other reasons, we cannot guarantee the time you most prefer.  Further, please be advised that title reports sometimes do not arrive in our office until shortly before the Closing date.  The closing date will often be set before the report arrives, subject to the report coming in on time and title being acceptable for the Bank to fund the loan.   

In the event that our title report discloses a problem with the title, we will attempt to notify someone connected with the transaction as soon as possible.  This arrangement does not always give as much notice as we would like, but we will try to minimize any delays that it may cause.   

CLOSING LOCATION 

                The Closing will take place in our office, located at 227 Chelmsford Street, Chelmsford, Massachusetts, on the first floor in the back of the building.   

REQUIREMENTS FROM THE SELLER 

                You or your attorney should advise your Real Estate broker, the Seller's attorney, or the Seller directly that the Seller or Seller's attorney is required to bring the following to the Closing: 

(1) A newly prepared deed conveying title to the Buyer.  A proposed deed should be delivered to this office ten (10) days in advance of Closing.  If the Seller requests this office to prepare the deed, we will do so for a fee of $100.00 to be paid by the Seller at Closing.   We should be notified as soon as possible if this office will be preparing the deed.  If the property is registered land, the Seller must bring the "Owner's Duplicate Certificate of Title", as well as the deed to the Closing.