Wire fraud is on the rise everywhere and the Federal Reserve is being asked to take a more proactive role in preventing it, especially as it relates to real estate transactions. Two key points are:
1. All parties involved in the real estate transaction need to help educate customers on the dangers of wire fraud and on the ways to protect data and funds. For example, by encouraging consumers to call their known reputable source at a verified number to verify instructions before transmitting funds.
2. Financial institutions on the receiving end should match not only the account number but also the payee’s name when there is a wire transfer. Oftentimes fraudulent wire instructions will say the transfer is to be sent to the attorney’s trust account, for example, but instead it goes to the criminal’s personal account as beneficiary.
If you intend to wire funds to us and suspect anything may be wrong with the instructions, please phone us to verify. If we have sent you instructions and you suddenly receive an email asking you to wire to a different account, phone us to verify. We have only (1) IOLTA account, so we will never change our instructions and ask you to wire to a different account.
1. An offer is accepted by the seller and a contract is signed by both parties, marking the effective date of the contract.
2. At the same time , a deposit is paid to an attorney, broker or escrow agent. The deposit does not become the property of the seller until the closing takes place.
3. The buyer reviews and signs off on any disclosures. These disclosures vary based on property type, but often include things like known flaws with the property, prior improvements or repairs, radon gas and lead paint disclosures.
4. The buyer may elect to perform inspections of the property as agreed upon in the contract and these inspections must be completed by a certain date, which is usually within 10-15 days. Based on the outcome of inspections, buyers have a certain number of days to provide the seller with a report revealing any defects and the buyer may elect to ask the seller for repair work, closing cost credits or a reduction in the sale price due to flaws that were uncovered.
For those borrowing to purchase a home, the mortgage process can be the most stressful part of the transaction. It’s best to start as early as possible and be ready to produce lots of documentation.
The detailed steps that make up closing are:
1. A title search is performed to determine if there are any liens or assessments on the title. Provided that the title is clear, the closing proceeds as planned.
2. A buyer’s attorney or title company begins preparing the paperwork to convey title to the property and schedule the date for closing.
3. A final cash figure for what a buyer needs to bring to the closing in the form of a cashier’s check is calculated. This is based not only on a mortgagees closing costs, but also the proration of property taxes and utilities..
4. A final walk through may be performed the day of or before closing to verify the property is in the same condition it was in when the process began.
5. At the closing table the buyer and seller sign all closing documents. At the conclusion of the closing the representative from the title company or your attorney will record the deed and any other documents with the appropriate registry of deeds.
After all of the documents have been signed and payments exchanged, buyers generally take possession of the keys unless a separate agreement has been reached to allow the seller stay in the property for a period after closing.
Just as soon as one type of wire scam is uncovered it seems like a new one pops up. One of the latest versions involves the perpetrator sending the funding lender wiring instructions to a legitimate account belonging to an innocent, unknowing title company. In verifying the account number, the lender will see that the funds are being wired to a legitimate title entity.
Once the wire has gone through, the scammer contacts the unknowing title company and states that the funds were sent in error. The scammer gives the title company instructions for sending the funds back, but those instructions are fraudulent and the funds will be sent to the scammer. The title company then confirms that it was not entitled to the funds and sends them back using the account information that it has received from the scammer.
The lesson to be learned here is that if you receive wired funds in error, the wire should be rejected. In doing so, the funds will automatically go back to the original sender.
Everyone needs to be vigilant in dealing with wire transfers, verifying information by directly contacting the other parties through secure channels and being skeptical when instructions are changed at the last minute or appear out of the ordinary.
You are buying your first new home here in New Hampshire and you wonder whether the builder has to offer you a warranty on it. Contrary to popular belief, there is no such thing as a “statutory builder’s warranty” on your new stick built home. A stick built home means it was constructed in whole on site. That said, most builders are proud of their product and they do offer a limited one year warranty to the original owner, They are also subject to building in conformance with and to inspections by the local building department where the home is to be located.
In New Hampshire there are other types of housing that are required to come with a warranty. Presite built housing is described as any structure which is wholly or substantially made or assembled in an off-site manufacturing facility. These homes are required to conform with the United States Department of Housing and Urban Development minimum property standards and local building codes.
A new prefabricated or presite built home is required to have a written manufacturer’s warranty to the buyer. The warranty must include the terms that the home is free from any substantial defects in materials or workmanship in the structure, plumbing, heating, and electrical systems and in all appliances and other equipment installed or included in the home. Additionally, it must state that the seller or manufacturer must take appropriate corrective action at the site of the home in the instance of substantial defects in materials or workmanship which become evident within one year from the date of delivery of the home.
