Page 41 - Homeowners Manual - San Luis Obispo County

12 COMMON PROBLEMS THAT COULD AFFECT CLOSINGS

1. Preliminary Report – Review the Preliminary Report upon receipt and address any questions to escrow
immediately upon review. Review the Preliminary Report with your clients PRIOR to the signing.

2. FIRPTA and Withholding – Confirm each seller has a Tax ID number and they are exempt from withholding
(Possible Exemption’s are Exchange or sale of Principal Residence 2 of the last 5 years).

3. Holding Title - Advise the buyers early in the transaction to discuss with their counsel or tax advisor how
they wish to take title to the property and advise escrow as soon as possible of their decision.

4. Loss of Priority – Advise escrow IMMEDIATELY of any construction work done on the property. Escrow may
request further documentation such as Indemnity’s and financials for example.

5. Marital Status - Advise escrow if there is a divorce pending for either buyers or sellers. Monies cannot be
held in escrow. Provide authorization and contact information to escrow for attorneys upon opening escrow.

6. Concurrent Recordings - In order to facilitate a true “Concurrent Recording” all files should be with the
same company.

7. Credits from seller to buyer - ALL credits must be submitted and approved by the lender prior to
submission of loan documents. Credits cannot exceed NRCC’s.

8. Good Funds - Wire Transfers or Cashiers Check ONLY for closing the same or next day.

9. Out of Town Principals - Sending documents out of town for signing could delay the closing. Advise escrow
if your clients will be out of town at closing.

10. Lender Conditions - Provide lender with all requested items prior to signing to allow time for review by the
lender. Allow ample time after receipt of the loan documents for escrow documentation to be prepared.

11. Trust - Proceeds must be wired to an account with the Trust name.

12. LLC, Partnerships - We will need operating agreement/ partnership agreement for Title to review.

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