Services for Lenders

We adhere to the title industry Best Practices established by the American Land Title Association.

Our experienced staff has closed nearly every type of real estate financing transaction imaginable; conventional loans, FHA/VA loans, 203K loans, construction loans and land development loans. 

THE PURCHASE AGREEMENT

We strive to provide you and your borrowers with a successful and efficient closing.

The Purchase Agreement is one of the most important documents that you will sign. It is a binding contract between the buyer and seller. It is a blueprint of the transaction, containing the terms and conditions.


The seller and buyer must work together to arrive at the terms of the Purchase Agreement. These terms include, in most cases:

  • Purchase Price
  • Type of transaction (cash, new mortgage, land contract)
  • Amount of deposit
  • Post-closing occupancy
  • Personal property (appliances, etc.)

A sample purchase agreement can be found here.

PLACE THE ORDER FOR TITLE INSURANCE

After the purchase agreement is signed, place an order for title insurance by going to this page. While we are preparing the title insurance commitment, the buyer and seller will need to obtain and provide to us the following information before scheduling the closing:


ITEMS BUYER WILL NEED PRIOR TO CLOSING:

  • Contact information for your lender, and the loan amount
  • Contact information for your attorney (if you have one)

 

ITEMS SELLER WILL NEED PRIOR TO CLOSING:

THE TITLE COMMITMENT

The commitment for title insurance shows the proposed insurance coverage for the buyer and lender (if any). It discloses the current owner(s) of the property, any liens, easements, restrictions, etc., on the property, and any requirements that must be completed by closing. It is important to review the requirements, and make sure that steps are taken to fulfill them before or at closing.

THE CLOSING PACKAGE

When all parties to the transaction are ready, contact our Closing Department at 586-772-7020 or packages@chircotitle.com to schedule your closing. Soon afterwards, we will send the closing documents to all parties for review. These documents typically include:

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I. SELLER SETTLEMENT STATEMENT

The Seller Settlement Statement is a detailed list of all credits and charges that affect the seller’s net proceeds. Credits usually include:

  • Sales Price
  • Tax Prorations

Charges include:

  •  Water/Sewer Escrow
  • Occupancy Escrow
  • Title insurance premium
  • County & State Transfer Tax
  • Mortgage Payoff (if applicable)
  • Document Preparation Fee

II. BUYER SETTLEMENT STATEMENT

The Buyer Settlement Statement is a detailed list of all credits and charges that affect the amount, if any, needed from the buyer for closing. Credits include:

  •  Earnest money deposit
  • Amount of mortgage loan

Charges include:

  • Sales Price
  • Tax Prorations
  • Recording fees
  • Closing fee

 III. BILL OF SALE

The Bill of Sale transfers ownership of personal property located on the property, such as appliances, window treatments, etc.

 
IV. WATER/SEWER ESCROW AGREEMENT

If water and sewer bills are unpaid, the municipality can place a lien on the real estate to collect those bills. This is an agreement for us to hold money, in escrow, until a final meter reading can occur, and a final bill paid. The purchase agreement should address the need for a water/sewer escrow.  Often, a minimum of $200.00 is withheld from the seller’s proceeds to ensure payment of a final water/sewer bill.

 
V. OCCUPANCY ESCROW AGREEMENT

It is not unusual for the seller of a residence to occupy the home for a short time after closing. The Occupancy Escrow Agreement is an agreement where we hold some of the seller’s proceeds after closing, to ensure payment of rent to the buyer for the seller’s post-closing occupancy. It normally sets forth the number of days the seller may continue to occupy the home and the rent to be paid.

 
VI. 1099-S REPORT

We are required by federal law to report to the IRS the sale of the property, including the gross sales price. The seller must provide his/her Social Security Number at the time of closing.

 
VII. PAYOFF STATEMENT

If we receive a signed Payoff Authorization Form, we will obtain a payoff statement for any secured liens against the property. These include mortgages, land contracts, or any encumbrances against the property. These statements show the amounts necessary to pay them in full.

 
VIII. TITLE TRANSFER DOCUMENT

This is usually either a Warranty Deed (which conveys seller’s title) or a Land Contract (which is an agreement to convey title when the contract is paid).

 
IX. PROPERTY TRANSFER AFFIDAVIT/PRINCIPAL RESIDENCE EXEMPTION FORMS

The Property Transfer Affidavit must be signed by the buyer, and filed with the local assessor’s office. Because Michigan law allows its residents the benefit of lower real estate taxes on one principal residence, most buyers will want to file the exemption form when they buy their new home. Most sellers will want to file the form rescinding the exemption on the property sold, so they can claim the exemption on their new home.


THE CLOSING

The closing will be scheduled at a time and place convenient for all parties. You will need to bring the items listed below, along with any specific requirements given in your closing package or directed by the lender. Please be sure to bring these items, as the failure to do so could delay the closing. These items include:

  • Homeowner’s insurance policy
  • Certified/bank checks for the balance of the purchase price
  • Valid driver’s license or state identification card

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