1. What are the biggest mistakes buyers or sellers make during closing, and how can they avoid them?
Chose a local, experienced closing attorney, and a good local Lender. You need real estate service providers who can guide you through the process and are familiar with local conditions and requirements. Get recommendations from your Realtor and friends and family.
2. What should buyers know about escrow and how it protects their transaction?
In MS we do “table funded closings”. Usually all parties coming to the closing table and the document signing is handled by the Closing Attorney and the funds are received and disbursed by the Closing Attorney. It is an “insured closing” in that an approved Title Insurance Co. has issued a “Closing Protection Letter” which guarantees the timely and correct execution and recording of the documents and the proper disbursement of the funds.
3. What role does title insurance play in a closing, and why is it important?
A Title Insurance company play several key roles in the closing process: (1)It issues a Closing Protection Letter, as I previously mentioned, and (2) It assures the Lender that the Borrower/Buyer is receiving good, marketable title and that the Lender’s mortgage will be in a first lien position, properly securing the mortgage loan funds, and (3) It assures the Buyer that he/she are receiving good title which is not subject to unknown liens or undisclosed conditions or restrictions. Title Insurance protects the Buyer and Lender from unknown title defects which might not be revealed by a careful search of the land records.
4. How does a real estate attorney work with lenders, title companies, and realtors to ensure a smooth closing?
In the initial stages of the transaction, a real estate attorney gathers information from the Seller, Buyer and Realtor, and receives instructions from the Lender. The attorney conducts a search and examination of the land records with respect to the Subject Property and communicates the findings to the parties in the form of a Title Insurance Commitment. The Closing Attorney may also take steps to cure any issues or deficiencies revealed by the title search, and works with the parties to secure things such as payoffs, heirship documentation and insurable access. In the final stages, the Closing Attorney will prepare a Closing Disbursement and/or Settlement Statement for review by all parties so that the amount and application of the purchase funds are understood. And, finally, the Closing Attorney schedules and conducts the Closing, recording the documents, and disbursing the purchase funds in accordance with the Settlement Statement and the Lender’ instructions.
5. How do closing costs vary, and what are some unexpected fees buyers should be aware of?
Costs can vary depending on the size and price of the home and the type of estate that is being purchased. Things to look for are Home Owner Association dues, Condominium Association dues and assessments, annual lease payments if a leasehold interest is being purchased, transfer fees, the cost of homeowner’s insurance and the amount of city and county ad valorem real estate taxes.
6. What advice do you have for first-time homebuyers navigating the closing process to avoid last-minute delays?
Again, use a local, experienced Closing Attorney and a well reviewed and recommended local Lender. Local knowledge and expertise is invaluable.
ABOUT YOU:
Tell us about yourself!
I graduated from the University of Mississippi School of Law in 2006 and spent 16 years at Tannehill & Carmean, PLLC, where I focused on real estate law and closed over 15,000 transactions. In 2022, I partnered with Terry Little to establish McKenzie Little, PLLC.
My greatest joy is my family—my two daughters, Nora Gray and Murphey Deems, and my son, Chancellor Colle.
What is your favorite part about working in the Oxford community?
I love working in this community because my favorite places are in one location: the City of Oxford/The Square/Ole Miss campus. I am a huge sports fan and the best programs in the country play here. I love meeting new folks buying property here because I know they will love Oxford as much as I do.
