for sale by owner package - peak title co · for sale by owner cost information peak title agency,...

FOR SALE BY OWNER PACKAGE

PEAK TITLE AGENCY, CO.

39300 W. Twelve Miles Rd.|Ste. 120| Farmington Hills, MI 48331 P: 734.294.0300 |F: 734.661.6065

Email: [email protected]

P: 734.294.0300

F: 734.661.6065

39300 W. Twelve Mile Rd.| Suite 120|Farmington Hills, MI 48331|www.peaktitleco.com

BOTH PARTIES TO SIGN AND RETURN TO TITLE COMPANY PRIOR TO SCHEDULING A CLOSING

FOR SALE BY OWNER COST INFORMATION

Peak Title Agency, Co. Fees

Document Preparation Fee: $300.00 — Seller Charge

Owner's Premium: Based on Sales Price — Seller Charge

Note: $240.00 non-refundable deposit required at time of title application

Delivery/Wire Fee: $20.00 for overnight delivery or wire for each payoff or any

Instrument requiring confirmed delivery — Seller Charge

Mortgage Premium: Based on Mortgage Amount — Buyer Charge

Closing Fee: Mortgage Transaction: $520.00

Cash/Land Contract: $325.00

Buyer Charge unless VA mortgage then seller must pay

County Recording Fee: Wayne County: $15.00 for the first page + $3.00 each additional

All Other Counties: $14.00 for the first page + $3.00 each additional

Plus tax certification fees where appropriate

Note: Recording Fees apply to both buyer and seller — the amount will vary

based on the documents necessary to complete the transaction. Michigan State and County Transfer Tax: (Seller Charge)

-State Transfer Tax: $7.50 per thousand + $3.75 for every $500.00 or fraction thereof -County Transfer Tax: $1.10 per thousand + $0.55 for every $500.00 or fraction thereof

PEAK TITLE AGENCY , CO WILL REQUIRE THE FILE TO BE COMPLETE PRIOR TO SCHEDULING A

CLOSING, AND WILL REQUIRE NOT LESS THAN (5) FIVE BUSINESS DAYS ADVANCE NOTICE PRIOR

TO SCHEDULING A CLOSING. CLOSING TIMES ARE SUBJECT TO AVAILABLILITY.

Upon receiving an offer, the seller(s) and purchaser(s) must provide the following to Peak Title Agency, Co.:

1. Purchase Agreement (fully executed by seller(s) and purchaser(s))

2. Signed Payoff Authorization on any outstanding mortgage(s)/equity line(s) secured by the property.

3. Completed For Sale By Owner Information Sheet.

4. Original Executed Escrow Agreement if Peak Title Agency, Co. is holding Earnest Money Deposit

I understand and accept the terms of this agreement.

Seller Signature: _______________________________________________________ Date:________________

Purchaser Signature: __________________________________________________ Date: ________________

P: 734.294.0300

F: 734.661.6065


For Sale By Owner Order Form

In order to better serve you, please fill this out completely.

PROPERTY ADDRESS:

Number Street City/Town/Village County

LEGAL DESCRIPTION: (If known)

SELLER(S):

Last Name First Middle Marital Status Social Security #

Mailing Address (If different from property address) Phone

Current Mortgage Company Phone Loan #

Home Equity Line of Credit (if applicable) Phone Loan #

Attorney Name (if applicable) Attorney Phone Attorney Fax

Last Name First Middle Marital Status Social Security #

Mailing Address (If different from property address) Phone

Attorney Name (if applicable) Attorney Phone Attorney Fax

NEW MORTGAGE: Company Name Mortgage Amount

Company Address Phone

Loan Office or Contact Person Fax

Sale Price: Anticipated Closing Date: _________________________________________________________________________________

Deposit Amount: ___________________________________ Held By: PEAK TITLE AGENCY, CO.

