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Settlement
for Sellers
We have supplied the information below to assist you in understanding
what is expected of a Seller at Settlement. This information
is generally how the settlement process works, however, we
encourage you to speak directly with your settlement company
to receive specifics on how they hanndle settlements in their
office.
Question: What are the main responsabilities
of a settlement company from a Seller's perspective?
Answer : From a Sellers's perspective the settlement company
will:
- Examine both land and court records to ensure that clear
title is given by you under the terms of the Contract of
Sale;
- Identify any liens of record against property, which the
settlement company will pay off out of your proceeds;
- Prepare settlement documents; including the deed and settlement
sheet (HUD-1);
- Dispurse all funds shown on the settlement sheet (HUD-1)
as set forth under the terms of the Contract of Sale; and
- Record all applicable documents to properly effectuate
transfer of the title from you to your purchaser or buyer.
Question: What information do I need to give
to the settlement company prior to settlement?
Answer: Most settlement companies have a Seller Checklist
in one form or another. They will typically provide this to
you or ask you the information over the phone so they can
prepare documentation. Items you should expect to see on this
checklist include:
- Name(s) of the Owner(s) of the Property
- 1st Trust Lender & Account Number (this is the company
that holds your primary mortgage).
- 2nd Trust Lender & Account Number (this is the company
that holds your secondary mortgage) when applicable.
- Line of Credit/Equity Line Lender & Account Number
when applicable.
- Approximate amount of the two (2) most recent water
bills.
- Homeowner/Condo Association Fees and Contact Information
and other relevant information.
- Social Security Numbers of all Property Owners.
- Power of Attorney documentation when applicable.
Question: I have a FHA loan, is there anything
special I need to do to sell my house?
Answer: Certain loan pay-offs, like FHA loans, require the
seller to advise their lender in advance of settlement that
the loan will be paid in full. If you have such a loan, confirm
with your real estate agent that you or your agent have provided
your lender proper and timely notice to avoid any possible
penalty.
Question: How am I supposed to know what I am
reading at settlement?
Answer: At settlement the Settlement Attorney will review
with you all the documents, provide a brief explanation of
the forms and have you sign these documents and forms.
Question: How long will settlement take?
Answer: Closings generally last about one (1) hour.
Question: What will I need to bring with me to
settlement?
Answer: You will need to bring a photo identification card
from a U.S. or State Government Agency (like a Driver's License,
Passport or Governmental ID Card). Failure to produce proper
identification can delay settlement.
Question: What shoul I do the day before settlement?
Answer: You should call your loan officer or loan processor
the day before settlement to confirm whether you need to bring
any documents to closing, such as a homeowner's insurance
policy or original termite report.
Question: What should I do the day of settlement?
Answer: You will need to notify the following utility companies
of transfer of the accounts to your purchaser. The transfer
should be made on the day of settlement (or the date you vacate
the property if a rent back is involved). The water company
is the only utility that the settlement company pays directly
out of your proceeds. For your information, here are some
of the phone numbers to area utility companies:
| Utility Company |
Telephone Number |
| BG&E |
410.685.0123 |
| DC Water Dept. |
202.354.3600 |
| Frederick Gas Co. |
301.662.2151 |
| Frederick Water (City) |
301.694.1421 |
| Frederick Water (County) |
301.694.1126 |
| PEPCO |
202.833.7500 |
| Allegheny Power |
800.255.3443 |
| Rockville Water (City) |
301.424.7450 |
| Washington Gas |
800.752.7520 |
| WSSC |
301.206.4001 |
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