SETTLEMENT

At settlement, your attorney will explain to you all of the settlement papers. These documents include (1) the deed, (2) the note which evidences the loan, (3) the deed of trust/mortgage which secures payment of the loan, (4) the settlement statements by which an accounting is made of the transaction, (5) the truth in lending statement by which the lending institution discloses all of the finance charges, (6) the survey (not always required) of the property showing any building restriction lines, easements or other encumbrances on the property, and (7) any other documents required by the lending institution or by the particular requirements of that settlement. At settlement, the documents will be signed by the proper parties, and several of them will require notarization. The settling of the financial arrangements among the buyers, sellers, lender, sales agents and others will be explained by the settlement attorney and the transaction will be completed.

Following settlement, the attorney is responsible for recording the legal documents among the land records of the county or city in which the property is located and disbursing all of the proceeds of the transaction to the proper parties. In Virginia, the Wet Settlement Act requires, among other things, that all the funds collected at the settlement be disbursed to the proper persons by the settlement attorney within two business days after all the funds are collected and deposited in the settlement attorney's trust account.

It is at settlement that the attorney's fees, recording fees, real estate commissions and all other fees agreed to in either the contract or the finance documents will be paid. It is required that the purchasers bring to settlement the balance of the down payment and required closing costs by certified or cashier's check or wired funds. Purchasers should call the settlement office a few hours before settlement for the exact amount of funds required for settlement.

The attorney's charges in representing the purchasers will be estimated in advance. The expense will be modest in comparison to all the other essential costs of the transaction and in relation to the responsibility of the attorney for examination of title, preparation of documentation and conducting settlement.

See Purchasing Real Estate for more information about purchasing your home.

This Web site provides general information only. Laws develop over time and differ from state to state. This Web site does not provide legal advice about specific legal problems. Let The Law Firm of Evan H. Farr, P.C. advise you about your particular situation.