Home Warranty Co: _________________________________________ Premium Amount: __________________ Paid By: _______________

Are there Mandatory Homeowner / Condominium Association dues: Yes ___________ OR No _________

Association / Management Company Name Phone Number Contact Name

Attachments: ( ) Purchase Agreement ( ) Mortgage Payoff Authorization Letter(s)

( ) Prior Title Insurance Policy ( ) Other ____________________________________________________

Additional Instructions

BUYER(S):

P: 734.294.0300

F: 734.661.6065


REQUEST TO CLOSE ACCOUNT

Date:

RE: Acct. # Name

Address

Dear Sir or Madam:

Enclosed please find a check in the amount of $ _______________

Please apply this to the above names account and CLOSE THE

ACCOUNT to any future advances and release any liens that may

be held on the above named address. Thank you.

Sincerely,

P: 734.294.0300

F: 734.661.6065


CLOSING COSTS

Sellers May Typically Pay:

All costs required and necessary to clear title.

Owners title insurance.

County Revenue Stamps (based on $1.10 per thousand on the sales price).

State Revenue Stamps (based on $7.50 per thousand on the sales price).

Tax Proration (if prorated in arrears).

Payoff of current mortgages, or any other liens on the property (including

but not limited to delinquent taxes, judgments, tax liens, etc.).

Closing fee on VA loans.

Final utility bills.

Payoff of special assessments, unless they are being assumed by the buyer.

Purchasers May Typically Pay:

Appraisal Fee

Credit Report

Flood Certification

Prepaid Interest

Document Preparation

Escrow for Home Owners Insurance

Escrow for Property Taxes

Mortgage Title Insurance

Recording of Deed

Recording of Mortgage

Mortgage Report or Survey

Tax/HOA Prorations (if prorated in advance)

There could also be various closing costs required by the lender. The lender of your

choice should provide you with a Good Faith Estimate of closing costs.

Peak Title Agency, Co. charges a closing fee, which can be paid by the Seller or the Buyer or

can be split between the parties. PLEASE NOTE on a VA loan, the Seller must pay the closing

fee.

THIS IS ONLY A GUIDELINE; YOUR FINAL BOTTOM LINE WILL BE DETERMINED

BY THE DATE OF CLOSING AND THE COST YOU AGREED TO PAY.

The information contained herein is for informational purposes only. This information

should not be relied upon for legal advice.

P: 734.294.0300

F: 734.661.6065


BUYER'S SETTLEMENT STATEMENT

The Buyer's Settlement Statement is an outline of the credits and charges from a Buyer's perspective.

Buyer's Charges

1. Sale Price

The Buyer is charged for the purchase price according to the Purchase Agreement and any

addendums.

2. Tax/HOA Prorations

The Buyer is charged for the HOA, Summer, and Winter tax prorations. These prorations are

computed based on the terms of the Purchase Agreement. Typically, prorations are done on a

tax "due-date" basis. On a due-date basis, taxes are paid for the year in advance. For

example, when summer taxes are due in July, the tax bill is actually for July 1st through

June 30th of the following year. The Buyer is charged for the taxes for the portion of the

upcoming and/or current year that he/she will be the owner of the home.

Buyer's Credits

1. Earnest Money Deposit

The Buyer is credited for the amount of the deposit previously paid.

2. First Loan Credit

The Buyer is credited the amount of the new mortgage.

WATER/SEWER ESCROW AGREEMENT

This agreement describes the terms and conditions under which the water/sewer escrow will be held

and disbursed.

OCCUPANCY ESCROW AGREEMENT

This agreement describes the terms and conditions under which the occupancy escrow funds will be

held and disbursed.

SAMPLE PURCHASE AGREEMENT

This Purchase Agreement is a binding contract between the Buyer and Seller. It provides a blueprint

of the transaction with regard to the major terms and provisions of the sale.

The Seller and Buyer must work together to arrive the terms of the Purchase Agreement.

P: 734.294.0300

F: 734.661.6065


These terms often include: purchase price

type of sale (sale with new mortgage, cash sale, land contract, etc.)

earnest money deposit occupancy terms

personal property included with the sale (washer, dryer, etc.)

