PWSAdmin, Author at Attorney's Closing Services

How to Recognize Real Estate Wire Fraud and Tips to Prevent It

March 13, 2018 by PWSAdmin

How to Recognize Real Estate Wire Fraud and Tips to Prevent It
Real estate wire fraud is becoming an all too common occurrence as people who are in the process of closing on a home or are in the market find themselves victims of a vicious scheme to defraud them of their hard-earned money.

Many of these communications come in the form of an email, and to the untrained eye, these emails can seem legitimate. However, there are certain red flags to look for that can save potential victims from falling prey to these tactics.

Beware of wire transfer requests– It is a good rule of thumb that any email requests for wire transfers of money for closing should raise an immediate red flag. If an email like this is received, immediately contact the real estate or settlement agent via phone.

Be cautious when emailing any financial information– Many title companies and lenders require wire instructions be faxed, sent by courier or requested in person. The risk of fraud through email or even phone is too great. If it is the buyer making the request to wire transfer, this should only be done in person at the financial institution.

Be cautious when replying to emails– Many times, scammers will use email addresses that seem legitimate, perhaps just adding an extra letter or character. If the name looks similar to someone the customer has been working with, instead of simply replying and emailing, hit reply, delete the email address and re-type the intended address to make sure it reaches the right person. If that person never sent the initial email, this could be a way of alerting him or her about what is going on.

Be careful when opening attachments– Do not open attachments by clicking on links and downloading files from emails. Before doing anything, check the sender’s email address. Do not just assume by the name alone that the email is from a legitimate source.

Verify the sender– Many times, email accounts, such as Gmail and Outlook do not include the sender’s email address by default. The email user will need to click or hover over the name to see the address. Another idea is to look at the signature line in the email. If the email addresses do not match, the sender is likely not someone you know or can trust.

Be wary of priority emails– If the message is marked as “Urgent” or “Rush” and the sender is asking for a quick transfer of funds, this is a strong indication of a scam. If the email ends in all caps statements such as “SEND AS SOON AS POSSIBLE,” this should signal another red flag.

What Can Be Done to Prevent Fraud?

If someone is going through the closing process, it is important to stay informed as to the protocol for transferring money. If any questions come up regarding wire transfer instructions, this communication should come from the real estate agent or settlement agent.

Many times, financial institutions are more than willing to work with the borrower to identify any issues before sending wire transfers. Many financial institutions will do this for their customers without asking and will alert their clients if they see any potential for fraud.

Another recommendation is to have the real estate or settlement agent confirm receipt of the wire transfer a few hours after the transmission is made.

Lastly, prevention can be as simple as making sure the user’s anti-virus and malware software is current and up-to-date. Also, ensure that email addresses are protected with strong passwords and that these passwords are regularly changed.

If you or someone you know believes they have been the victim of financial fraud, contact your financial institution immediately and the FBI’s Internet Crime Complaint Center at www.ic3.gov.

Attorneys’ Closing Services (ACS) provides quality, professional, timely and cost-effective documents to clients seeking assistance with real estate transactions. Built on honesty, integrity and attention to detail, ACS is owned and operated by Ron Conte and David Trevett, practicing real estate attorneys who are members of The Florida Bar and its Real Property, Probate and Trust Law Section, and have more than 50 years of combined experience in the fields of law and real estate. When you partner with ACS, you benefit from years of experience and an unmatched team approach. Whether your office needs assistance with full or partial closing processing services, ACS stands ready to assist you at a moment’s notice. We would be honored to work with you on any and all of your real estate closings. To learn more, click here or call us today at 407-270-8855 to see how we can help you.

The 5 Keys to Closing a Successful Commercial Real Estate Transaction

March 26, 2017 by PWSAdmin

Commercial real estate closings do not just happen, all of the parties involved and their respective counsel pave the way for a successful closing. At Attorneys’ Closing Services, we help law firms, title companies and businesses confidently handle their commercial real estate closings. When it comes to the close, every detail matters.

