In follow-up to our last Blog regarding the TILA-RESPA INTEGRATED DISCLOSURE (“TRID”), a new closing statement form called the Closing Disclosure (the “CD”) is coming soon and it will be used for most loan applications taken on new residential mortgages beginning August 1st, 2015. In a continued effort to help educate our readers, we have prepared the following bullet point list which highlights some, but not all, of the key provisions that we believe will be helpful come August 1st, 2015.
- The Closing Agent will no longer have control over the delivery of the CD (at least for now) as the Lender will (in most cases) be preparing and delivering the CD to the Buyer.
- The Buyer’s Agent will not likely receive an advance copy of the CD before it is delivered to the Buyer and the Closing Agent will not be permitted to send a copy of the CD to the Buyer’s Agent due to privacy laws and ALTA Best Practices policies. Going forward, the Buyer’s Agent will now need to request a copy of the CD directly from the Buyer.
- Due to the new minimum 3-day delivery requirement, as referenced in our last Blog on the topic, we recommend multiple walk-throughs in case there are property related issues that affect the value of the property, which could trigger a new 3-day delivery requirement. For example, the first inspection should be 7 to 10 days in advance of the closing and the second inspection on day of closing.
- The Florida Realtors/Florida Bar Joint Committee have been working on revising the Florida Realtors/Florida Bar Contract (“Contract”) in anticipation/preparation of August 1st, 2015. We expect the new Contract changes to be released in the next few weeks and we will, of course, provide our readers with a thorough review and explanation of the changes, so stay tuned!
As always, Berlin Patten Ebling, PLLC will continue to provide updates and helpful tips as the implementation of the new rule approaches in an effort to continue to raise everyone’s awareness of the upcoming changes to the closing process. Should you have any questions regarding the new Closing Disclosure, we urge you to consult with your local real estate attorney.
Berlin Patten Ebling, PLLC
This communication is not intended to establish an attorney client relationship, and to the extent anything contained herein could be construed as legal advice or guidance, you are strongly encouraged to consult with your own attorney before relying upon any information contained herein.
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