P: 734.294.0300

F: 734.661.6065


SELLER'S SETTLEMENT STATEMENT

The Seller's Settlement Statement is an outline of the credits and charges from a Seller's perspective.

Sale Price

The Seller is given a credit for the purchase price according to the Purchase Agreement and any addendums.

1. HOA/Tax Prorations

The Seller is credited for the HOA, summer and winter tax prorations. These are computed based on the terms of

the Purchase Agreement. Typically, prorations are done on a tax "due-date" basis. On a due-date basis, taxes are

paid for the year in advance. For example, when summer taxes are due in July, the tax bill is actually for July 1st

through June 30th of the following year. The Seller is credited the taxes for the portion of the upcoming and/or

current year that he/she is no longer the owner of the home.

Seller's Charges

1. Water/Sewer Escrow

In order to account for the Seller's final unpaid water bill, we will hold a minimum of $300.00 from the Seller's

proceeds for payment.

2. Occupancy Escrow

If the Purchase Agreement allows, the Buyer is entitled to rent the property to the Seller from the date of

closing until the Seller vacates the property. The amount held for occupancy escrow is typically 1/30th of

the Buyer's mortgage payment plus taxes and insurance, per day of occupancy. If there is no mortgage, it is

a mutually agreed upon price.

3. Earnest Money Deposit

The Seller is charged for the amount of the earnest money deposit they have previously received from the

buyer if that deposit is held in the Seller's personal account. Peak Title Agency, Co. may also hold the deposit and

will transfer the funds to the closing table.

4. Owner's Policy

This charge to the Seller is for payment of the Title Insurance Policy which provides the Buyer with insured

proof of ownership. The price of the policy is determined by the sale price. The Seller may be entitled to a

discount of the cost of the new policy, if a copy of the title policy they received when they bought the home is

provided to the title company. Title insurance rates are regulated by the State of Michigan.

5. County and State Transfer Taxes

Commonly referred to as "stamps" or "revenue stamps", the transfer tax is calculated on the sale price of the home.

6. First Mortgage Payoff

This charge is to payoff the existing mortgage held by the Seller.

P: 734.294.0300

F: 734.661.6065


7. Overnight Delivery Fee / Wire

Peak Title Agency, Co. wires funds or uses overnight delivery services to transport mortgage payoffs, in order to insure timely delivery and to track the date of receipt in case of a discrepancy with the mortgage company.

8. Document Preparation Fee

Peak Title Agency, Co. charges a fee for preparing the various statements shown in this sample package.

P: 734.294.0300

F: 734.661.6065


SALE WITH A MORTGAGE

1. Execute a Purchase Agreement between buyer and seller. All fees and details of the

transaction should be addressed in your Purchase Agreement. Execute the Seller's

Disclosure and the Lead-Based Paint Disclosure.

2. Order title insurance from Peak Title Agency, Co.. When ordering, provide a copy of the signed Purchase Agreement with all addendums, any prior title insurance or an original

abstract (this will reduce your charges and quicken the order), and $240.00 to start the order

(this fee will be applied as a credit to your final title insurance bill or to the work fee if the file

is cancelled).

3. The buyer should call and schedule an appointment with the lender of their choice.

Take the originals of the signed documents from paragraph 1 to your lender and notify

the lender that the seller has placed the title insurance order with Peak Title Agency,

Co..

4. The lender will set the closing for a time and date agreed to by all parties. Some

lenders use title companies to close their loans, and some do not.

5. If Peak Title Agency, Co. closes your transaction, we will need a copy of the Purchase

Agreement and all addendums, lien payoff letters and authorization, and documentation

preparation assistance authorization when you schedule your closing. We will finalize all

payoffs (mortgages, taxes, and other liens), prepare closing statements, direct you in clearing

title, and calculate the tax prorations or other prorations according to the Purchase Agreement.

We will call all parties to discuss closing figures and upon request, will provide copies of the

closing documents for review.