Here are 5 important tips to remember when closing a commercial real estate transaction:

Establish a plan. Developing a transaction plan is the first step. The plan must guide contract negotiations and the steps necessary for closing and post-closing. If there are certain zoning requirements, availability of utilities, or the confirmation of structural elements of a building, the plan along with the purchase agreement must address those issues and be included as part of the closing requirements.
Assess the issues. It is important to be prepared for issues that can arise during a commercial closing. Not understanding and resolving these issues timely is one of the greatest causes of transaction failure. “Risk-shifting” techniques can effectively mitigate transaction risks. This can include title insurance with appropriate use of available commercial endorsements. When addressing risk-shifting opportunities, an experienced commercial real estate attorney familiar with available commercial endorsements can often overcome certain title obstacles through creative and effective contract drafting and the assistance of a knowledgeable title underwriter.
Be prepared for third party delays. It is important to recognize that the closing deadlines important to the parties involved in the transaction are oftentimes meaningless to un-related third parties whose participation is vital to the close. These third parties can include government agencies or any vendor who is not a representative of the buyer or seller. An experienced commercial real estate attorney can recognize when a delay is occurring and push for a timely response when necessary. They have developed relationships with reputable vendors and third parties over the years who can expedite the transaction on the table.
Coordinate all closing requirements. New issues often arise towards the end of a closing, oftentimes because of the necessity of relying on independent third parties and having to provide certifications and showings dated in close proximity to closing. As the closing approaches, real estate brokers, commercial real estate counsel, and all necessary representatives of the buyer and seller should remain available and ready to respond to the changing demands and circumstances.
Proactively address potential obstacles. Sounds simple, but creative problem solving in any commercial closing transaction depends on a process that allows you to gather information and resolve issues proactively and predict the ever-changing demands of a commercial closing transaction.

At Attorneys’ Closing Services (ACS), we allow our clients to cut staff time and come to the closing table fully-prepared. When you partner with ACS, you have more than 50 years of combined experience in the fields of law and real estate on your side! ACS assists real estate attorneys and title companies with a variety of timely services that include complete closing document preparation, preparing commitments and policies, ordering products to satisfy title requirements and trust account reconciliation. Working closely with attorneys, title agents and lenders, we deliver professional closing documents of the highest quality – from the initial draft HUD-1 / Closing Disclosure to the final closing package.

Whether your office needs assistance with full or partial closing processing services, ACS is ready to step in at a moment’s notice. We tailor our services to meet each client’s individual needs. While we handle the processing, you can remain the closing agent and collect the premium. We would be honored to work with you on any and all of your real estate closings. Call us today at 407-270-8855 to see how we can help you.

To learn more, visit https://attyclosingservices.com/about-us/.

Tips to Clearing the Most Common Closing Hurdles

March 15, 2017 by PWSAdmin

Anticipating problems before they happen will help your closing stay on track. Having a contract is just the beginning. Between 10 percent and 14 percent of pending real estate transactions do not close. Another 20 percent are delayed, according to a Realtors Confidence Index survey conducted by the National Association of Realtors®.

Setting realistic client expectations and educating your clients about possible issues that can occur at closing are essential- from buyers who may not qualify for a loan to delays with title. Most hurdles that delay or prevent a closing fall into three main categories, which include:

1. Loans & appraisals

2. Titles

3. Home inspections

New lending and closing regulations have resulted in more delays. Having a thorough understanding of the rules and allowing time for compliance will help you get over this hurdle. Changes to the federal Truth in Lending Act and RESPA have slowed down the closing process. The updated HUD-1 form adds a few more hours of document preparation.

Lending rules have also made it harder to close on time if circumstances change late in the deal. Amendments to the Truth in Lending Act require a three-day disclosure period if a borrower decides to change the loan amount or anything else that can change the interest rate.

To prevent delays, avoid last-minute changes whenever possible. If the matter is out of your control, the best thing you can do is help your client have realistic expectations about how long the transaction will take.

Title defects are another major closing hurdle, but one that can be avoided with the proper preplanning. Adding a checklist to the purchase contract can help identify issues that can hinder a title- basically anything that can be tied to the property such as bankruptcies, oil and gas leases, etc. Short sales and bank-owned properties are particularly prone to title issues. HOA fees and unpaid repair costs can have an effect on the title and delay a closing.

If a home inspection uncovers serious issues, the time it takes to negotiate which party pays for repairs and gets estimates, can result in big delays for a closing. Alerting buyers to possible high-cost repairs and suggesting that they factor those potential repair costs into their offer can help minimize post-contract negotiations.

By focusing in on these most common closing hurdles, you can successfully take control of your transactions and master the close!