Manufactured housing is described as any structure that is transportable in one or more sections, which in the traveling more are 8 feet or more in width and 40 feet or more in length or when erected on site contains 320 square feet, or more of living area. Manufactured housing is built on a permanent chassis and is designed to be used as a dwelling with or without a permanent foundation and to be connected to utilities.
In order to keep a record of and to verify the proper installation of manufactured homes, no manufactured house may be installed in this state until the manufacturer or an installer licensed by the board has obtained a warranty seal from the New Hampshire Installation Standards Board and attached the seal to the manufactured house.
More information on the above warranty requirements can be found in New Hampshire RSA 205-B and 205-D.
A Buyer normally pays for the following:
Recording the new deed
Their share of the tax stamps. Tax stamps in New Hampshire are 1.5% of the purchase price and are split equally between the buyer and seller
The title examination and closing
The owner’s and lender’s title insurance policy
All costs associated with getting a new loan
A Seller normally pays for the following
Their share of the tax stamps
Any commission to the realtor for the sale of the property
To prepare the Purchase and Sales Agreement when no realtor is involved
Recording any lien release documents pertaining to their loan
For the preparation of the new deed conveying the property
Both parties share in the proration of the real estate taxes and there may be other miscellaneous costs associated with the sale. Give us a call at 603-836-5309, if we can help with the sale or purchase of your home!
You have decided to sell your own home without the help of a realtor. What are some of the things you should know.
It’s a good idea to hire a real estate attorney to help with the closing phase. They can prepare the Purchase and Sales Agreement and guide you through the process of selling. There is too much at stake to skip this step and your don’t want a legal issue to end up ruining your sale. An attorney will guide you through the paperwork and make sure that you are in compliance with any state laws. They will work to be sure that your transaction proceeds smoothly.
Here are some of the costs you can expect to encounter when selling a New Hampshire property.
It is the Seller’s responsibility to pay for the preparation of the new deed, recording any releases of present mortgages on the property and your share of the tax stamps.
It is the Buyer’s responsibility to pay for the title search and closing, owner’s and/or lender’s title insurance, the cost of recording the new deed and/or mortgage and their share of the tax stamps.
Tax stamps in New Hampshire are calculated on the sales price of the property and are split equally between the Buyer and the Seller. The current rate is 1.5% per thousand, so on a $100,000 sale the total tax stamps due would be $1500.00.
You will also see the proration of real estate taxes and the tax year in New Hampshire runs from April 1st to March 31st of each year. There may also be other miscellaneous fees and prorations.
Please think of us for your closing needs. Your file will be handled start to finish by one person who can guide you in all aspects of the closing process. Give us a call at 603-836-5309.
- Only the Owner Policy protects the property owner’s interest – the Loan Policy does not;
- The Owner Policy insures the entire value of the property;
- The Owner Policy is a one-time premium and the policy remains in effect and covers the insured for as long as they own the property;
- Your coverage continues even AFTER conveying title by Warranty Deed in the event the new owner files a claim;
- Coverage includes protection for “undetectable” defects such as forgery or fraud;
- An Expanded Owner Policy includes survey coverage without a survey and covers you for things like building permits or zoning issues.
The Owners Policy of Title Insurance can be one of the most important purchases that you make for your new home. Your lender will require you to purchase a Lenders Policy of Title Insurance to cover them. For a minimal amount more, you can protect your interest as well.
Developers, do you have a new subdivision and need Deeds prepared from the new plan. We specialize in metes and bounds descriptions. Give us a call today @ 603-836-5309 or email firstname.lastname@example.org
What You Should Know About the Home Closing Process: An Interview with Kirk Trombley of Trombley & Kfoury
Tell us a little bit about your experience, firm’s history and the areas of law that you practice.
We practice in areas that include general business, real estate, employment law and litigation. We have a significant workers’ compensation defense practice as well.
Our legal team lives and raises families in NH, and believe in supporting local businesses. Our mission is to assist and protect NH residents and business owners in their legal endeavors. We can help you in achieving security for your dreams and business goals, and planning for your future success.
Check out my interview, What You Should Know About the Home Closing Process on New Hampshire Homes, one of the top sites for New Hampshire real estate, including Londonderry, NH real estate. New Hampshire Homes also services New York homes for sale and Pennsylvania real estate.