6. The buyer's funds must be certified (certified check or money order) and made payable to

Peak Title Agency, Co.. The buyer must also obtain homeowner's insurance prior to the

closing and provide at the closing, to the lender, a copy of the homeowner's insurance binder

insuring the lender along with a one-year paid receipt.

7. At the closing, Peak Title Agency, Co. will disburse all of the sale proceeds, lien

payoffs, and deliver the appropriate documents to the Register of Deeds for recording.

8. After the closing, the buyer will receive the final policy of title insurance and the recorded

deed.

P: 734.294.0300

F: 734.661.6065


DISCLOSURE

Regarding Real Property Tax Prorating Options

During the course of your real estate transaction you will participate in negotiations leading to the creation of a formal Agreement to Purchase/Sell Real Estate. One of the many important provisions within this legally binding contract that must be negotiated between the parties is the paragraph that sets forth the parties agreement concerning who will

be responsible at closing for what portion of the current real property taxes. This decision assigning responsibility for current taxes is generally referred to as "tax proration". The language of the tax proration provision may have a significant impact upon the amounts due at closing. Over the past years various theories have been developed as to whether the annual tax bill is for the prior year's taxes or the following year's taxes. The purpose of this disclosure is limited to providing notice of this situation. There is no right or wrong option. Like all provisions within the contract,

the tax proration paragraph should reflect the agreement reached between the purchaser and the seller. The three most

common formulas used in Monroe County are:

The proration in advance formula assumes that the taxes are paid in advance. (This option tends to favor the seller and may result in property tax proration payment from the purchaser to the seller at closing.)

The proration in arrears formula assumes that the taxes are paid in arrears. (This option tends to favor the

purchaser and may result in a property tax proration payment from the seller to the purchaser at closing.)

There will be no property tax proration.

This formula makes no assumption and merely indicates that the purchaser will be

responsible for the next and all subsequent property tax bills on the subject property. (This option could

favor the purchaser or seller.)

This disclosure is not intended for and should not be used as a guideline for the negotiation of the real estate property tax proration paragraph in your Agreement to Purchase/Sell Real Estate. In negotiating any real estate contract you should seek the services of a qualified real estate professional.

The undersigned agrees that they have read and received a copy of this disclosure and will proceed with great care in

the negotiation of the real estate property tax proration paragraph of their contract. They also acknowledge their right to utilize legal counsel.

Date:

Purchaser: Seller:

Purchaser: Seller:

P: 734.294.0300

F: 734.661.6065


Lead Paint Disclosure (Sale) Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards

Lead Warning Statement

Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is

notified that such property may present exposure to lead from lead-based paint that my place young children at risk of

developing lead poisoning. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in

residential real property is required to provide the buyer with any information on lead-based paint hazards from risk

assessments or inspections in the seller's possession and notify the buyer of any known lead-based paint hazards. A risk

assessment or inspection for possible lead-based paint hazards is recommended prior to purchase.

Seller's Disclosure (initial)

(A) The residential dwelling located on the property was built (choose one below and put initials by choice):

in 1978 or thereafter (if you initial this line please disregard (B) and (C) below and sign and date where

indicated on the bottom of this form).

prior to 1978.

(B) Presence of lead-based paint and/or lead-based paint hazards (choose one below and put initial by choice):

known lead-based paint and/or lead-based paint hazards are present in the housing (explain on a separate

sheet of paper, sign it and attach it to this form).

Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing.

(C) Records and reports available to Seller (choose one below and initial by choice):

Seller has provided the purchaser with all available records and reports pertaining to lead-based paint and/or

lead-based paint hazards in the housing (list documents on a separate sheet of paper, sign it and attach it to this

form).

Seller has no reports or records pertaining to lead based paint and/or lead-based paint hazards in the

housing.

Purchaser's Acknowledgment (initial)

(D) Purchaser has received copies of all information listed and on any attached sheets above.

