Neel And Robinson Keller Williams Realty | Keller Williams Realty Atlanta: Search Atlanta Homes For Sale

Posts Tagged ‘neel and robinson keller williams realty’

How To Protect Your Cash Home Buyers: Keller Williams Realty Atlanta Real Estate Legal Tip

Monday, August 9th, 2010

Keller Williams Realty Atlanta – Peachtree Road

Real Estate Legal Tip

Presented By:

How To Protect Your Cash Home Buyers

There are special considerations and issues for a cash buyer:

1.     Proof of funds – do not provide confidential bank statements or brokerage account statements; instead have the buyer’s personal banker or financial adviser write a letter to confirm the buyer’s ability to pay for the property.
2.     Title insurance – always recommended for a cash buyer, but remember that there will not be a simultaneous issue discount, because there is no loan or loan policy. The premium will be about $3.60-$4.00 per thousand of the sales price.
3.     Hazard insurance – make sure that the coverage begins the day of closing. If the property is vacant or will have a tenant, the buyer should disclose this to the insurance agent to make sure that the proper coverage is provided.
4.     Flood insurance – since there is no lender to order a flood certification, the buyer should inquire and investigate whether flood insurance is required. A new survey is a good idea.
5.     Inspections – the buyer’s home inspector is especially important, because there is no lender’s appraisal or inspector to provide a second opinion on quality, condition, or value.
6.     How to take title – sometimes a buyer has credit issues or income tax liens, making it difficult for the buyer to get a mortgage. Make sure the buyer knows that if title goes into his/her individual name, any existing liens or judgments will attach to the new property; the buyer may want to set up a trust or LLC.
7.     Estimating closing costs – since there are no lender fees, make sure that the seller’s allowance for closing costs is completely used or otherwise credited back to the buyer. Repair credits, unused closing cost credits, and rebates are acceptable on a cash purchase, plus the allowance can be used for a survey, home warranty, HOA dues, condo dues, even tax prorations, as long as this is spelled out in the Special Stipulations.

Presented by Leigh Clack, Attorney
Neel & Robinson Attorneys at Law, LLC
22 Lenox Pointe, Atlanta, GA 30324
lenox@neelandrobinson.com 404-705-3690 fax 404-705-3697