We Provide Comprehensive Real Estate Settlement Services in Delaware & Maryland

Real estate settlement, commonly called "closing," represents the final phase in purchasing or selling a property. Due to the complexity and magnitude of this transaction, the process entails numerous steps, involves multiple parties, and is governed by federal regulations. Whitehead Law is prepared to help you with the necessary support if you need help navigating the closing process or encounter challenges during your real estate settlement.

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The Real Estate Settlement Process

The real estate settlement process commences well in advance of the closing day. Buyers must conduct a title search, perform a comprehensive home inspection, and execute mortgage documents before signing the property transfer paperwork and facilitating the transfer of funds.

What Is the Real Estate Settlement Procedures Act (RESPA)?

The Real Estate Settlement Procedures Act (RESPA) is a federal law that protects buyers and sellers during the closing process. It establishes specific rules for lenders, mortgage brokers, and loan servicers, promotes transparency, and restricts the use of escrow accounts.

Most individuals secure mortgages to purchase their homes, so mortgage brokers wield significant influence over real estate settlements. The Real Estate Settlement Procedures Act (RESPA) clearly outlines that home loan servicers cannot require buyers or sellers to work with specific title insurance companies, impose excessively high fees, or misrepresent transaction costs. Furthermore, all parties involved in a real estate settlement must adhere to strict regulations that prohibit kickbacks or payments for conducting business with one another.

All parties involved in your real estate settlement are expected to prioritize the interests of the buyers and/or sellers. The individuals engaged in the closing process are tasked with facilitating this complex transaction rather than exploiting borrowers. Should you suspect a lender has violated the Real Estate Settlement Procedures Act (RESPA), contact the real estate attorney at Whitehead Law without delay.

Real Estate Closing with Whitehead Law

Three days before closing day, the buyers will have an opportunity to see the closing disclosure form, which names the price of the transaction and the parties involved. After receiving this document, buyers can inspect the property to ensure it is ready for purchase. The previous owners should be moved out, and the home should be in the agreed-upon condition. Usually, buyers have their real estate attorneys review the closing disclosure form before moving forward. In Delaware, licensed attorneys MUST be involved in real estate settlements. Other parties involved in the real estate settlement process include title agents, real estate agents, escrow agents, and loan officers.

Engaging in the purchase or sale of a residence entails more than merely transferring funds from the buyer to the seller. The intricacies of this process, coupled with the involvement of multiple parties, present a considerable risk for errors and opportunities for exploitation. Consequently, the states of Delaware and Maryland require attorneys to oversee these transactions, ensuring compliance with legal obligations and safeguarding the interests of all parties involved.