(E) Purchaser the pamphlet Protect Your Family from Lead in Your Home can be found online at

http://www.hud.gov/offices/lead/outreach/leadpame.pdf

If you have trouble with the online file please contact First American Title.

(F) Purchaser must choose either (I) or (II) below and put Purchaser's initials next to the choice made:

http://www.hud.gov/offices/lead/outreach/leadpame.pdf

P: 734.294.0300

F: 734.661.6065


(I) The obligations of Purchaser under the purchase and sale agreement are contingent upon Purchaser

obtaining a risk assessment or inspection of the property for the presence of lead-based paint and/or

lead-based paint hazards at Purchaser's expense prior to midnight of the tenth calendar-day after

Purchaser executes this addendum. This contingency will automatically terminate at that time unless,

prior to that time Purchaser (or Purchaser's agent) delivers to Seller (or Seller's agent) a written consent

addendum listing the specific existing lead-based deficiencies and corrections needed, together with a

copy of the inspection and/or risk assessment report. Seller may, at Seller's option, within 5 days after

receipt of Purchaser's proposed addendum, elect in writing to provide Purchaser with a credit for the

costs of correcting the condition(s) at the time of settlement. If Seller does not elect to provide

Purchaser with a credit, or if Seller makes a counter-offer Purchaser shall have 5 days to respond to the

counter-offer or remove this contingency and take the property in "as is" condition or the purchase and

sale agreement shall become void. Purchaser may remove this contingency at any time by written notice

to Seller.

_____ (II) Purchaser waives the opportunity to conduct a risk assessment or inspection of the property

for the presence of lead-based paint and/or lead-based paint hazards.

Agent's Acknowledgment (initial)

(G) ____ Agent has informed the seller of the seller's obligations under 42 U.S.C. 4582 (d) and is aware of

his/her responsibility to ensure compliance.

Certification of Accuracy

The following parties have reviewed the information above and on any attached sheets and certify, to the best of their

knowledge, that the information provided by the signatory is true and accurate.

Seller Date Seller Date

Purchaser Date Purchaser Date

P: 734.294.0300

F: 734.661.6065


JUST • A • REMINDER

It is the Seller's responsibility to obtain a FINAL water bill or current actual reading at the time of vacating or

immediately after closing.

Notify the post office and all correspondents of your change of address. The post office can provide a change of

address kit for you.

We recommend that the new owners change the locks on all outside doors.

You may wish to change the address on your driver's license by visiting the Secretary of State's office; at the same

time, don't forget to obtain a new voter registration card.

It is the purchaser's responsibility to inform the municipality of a change in ownership in order to establish a

homestead tax basis. You may be asked to bring a copy of the Warranty Deed to the Treasurer's office, so it's a good

idea to call before you go.

P: 734.294.0300

F: 734.661.6065


ESCROW AGREEMENT

(Earnest Money Deposit)

File Number:

Date:

Property Address:

Depo s i t ed wi th P eak T i t l e Agency, Co . , a s Escro wee , i s a check in the amo unt o f

$ _____________________________ (the "Funds"), representing the earnest money deposit of Purchaser under a purchase agreement

with the seller covering the referenced property. This Escrow Agreement shall be null and void if the check presented to Escrowee

hereunder is not honored upon deposit.

The funds deposited hereunder are to be held by Escrowee in escrow for delivery under the following terms and conditions:

1) upon written direction of Seller and Purchaser, the escrowed funds shall be applied toward the purchase price of the property at

closing, or;

2) upon written direction of Seller and Purchaser, the escrowed funds shall be disbursed by Escrowee as so directed, and;

3) unless written instructions to disburse are furnished to Escrowee on or before _______________________________ then Escrowee

shall, at its option, continue to hold such Deposit until written instructions to disburse are received, or it shall initiate an interpleader

action in a court of competent jurisdiction and deposit all of the escrowed funds for determination by the court of the proper disposition

of such escrowed funds. Upon any such deposit with the court, this escrow shall terminate, and;

4) in the event of any dispute regarding this escrow, Escrowee may, at its option, continue to hold such funds until joint written

instructions directing the disbursement of the escrowed funds are furnished to Escrowee by Seller and Purchaser, or it may initiate an

interpleader action in a court of competent jurisdiction and submit the deposit for determination by the court of a proper disposition.

