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19 Cards in this Set
- Front
- Back
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NCBA/NCAR 2-T offer to purchase and contract |
makes a distinction between closing and settlement. Note this except from the forms terms and conditions brokers who use this form should also point out to buyers and sellers that the NC contract staes that buyers will not get possesion of the property until closing and that sellers will not get their funds until that time as well |
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Possesion |
possesion including all means of acess to the property (keys,codes, garage door openers ect)shall be delivered upon closing |
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due diligence |
DDP (due diligence period) in the NCBA/NCAR 2-T offer to purchase and contract is the buyers opportunity to investigate the property and the transaction contemplated by this contract to decide whether buyer, in buyers sole discretion will proceed with or terminate the transaction |
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buyers loan |
while other contract forms may not permit buyers to back out of a contract if they fail to obtain financing, there is no seperate loan financing condition in the NCBA/NCAR 2-T OPC |
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wood destroying insect report |
many homes in NC are made of wood, and accordingly, buyers should be encouraged to obtain a wood destroying insect report. |
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repair/ improvements negotiations |
although there are no mandatory reairs required by the NCBA/NCAR 2-T OPC the buyer and the seller can negotiate anything during the DDP. the actual repairs/ imporvements do not need to be completed prior to the expiration of the DDP but the negotiations need to be ratified during the DDP or the buyer may purchase the the property in its current condition |
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right to terminate |
if the buyer is not satisfied with the property condition, terms of the contract the loan application, repair negotiations, or anything else, the buyer may terminate the contract in writing to the seller or the sellers agent by 5pm on the date stated in the DDP clause. |
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finalizing the closing |
the settlement agent can only disburse funds to the appropriate parties ( including real estate brokers) after recordation of the deed and the deed of trust. this delay in the disbursment of the proceeds is mandated by NC good funds settlement act |
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conducting the closing/ settlement meeting |
in NC closings are conducted by gathering the parties and exchanging copies of the documents |
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settlement agent |
usually conducts the proceedings at a closing and claculates the division of income and expenses between parties (called settlement) in NC the settlement agent has historically been the buyers attorney bc so many of the functions performed at settlement are of a legal nature |
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Dodd-Frank Wall Street Reform and Consumer Protection Act |
congress passed this act following the economic recession and the mortgage market meltdown during the mid 2000s. The dodd frank act is considered one of the most comprehensive financial regulatory system reforms in decades |
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disclosure requirements/ TRID |
any reference to the number of days by which the lenders and settlement agents must provide documents refers to BUSINESS DAYS. for purposes of these disclosures, business days include saturdays but exclude sundays and ten federal public holidays |
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loan application |
within 3 days of receiving the loan application, lenders must provide the following special information booklet the booklet provides the borrower with general information about shopping for a house and a loan plus information about the closing process and a LOAN ESTIMATE- (LE) the 3 page LE (formerly the good faith estimate) makes it easier for borrowers to compare loan conditions from one lender to another |
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kickbacks and referral fees |
RESPA prohibits the payment of kickbacks or unearned fees, incident to or as part of a real estate settlement service. it prohibits referral fees when no services are actually rendered. |
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debit/credit |
a debit is an amount to be paid by the buyer or seller a credit is an amount payable to the buyer or seller |
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Excise tax |
NC requires an excise tax ( formerly known as revenue stamps) on the gross revenue generated by the sale of real estate. this tax sometimes called a deed trasnfer tax, is levied at a rate of $1 per $500 of value, or portion thereof. will always round up to the nearest dollar if its in cents |
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recording expenses |
usually such items include recording the deed that conveys title to purchaser and the mortgage or deed of trust excuted by the purchaser. if the NCBA/NCAR 2-T offer to purchase and contract is used recordation of the deed is required by contract to complete the closing process |
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prorations |
most settlements involve a division of financial resposibility betweent he buyer and seller for such items as loan interest, taxes rents, and fuel or utility bills |
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general rules for prorating |
in NC the seller owns the property on the day of settlements ( regardless of what time of day the settlement meeting is scheduled) and prorations or appointments are usually made through and including the day of settlement. it should be noted that in some states it is the custom for the buyer to pay for expense of ownership begining on the day of closing |