Attorneys’ Closing Services (ACS) assists everyone from the sole practitioner to fully-staffed offices. We offer full service processing for commercial and residential attorney title agents. Whether your office needs assistance with full or partial closing processing services, ACS stands ready to assist you at a moment’s notice. ACS is owned and operated by Ronald J. Conte and David H. Trevett, practicing attorneys who have more than 50 years of combined experience in the fields of law and real estate. We would be honored to work with you on any and all of your real estate closings. To learn more, click here or call us today at 407-270-8855 to see how we can help you.

Issues that Can Impact a Florida Closing

December 4, 2016 by PWSAdmin

Closings on residential and commercial real estate occur every day in Central Florida. Whether it is a condo being purchased as a retirement home or investment rental; homes being sold to families moving across town or to the State; or a transaction involving a commercial building, some may be experiencing Florida real estate laws at work for the first time.

In this posting we will focus on issues that can impact a Florida closing, including but not limited to environmental issues, cash transactions, updates made to time frames and closing documents.

Environmental Issues. Florida has unique environmental issues. Not only do we have to worry about the threat of hurricanes, but property damage can be caused by mold, sinkholes and other naturally occurring disasters. With these issues, comes State and Federal environmental laws designed to protect real estate, particularly when it comes to residential real estate. Closings in Florida are impacted by several environmental concerns, including requirements to disclose the dangers related to lead paint, asbestos, toxic mold, and/or radon when purchasing a home. The Environmental Protection Agency has an online tool where you can input a location or zip code and learn about the environmental concerns of a particular area. Buying commercial property in Florida also comes with risks, such existing waste contamination that may leave a purchaser liable for cleanup and damages, even if the purchaser did not cause the spill and had no reason to know it existed.

Cash Transactions. You may be surprised by how many homes are purchased in cash here in Florida. It is common that buyers from foreign countries purchase their Florida condo using cash, and do not obtain a mortgage or home loan. Purchasing a home for cash can make a big difference in a Florida closing. In many ways this simplifies the process because there is no lender involvement. However, the absence of a lender means the buyer needs to be more cautious in protecting their interests in the transaction. Lender involvement can help identify potential risks and problems in the deal.

Updates to Florida Closing Forms. The disclosure forms used in a Florida residential real estate closing changed on August 1, 2015. For instance, the HUD-1 Form is no longer used (that is the document that shows all of the costs related to closing the transaction, including the costs and expenses related to obtaining a mortgage). Instead, a new Closing Disclosure (CD) is used (it replaced both the HUD-1 Form and the Truth-in-Lending Disclosure form). New time frames are required by the current law, including a three day deadline for mortgage lenders to provide their home loan closing documents. For more on these requirements, you can view the information provided by the Consumer Financial Protection Bureau.

Closing Table Protocols. Some buyers and sellers may not realize that Florida does not require everyone to sit around the closing table, and sign all of the closing documents at the same time, when the transaction closes. Residential closings can be done in what is called a “mail away.” Closing documents can be sent to either the buyer or the seller via overnight delivery, email attachment, or fax. Funds can be provided via online transfer or by wire.

Attorneys’ Closing Services provides quality, professional, timely and cost-effective documents to clients seeking assistance with real estate transactions. Built on honesty, integrity and attention to detail, ACS is owned and operated by Ron Conte and David Trevett, practicing real estate attorneys who are members of The Florida Bar and its Real Property, Probate and Trust Law Section, and have more than 50 years of combined experience in the fields of law and real estate. When you partner with ACS, you benefit from years of experience and an unmatched team approach. Whether your office needs assistance with full or partial closing processing services, ACS stands ready to assist you at a moment’s notice. We would be honored to work with you on any and all of your real estate closings. To learn more, click here or call us today at 407-270-8855 to see how we can help you.

Mortgage Industry Pushes for Improved TRID Consumer-Disclosure Rules

November 11, 2016 by PWSAdmin

Several mortgage and housing trade groups have requested that the Consumer Financial Protection Bureau (CFPB) go a step further in cleaning up the agency’s TRID consumer-disclosure rules, the increased regulation that took effect one year ago.

