In: Operations Management
What minimum documentation does the purchaser need to provide at the real estate closing? And what is a prepayment fee or premium, and how is it different from a late charge?
The minimum documents required to provide at the time of real estate closing are:
1. Deed - This will transfer the ownership of the property and consist of the name of the parties involved in the process of buying and selling.
2. Mortgage - if there is any legal mortgage related to the property then the seller should also provide a promissory note which will state that the loan against the property need to be paid.
3. Certificate from the Municipality - This will consist a statement from the municipality that the property is legal and is complying with all the legal requirements.
4. Insurance - Insurance documents of the property needs to be transferred to the new owner.
5. Closing Statement - Any adjustment that is required for the same with the adjustment in price due to various factors.
Prepayment fee is a penalty that is put on loan payment before the actual due date of the payment and this is different from late charge because in late charge the penalty is set on payments that is done after the due date.