Although Indiana license law requires broker attendance at closing, there is an exception that if your client does not attend, then the broker does not have to attend.

Effective July 1, 2009, the House Enrolled Act 1374 was enacted to protect Indiana homeowners who are selling and buying homes or refinancing an existing mortgage on their home.

6 of 10 – Which of the following is a requirement of the Good Funds Act, HEA 1374? Checks for $5000 are prohibited. Aggregated funds for less than $10,000 must be in the form of good funds as defined by the Act.

What is true about a new Indiana broker who leaves a broker company and files an application to be unassigned? The licensee can’t practice real estate until reassigned.

Answer: Generally, no, absent the current broker’s permission. The listing is a contract between the broker and the seller. It is not between the sales agent and the seller. Therefore, it is the broker that retains the listing.

There are three main documents to sign during closing. The second document is the promissory note, a legal agreement to pay the lender, including when you will make your payments and where you will send them. The last is the closing disclosure, an itemized list of your final credits and charges.

We always recommend that you plan to wire extra funds, usually $1,000 – $2,000 on top of the lender’s estimate, just in case there are any changes that happen fewer than three days before closing, which happens frequently. You’ll need to wire transfer these funds in one lump payment the DAY BEFORE CLOSING.

Once documents are signed, they’ll be delivered to your lender for final review. If you’re refinancing to receive cash, know that those funds will not be available for another three days after signing. This is a result of the refinance right of rescission.

Refinance closing documents often include:

• Final version of the closing disclosure statement.
• Your mortgage or deed of trust.
• Promissory note.
• Your right to cancel.

Even if you are pre-approved, your underwriting can still be denied. Your loan is never fully approved until the underwriter confirms that you are able to pay back the loan. Underwriters can deny your loan application for several reasons, from minor to major.

If the loan contract was breached, the lender can be sued if it was the breaching party. The most common remedy pursued by borrowers when a breach of a loan agreement has occurred is the recovery of damages.

If the sale of their house is delayed or unlikely, the seller has the right to terminate the contract. When the closing date was originally determined and the contract signed by both parties, that contract is binding. Early occupancy is another option available to the buyer and seller if a closing date is delayed.

In the February 2020 Realtors Confidence Index survey by the National Association of Realtors, 77% of real estate agents responded that contracts closed on time, and 19% reported delays but eventually closed; 4% of contracts were terminated.

In California, when a buyer doesn’t keep timelines set out in the sale contract – including the closing date – the seller can issue a Notice to Perform to the buyer. If the buyer can’t come through, the seller could cancel and accept the backup offer.

Review the details in the contract to see what the allowable time is for a delay on the part of the seller. Usually a 30-day window is applicable. However, if the house closing delayed by the seller moves beyond the allowable window, the seller could be liable for financial losses incurred by the buyer due to a delay.

Unless you’re paying cash for the home, choose a closing date that’s convenient for you, the seller and your mortgage lender. Most people schedule the closing date for 30-to-45 days after the offer has been accepted – and they do this for good reason.

If the appraised value is less than the purchase price, lenders use that value to determine your LTV. Unless the seller agrees to lower the price, you will have to increase your down payment to get the same mortgage and interest rate. Buyer or seller requests an appraisal rebuttal (see below)

Low home appraisals do not occur often. Fannie Mae says that appraisals come in low less than 8 percent of the time and many of these low appraisals are renegotiated higher after an appeal, Graham says.

The appraiser will most likely know the selling price of a home. Therefore, the appraiser will most likely know the selling price of a home but this is not always the case. There are times that we have appraised properties for private sales where both the buyer and seller have declined to provide this information.