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Congratulations! You're ready to close on your new home! Knowing what to expect at the closing or settlement of most peoples largest investment, their home, in a new city will help ease the process. That's why we've provided this information on local customs for your convenience.
Evidence of Title - Abstracts
Your title insurance owner's policy will describe the property and outline any recorded limitations on your ownership such as an individual or entity's rights to the property, a lien or a claim to the property. It will also set forth the title insurance company's responsibilities should any claim covered by the policy term arise.
In the sale and purchase of residential real estate, in the greater Toledo Area, the seller typically provides the buyer with written evidence of title known as "Guaranteed Certificate of Title" and/or Title Insurance. This is instead of abstracts, which are almost never used, and other forms of evidence of title which may be popular in other areas of the country. Purchaser's attorney usually asks for a "Preliminary Letter" which is usually paid for by the purchaser and which is a preview and synopsis of what the Guaranteed Certificate of Title is going to say. This is a labor saving device for purchaser's attorney and is generally believed to be worth the small additional fee.
Real Estate Tax Prorations
The general custom in this area is to pro-rate the real estate taxes on a billing date basis. Billing dates on December 20th and June 20th; although the bills are actually mailed shortly after these dates. Generally speaking, the purchaser will be credited for the amount of taxes that have accrued from the December 20th or June 20th date and will then pay the next tax bill in its entirety when it arrives. Sometimes the credit is for an additional six months billing period when the public record reflects that the seller has not had an opportunity to pay the taxes for the preceding complete billing period.
However, in Perrysburg Township the general custom is to use the lien-date basis of tax proration, which in effect means that the purchase is credited with additional six months taxes. The City of Perrysburg has no clear custom and both methods are used. In all cases, be sure that your purchase/sales contract is specific about which tax proration method will be used at closing.
Occupancy
Occupancy is a matter of contract between buyer and seller. Generally speaking, the custom is for the seller to retain thirty (30) days rent free from the closing.
Attorneys
We advise both purchasers and sellers to have an attorney attend the real estate closing with them. Although most transactions are problem free, the exceptions can create enormous problems for the legally naïve.
Money for Closing
There are almost no exceptions to the rule that you must have a bank check or certified check for the purpose of closing your real estate transaction.
Internal Revenue Tax Impact
Almost every real estate transaction has income tax ramifications now or in the future. Be sure to save your closing statement and show it to your tax consultant or whoever does your annual federal return. There are significant tax advantages to handling residential real estate transactions within certain IRS guidelines. Describe your tax situation to a competent Realtor and ask if you should seek advice from a tax professional as to the timing and amounts of purchases or sales, the deductibility of expenses, the change of basis, etc.
Expenses
Following is a list of expenses that may occur at the time of closing.
Meet Our Team
First Capital strives to achieve a high level of service. We want you to know that we're in this together. Our team takes great pride in our work and is committed to being proactive in delivering solutions to our customers.
We have an entrepreneurial spirit, a forward-looking vision and everything we do is meant to promote and encourage successful completion of all your real estate transactions.
Sincerely,
Dick Mays
Attorney/President
Phone: 419-255-5800
Fax: 419-255-5805
For an estimate on our fees for service, complete the contact us form below.
Evidence of Title - Abstracts
Your title insurance owner's policy will describe the property and outline any recorded limitations on your ownership such as an individual or entity's rights to the property, a lien or a claim to the property. It will also set forth the title insurance company's responsibilities should any claim covered by the policy term arise.
In the sale and purchase of residential real estate, in the greater Toledo Area, the seller typically provides the buyer with written evidence of title known as "Guaranteed Certificate of Title" and/or Title Insurance. This is instead of abstracts, which are almost never used, and other forms of evidence of title which may be popular in other areas of the country. Purchaser's attorney usually asks for a "Preliminary Letter" which is usually paid for by the purchaser and which is a preview and synopsis of what the Guaranteed Certificate of Title is going to say. This is a labor saving device for purchaser's attorney and is generally believed to be worth the small additional fee.
Real Estate Tax Prorations
The general custom in this area is to pro-rate the real estate taxes on a billing date basis. Billing dates on December 20th and June 20th; although the bills are actually mailed shortly after these dates. Generally speaking, the purchaser will be credited for the amount of taxes that have accrued from the December 20th or June 20th date and will then pay the next tax bill in its entirety when it arrives. Sometimes the credit is for an additional six months billing period when the public record reflects that the seller has not had an opportunity to pay the taxes for the preceding complete billing period.
However, in Perrysburg Township the general custom is to use the lien-date basis of tax proration, which in effect means that the purchase is credited with additional six months taxes. The City of Perrysburg has no clear custom and both methods are used. In all cases, be sure that your purchase/sales contract is specific about which tax proration method will be used at closing.
Occupancy
Occupancy is a matter of contract between buyer and seller. Generally speaking, the custom is for the seller to retain thirty (30) days rent free from the closing.
Attorneys
We advise both purchasers and sellers to have an attorney attend the real estate closing with them. Although most transactions are problem free, the exceptions can create enormous problems for the legally naïve.
Money for Closing
There are almost no exceptions to the rule that you must have a bank check or certified check for the purpose of closing your real estate transaction.
Internal Revenue Tax Impact
Almost every real estate transaction has income tax ramifications now or in the future. Be sure to save your closing statement and show it to your tax consultant or whoever does your annual federal return. There are significant tax advantages to handling residential real estate transactions within certain IRS guidelines. Describe your tax situation to a competent Realtor and ask if you should seek advice from a tax professional as to the timing and amounts of purchases or sales, the deductibility of expenses, the change of basis, etc.
Expenses
Following is a list of expenses that may occur at the time of closing.
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Seller
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Purchaser
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Meet Our Team
First Capital strives to achieve a high level of service. We want you to know that we're in this together. Our team takes great pride in our work and is committed to being proactive in delivering solutions to our customers.
We have an entrepreneurial spirit, a forward-looking vision and everything we do is meant to promote and encourage successful completion of all your real estate transactions.
Sincerely,
Dick Mays
Attorney/President
Phone: 419-255-5800
Fax: 419-255-5805
For an estimate on our fees for service, complete the contact us form below.
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