Industry groups are asking that the bureau extend a ‘soft enforcement’ period for several months, and proposed changes that the CFPB had previously declined. For example, the industry wants the bureau to establish a way for companies to correct errors found in the documents after the loan has been originated. This would help protect a lender from legal liability should the loan ultimately default, and reassure issuers of mortgage-backed securities. TRID errors have shown up in recent loans that were to be collective into securities.

Industry groups also requested the bureau give lenders more flexibility around the time of the closing. TRID has largely forced companies to lock in mortgage rates and the consumer’s expenses three days before closing. The CFPB has proposed to allow companies to make adjustments of the loan costs in the final closing document, but the industry has requested further modifications.

The industry is asking for numerous technical changes that will clarify aspects of the rule.

TRID, or the TILA-RESPA Integrated Disclosure rule, took effect on Oct. 3, 2015, creating new streamlined forms on the initial rate disclosure and final closing documents. It also established a timeline for disclosures. The rule was intended to make it easier for consumers to understand, but the changes created huge technical challenges for the industry. In April, CFPB announced it would make changes to TRID using the industry’s input.

The Mortgage Bankers Association, the National Association of Realtors and other groups submitted separate letters ahead of the deadline, including their comments and suggestions. The CFPB is expected to publish a final rule sometime next year.

Not up-to-date or unsure of the new TRID Rules? Losing a paralegal? Tired of tedious bookkeeping? Let Attorneys’ Closing Services (ACS) save you time and money. Whether your office needs assistance with full or partial closing processing services, ACS is ready to step in at a moment’s notice. We tailor our services to meet each client’s individual needs. We offer full-service processing for commercial and residential attorney title agents and charge a flat fee for our services. While we handle the processing, you can remain the closing agent and collect the premium. We would be honored to work with you on any and all of your real estate closings. Call us today at 407-270-8855 to see how we can help you. To learn more, visit https://attyclosingservices.com/about-us/

Key Title Issues that Can Derail a Florida Real Estate Closing

November 3, 2016 by PWSAdmin

In Florida, a legal conflict between the buyer, seller and a third party with a vested interest in the property can quickly derail the closing in a real estate transaction.

These third parties can include contractors who have performed services to improve the property prior to sale and have filed a lien in the public records to ensure they get paid for their work. Until these title issues are resolved, the closing cannot occur due to the seller not being able to convey “marketable title.”

Here are a few examples of common title issues that can arise during a title search prior to closing.

Florida Statute Chapter 695 Record of Conveyances of Real Estate protects people from schemes and silent deals when it comes to the ownership of real estate. For example, let’s say a contractor is in the process of replacing hardwood floors in the home. If the deal closes, whose responsibility is it to pay the contractor? The seller who hired him or the buyer who is enjoying the new floors? In accordance with Florida’s recording law, the title to the home is not marketable if the contractor filed a notice in the public records that he performed the services to improve the property. The contractor in this case has the superior interest, which would likely prevent the real estate transaction from closing.

You might be surprised how often two individuals claim to have deeds or titles to the same piece of real estate. In Florida, we have what is referred to as the “common source of title” legal doctrine. Here, there is a conflict when two parties both claim title to the real estate from a single source. Under the law, the party that can provide evidence of “better” title from that single source will be given legal title to the property.

When a buyer decides to purchase real estate in Florida, and takes title to that real estate knowing that there are prior claims on that property, then the buyer accepts full responsibility to those claims. For example, there may be a covenant within the deed itself that stipulates that the buyer assumes a specific debt against the land as part of the sale and purchase price. That covenant will legally make the buyer liable for that debt. The buyer does not have to sign any document agreeing to “accept the debt as their own,” by simply paying the purchase price and taking the deed, the buyer has accepted responsibility.

ACS is owned and operated by Ronald J. Conte and David H. Trevett, practicing attorneys who have more than 50 years of combined experience in the fields of law and real estate. We would be honored to work with you on any and all of your real estate closings. To learn more, click here or call us today at 407-270-8855 to see how we can help you.

Source:

http://www.abajournal.com/blawg/About_Florida_Law

How ACS Can Help You

October 20, 2016 by PWSAdmin

Selecting the right firm to help with your specialized real estate needs is crucial to making the best real estate decisions for your organization. When you partner with ACS, you benefit from our years of experience and an unmatched team approach.

Additional benefits our clients see from using our services? They get to handle more real estate closings and focus on new business development.