Upon submission of the deposit to such court, this escrow shall terminate and the Escrowee shall be relieved of any further liability

hereunder.

Upon making such delivery, and performance of any other services included above, Escrowee will thereupon be released and

acquitted from any further liability concerning the deposit, it being expressly understood that such liability in any event is limited by

the terms and conditions set forth herein. By acceptance of this deposit, Escrowee is in no way guaranteeing the sufficiency of the

deposit, and Escrowee shall incur no liability for the failure of any financial institution used by it as an escrow depository. Escrowee

shall not be responsible for the payment of any interest on the escrowed funds unless directions to invest are accepted in writing by

Escrowee.

In the event of an interpleader action or other litigation affecting its duties relating to this deposit, Seller and Purchase r jointly

and severally agree to reimburse Escrowee for any reasonable expenses incurred, including attorney fees.

In the event that any funds held in escrow remain unclaimed beyond six (6) months after the termination date recited in this

Agreement, Escrowee shall be entitled to a reasonable administrative fee to be deducted from the escrow proceeds.

Any change in the terms and conditions hereof may be made only in writing signed by all parties or their duly authorized

representatives.

For its services as herein set forth Escrowee is to be paid the sum of $ ____________________ by Purchaser.

Seller(s): Purchaser(s):

Peak Title Agency, Co.

By: ________________________________________

Authorized Signature

39300 W. TWELVE MILE ROAD │ STE. 120│FARMINGTON HILLS MI 48335

O: 734-294-0300 │ F: 734-661-6065

www.peaktitleco.com

PAYOFF REQUEST

TO: ________________________________________

NAME OF BANK

ACCOUNT #: ___________________________________

MORTGAGORS: ________________________________ ______________________________

Print Name SS #

________________________________ ______________________________

Print Name SS #

PROPERTY ADDRESS: ________________________________

________________________________

PAYOFF CALCULATED THROUGH: _____________

I ___________________________________________________ give permission to Peak Title Agency

Co., to order and receive our mortgage payoff on our behalf.

PLEASE CALCULATE A PAYOFF ON OUR LOAN INDICATED ABOVE AND FAX A COPY TO

PEAK TITLE AGENCY AT 734-661-6065. IF YOU HAVE ANY QUESTIONS OR NEED FURTHER

INFORMATION, PLEASE CONTACT THE CLOSING DEPARTMENT (734-294-0300).

THANK YOU FOR YOUR IMMEDIATE ATTENTION AND COOPERATION.

BY:

MORTGAGOR DATE

BY:

MORTGAGOR DATE

39300 W. TWELVE MILE ROAD │ STE. 120│FARMINGTON HILLS MI 48335

O: 734-294-0300 │ F: 734-661-6065

www.peaktitleco.com

HOA INFORMATION

Seller: _______________________________________________________________________

Property Address: ______________________________________________________________

Please provide the following information to Peak Title at your earliest convenience:

1. Name of Association: ____________________________________________________

2. Contact name at association: _______________________________________________

3. Phone: ______________________________ Fax: _____________________________

4. Mailing Address for payment of dues: ________________________________________

________________________________________________________________________

5. Amount of dues $______________ Monthly _____ Quarterly_____ Annually_____

6. Are the association dues paid in advance? YES NO

7. Amount of penalty, if not paid by __________________: $______________

8. Dues cover from (Date) __________________ to (Date) _________________________

9. Is water included in the association dues? YES / NO

10. Has a Lien been placed on the property? YES / NO

11. Dues are current (Please check one): Paid in full: Still owing:

12. Current amount owing: $_____________ which is due by: ______________________

13. Seller’s Email Address: ______________________ Phone _____________________

for sale by owner package - peak title co · for sale by owner cost information peak title agency,...

Documents