REAL ESTATE 101:

1. REAL ESTATE 101: William “Chip” Mackrides MACKRIDES ASSOCIATES and The Closing David J. Scaggs THE GRANGER FIRM

2. Preparation for Closing The Seller’s Disclosure (68 Pa.C.S.A. § 7301) BUYER: Make sure that your client reads it and asks questions where it raises concerns and issues. Check to make sure there is nothing left blank. SELLER: Make sure that it is provided...over-disclose! The Seller shall be liable in the amount of actual damages suffered by the Buyer as a result of a violation of this Law as long as the action is commenced within two years after the date of final settlement.

3. Preparation for Closing The Agreement of Sale : Review it! • Know it upside down and sideways: be familiar with the terms, special clauses, addendums, inspection clauses and endorsements. • Make sure that all preconditions and contingencies have been met (ie. Inspection related work, Use & Occupancy inspections & Certifications). • Follow the Money: Check the deposits, consideration & mortgage commitment...make sure it is all there. • Check all of the time limits...they count!

4. Preparation for Closing • Make sure that someone has ordered the loan payoff information and the tax certifications. • If an Estate is involved, do you need an Order of Court to sell the Property, do beneficiaries have to be at closing to sign. • Title searches: review abstract of Title, check Judgments and conditions. Obtain copies of and read the exceptions listed on the commitment! • Mortgage Commitment: review conditions and requirements, make sure that Mortgagee will have documents ready for closing.

5. Make sure your Buyer client has Homeowners insurance and a paid premium receipt. Who has the Deposit Money, interest? Notice of settlement: Make sure you know where and when Closing will take place, advise your Clients accordingly and tell them to bring identification and a checkbook, as well as a Cashier's check, unexpired warranties and keys, etc... Preparation for Closing

6. Condominiums: 68 Pa. C.S.§3407Certificate requirements (Agreement of Sale is voidable by thepurchaser until the latter of Five (5) days after the certificate has been provided or until closing) Planned Community: 68 Pa. C.S.§5407Certificate requirements (Agreement of Sale is voidable by the purchaser until the latter of Five (5) days after the certificate has been provided or until closing) Cooperatives: 68 Pa. C.S.§4409Certificate requirements (Agreement of Sale is voidable by the purchaser until the latter of Five (5) days after the certificate has been provided or until closing) Preparation for Closing

7. Have a Plan with your Buyer or Seller in the event that there are issues uncovered during the inspection. Be available prior to Closing to speak with your client; have contact information for the opposing counsel or realtor. Be aware of Seller’s and Buyer’s respective responsibilities (ie. Fixture issues, Undisclosed defects or new damage vs. Normal wear & tear). Escrow Agreements: have an Escrow Agt. with you or know how to prepare one, provide for fees, indemnification and interpleader ("An equitable action brought by an escrow holder to have a court determine the ownership rights of adverse claimants to the money or property that is held by that escrow holder"). Presettlement Inspection

8. Have there been any new Assessments to the property, any casualty losses or payments, condemnations/takings, adverse possession or presciptive easement claims, mechanics liens, lis pendens, lawsuits, bankruptcies? Occupancy of Property prior to or after closing: inspect, indemnification/hold harmless Agreement. Contract contingencies: ie. conditions of house or property, existence of Tenants, water, sewer or environmental tests, subdivision, zoning, financing... Survey: not customarily required, but could be issues of property lines or infringements. Closing/Settlement

9. Mortgage Documents: review them. Mortgage requirements and commitment: can your Buyer satisfy them/ are there issues involving Seller assist that might not be acceptable to Mortgagee. Mortgage satisfactions, make sure they are received and recorded (your client would be wise to pay you to follow up on this to make sure it is actually done). Closing/Settlement

10. Title: Who is insured? the Mortgagee?, the owner?, both? make sure all conditions for closing are removed and there are no unacceptable exceptions have the title abstract "marked up" for the Buyer to remove title exceptions and mark the deed and mortgage as “insured”. Examine the HUD-1(make sure it has all relevant information about the Title Company that you'll need in the event of a claim years down the road) check the figures, software may not be faulty but input could check the charges, don't be afraid to ask, compare to estimate of closing costs if prepared by title agent make sure that Payoff of seller’s mortgage(s) is evidenced Closing/Settlement

11. Check the Endorsements, who and what are they for?, are they necessary/required? see Tirbop's (Title Insurance Rating Bureau of PA) website for a complete listing of Pennsylvania Approved Endorsements - http://www.patitleratingbureau.org/about-tirbop/tirbop-rate- manual Deed: check the property description, the names (how are they taking title? ie. Joint tenancy, Tenants by the Entirety, Tenancy in Common), the recital, and the warranty of title...Does it tell the right story! Closing/Settlement

12. IN CLOSING: Be careful out there! Real Estate 101 THANK YOU FOR YOUR ATTENTION