by David Chapman, Staff Writer
(One in a series on construction of a home.)
Transferring ownership of a home or finally moving in to one’s brand new home takes more than just a handshake and stroking a check.
Much like preparing a thesis or preparing a presentation, diligent research can mean the difference between success and failure. That’s where title companies and attorneys assist in the homebuilding process.
Both title companies and real estate attorneys can ensure that the property or lot that a potential homebuyer or homebuilder covets is actually available for purchase, an integral step to validate that there are no underlying problems such as actual ownership, construction liens, back property taxes and other issues that can slow or derail a deal.
Joe Danese III has been in the title company business locally since the mid-1980s, second generation, and said such transactions and the need for services is often a trust matter with such large amount of money involved.
“Who do you trust?” Danese, co-owner of Sunshine Title Company, said.
Title companies and attorneys in the real estate field, he said, can help ensure that deals remain valid from the time a lot is purchased to closing.
The title company also can act as an escrow agent at closing to prepare documents and facilitating closing terms to lenders, among other duties.
Danese said for new home construction that used construction-to-permanent loans, ensuring that all parties such as subcontractors and builders are paid before the loan is rolled into a mortgage, with interest from the construction loan, and closed for the lender before the title changes hands.
One misstep he sees is that buyers often don’t realize such loans modifications require additional closing costs at the backend, which can come as a surprise.
“Communication is the key,” he said, regarding working with buyers and lenders through various steps.
Attorney Jeff Marks of Ryan and Marks Attorneys has been practicing for 38 years and serves as the board attorney for the Northeast Florida Association of Realtors.
Like Danese, Marks said that the services of a real estate attorney or title company can help prevent mistakes that result in lost time and money.
Judgments against a seller, back stormwater fees — a newer issue in Northeast Florida — mistakes in legal descriptions and back real estate taxes can all hinder a sale but the services by both service providers can pay off in the long run.
“It’s wise for a buyer to retain services early,” he said, referencing lot purchases and research.
Marks said his clients tend to be lenders but one mistake he sees with buyers is too hasty of action on the land before a closing. An example, he said, would be a buyer demolishing parts of a lot before closing, which could set forth delays of around 30 days.
Patience and abiding by the necessary steps ends up saving time, he said.
Marks also recommends buyers contract their own home inspector and have the home they are buying professionally inspected or, if building a home, having their own inspector visit the site two to three times to ensure work meets prior agreements.
Choosing a title company or attorney for closings or any portion of a real estate transaction is often up to the buyer, but both Danese and Marks said experience and company stability — especially after darker days in real estate — does matter.
And though the mounds of paperwork and countless needed signatures are inevitable when it comes to the closing on a home, the right services and research from the right title company or real estate attorney can protect all of the parties at the table from hidden hazards.