Suggestions for Preparing for and Attending a Real Estate Closing
for the State System of Higher Education
(as revised 11/14/00)
A. Contact title insurance company who provided Commitment.
1. Review draft settlement sheet.
2. Arrange to "run funds through" title company as closing agent.
B. Contact seller's attorney.
1. Review draft of deed (name of grantee; general warranty unless otherwise agreed; check description from title insurance commitment and/or prior deed or current survey).
2. Advise regarding tax peculiarities (seller pays all transfer tax; no pro-ration of county, local municipality and school district taxes, etc.).
C. Confirm receipt of required certifications (radon, asbestos, water potability, environmental, termite, etc.) with university personnel.
1. If particular items are to be waived, confirm acceptability with Vice Chancellor's Office; advise university regarding legal implications of such waiver.
D. Do not schedule closing until Agreement of Sale has been approved by the Office of Attorney General ("OAG") (and, if applicable, the Office of General Counsel ("OGC")).
E. Arrange for university to have check in proper amount at closing, made payable to title insurance company or other closing agent.
II. At closing:
A. Confirm that final deed and settlement sheet are what was previously agreed upon in draft form.
B. Review and explain settlement sheet items to client (University Vice President, etc.).
C. Obtain a "marked-up" title insurance commitment or binder showing exceptions to be deleted, and signed or initialed by the authorized insurance representative.
D. Arrange for title insurance company or recorder to return original copy of recorded deed and final copy of title insurance policy directly to you — not to the university.
E. After closing and upon receipt of the items in section (D), submit original deed to OAG for review and approval. After approval, send original deed and title insurance policy to the Historical and Museum Commission (State Archives), copying university on the transmittal (forms are available).
F. After closing, promptly notify (or have the university notify) the County Tax Assessment office that a tax immune, state government entity has taken title to the property and that it should be removed from the tax rolls.