So what are some reasons partnering with Attorneys’ Closing Services (ACS) is the right option for you:

– Down a paralegal;

– Tired of tedious bookkeeping;

– Worried about falling behind;

– Concerned about an unexpected audit;

– Not up-to-date or unsure of the new TRID Rules?

– Using outdated forms?

– No time to order title & lien searches? Surveys? Estoppel letters?

– No time to coordinate closing documents with lender?

– Losing time in assembling and verifying closing packages?

– No time to produce draft closing statements for clients well in advance of closing?

ACS assists everyone from the sole practitioner to fully staffed offices. We tailor our services to meet each client’s individual needs. Whether your office needs assistance with full or partial closing processing services, ACS is ready to step in at a moment’s notice. We offer full-service processing for commercial and residential attorney title agents and charge a flat fee for our services.

While we handle the processing, you can remain the closing agent and collect the premium. We would be honored to work with you on any and all of your real estate closings. Call us today at 407-270-8855 to see how we can help you.

6 Tips to Ensure a Smooth Home Closing

October 5, 2016 by PWSAdmin

Real estate closings can be marred with complications and setbacks, if not properly planned and executed carefully. Unresolved title issues, such as an unknown lien from a former building contractor, or a serious structural problem revealed in an inspection report can cause weeks or even months of delay.

A common issue that often delays a closing is repair disputes. If you are selling a property, it is a good idea to have a general inspection of your home before putting it on the market. You may find problems that you were otherwise unaware of; you can then either correct them, or consider selling the property in “as is” condition.

Another important tip: Ask a real estate agent, local title company or closing agent to perform a “preliminary title report” for your review, particularly if you suspect there is or might be a possibility of a prior lien, estate or divorce issue that could affect your title to the property.

The buyer will receive a “title commitment” from the title agent as part of the initial title work after the purchase contract is signed, and prior to closing. Most contracts stipulate how many days in advance that the buyer will have the commitment. The title commitment will list prior liens, deed restrictions, easements, or other encumbrances (if any) to the property. Typically, the Seller will have an opportunity to clear the encumbrances. If the Seller cannot provide clear title to the property, the buyer may exercise the option to terminate the contract.

By being involved in the process and reviewing these documents early on, you will have the opportunity to clear up any existing issues, avoiding a possible delay due to title defects.

Here are some additional steps that can help shorten the loan process and ensure the deal closes on time:

Get pre-approved. Getting pre-approved for a loan will help you determine how much you can afford and give you a realistic expectation of the price range for your new home. Buyers who have been pre-approved are generally able to finalize their loan application faster and more efficiently.

Stay organized. Assemble your bank statements, pay stubs, tax returns and other documents as soon as possible, even before you begin looking for a home to buy. Getting these documents together can take time and the better you prepare, the faster your loan will be approved — and processed. If you are unsure of which documents you need, ask your local bank for a “mortgage loan checklist.”

Work with an experienced mortgage lender. Whether you use a mortgage broker, or work directly with a lender, ask what the average time is for processing a loan application and, specifically, how quickly they will be able to complete your mortgage. Try to anticipate potential setbacks, like any credit or employment-related issues.

Make sure that you have the money for closing costs. The lender will require proof that you have sufficient funds for the down payment and closing costs prior to closing. Make sure those funds are readily available. Generally, checks are no longer accepted at the closing table. More often, wire transfer of funds must be confirmed received by the title escrow agent’s trust account – prior to closing – usually the day before – or morning of closing.

Create a timeline for any repairs the seller is obligated to make. Make sure any repairs the seller has agreed to make are completed on time. This should be at least several days before your scheduled closing. Do the final walk-through inspection the day before closing, or sooner, if the seller agrees to it.

Follow up with your lender. Lenders are known for asking for information at the last minute. A day or two before closing, contact your lender and ask if everything will be ready for the closing date. On the day of closing, verify with your closing agent that the loan documents have been received.

Attorneys’ Closing Services (ACS) assists everyone from the sole practitioner to fully staffed offices. We offer full service processing for commercial and residential attorney title agents. While ACS is in the background preparing all of your closing documents, you can handle more closings and develop new business. Whether your office needs assistance with full or partial closing processing services, ACS stands ready to assist you at a moment’s notice. We would be honored to work with you on any and all of your real estate closings. To learn more, visit https://attyclosingservices.com/about-us/.

Source: The Washington Post