Things to Note with Out of Area Closings

If your client has executed a Purchase and Sale agreement that is not our Berkshire form, they may be subject to an out of area closing.  A few things to remember in this case:  First, much of the documentation delivery may include overnight delivery and processing costs that they client should be prepared to pay.  Second, some items need to be handled in advance.  As Mike Shepard pointed out, “The common practice has been for the listing broker to bring the smoke detector certificate to the closing.  To my knowledge, this is acceptable practice to the local banks.  I recently came across a closing where the buyer’s out of town lender would not clear the file to close and transmit the closing package to the buyer’s attorney without having the smoke detector certificate in the bank file preclosing.  This requirement is not something that either lawyer or either broker knew in advance, but we were fortunate that the listing agent was able to get it to the buyer’s lawyer quickly and get it right out to the bank to avoid a closing delay.”  Finally, we have out of area closings take place where the electronic deed recording was rejected for missing information… and it wasn’t until the REALTOR checked the next day to discover that the deed transfer was never recorded.  The REALTOR had to make subsequent calls to ensure her client had rightful possession and ownership, when her client was assured it had already taken place (and moved in) the day before. Please remember to stay alert, read agreements and have open conversations with your broker and your clients when working with documents that you are not familiar with on a routine basis.