Transaction Coordination

Question 1

When someone signs as an LLC, what 2 things must you make sure they do? that they sign their name and what they’re role in the company is

Answer 1

They sign their name and what their role in the company is

Question 2

How many papers is needed for LLC?

Answer 2

5

Question 3

What papers are needed for LLC

Answer 3

Articles of Organization
Operating Agreement
Resolutions that exist
EIN
Certificate of good standing

Question 4

How many things are included in a Parent LLC

Answer 4

5

Question 5

What is included in the parent LLC docs

Answer 5

Who are the members
How is it managed

Question 6

When making a change to an addendum

Answer 6

Do it at the bottom not middle of contract

Question 7

What does opening a file for subto need

Answer 7

● Opening Escrow
● Welcome email to all parties
● Document gathering
● Opening EMD
● Request & Review Title Report & Lien Search
● Identify if title is clear, and if not, determining solutions for exceptions
● Seller Authorization for Mortgage

Question 8

How many steps are involved in opening a subto coordination

Answer 8

7

Question 9

What happens in the middle of a subto TC

Answer 9

● Working through title exceptions
● Submitting Seller Auth & Requesting Payoff and/or Reinstatement
● Additional Document Gathering (HOA resale certificates, solar account
documents, declaration of insurance)
● Getting end-buyer information if client is assigning deal
● Prepare LPOA & post-closing docs once end-buyer is confirmed
● servicing company opening package to give to escrow agent/paralegal

Question 10

What happens in the closing process in a subto TC

Answer 10

● Send opening-package for servicing to escrow agent/paralegal, if they agree to complete
● Request & Review HUD/settlement statement
● Find out closing locations and disbursement preference for all parties
● Acquirewire/check information for escrow agent for all parties
● Arrange mobile notaries
● Schedule closing date

Question 11

How many steps are involved in closing process

Answer 11

6

Question 12

What are the steps in post closing for a subto TC

Answer 12

● Confirm closing has been finalized
● Confirm servicing packet was sent to servicing company
● Request copies of all executed closing documents
● Request copy of recorded documents
● Post-close mail to all parties

Question 13

Whats the timeline for preliminary title report

Answer 13

anywhere for 24 hours to several weeks

Question 14

When does EMD need to be deposited

Answer 14

needs to be deposited within timeframes set out in contract, if any timelines are set at
all

Question 15

Whats the timeline for payoffs

Answer 15

anywhere from 24-72 hours (typically need to come from mortgage customer service
department)

Question 16

Whats the timeline for reinstatements

Answer 16

anywhere from 24-72 hours (typically need to come from loss mitigation
department)

Question 17

When does the end buyer EMD

Answer 17

needs to be deposited within timeframes set out in contract, if any timelines are
set at all

Question 18

Whats the timeline for LPOA + Closing documents

Answer 18

LPOA + Post-Closing Documents: can prepare and send as soon as we have confirmation title
report is clear and end-buyer is confirmed

Question 19

When is the HUD/Settlement Statement due

Answer 19

request as soon as we know title is clear and we are good to close

Question 20

Whats the timeline for signing locations

Answer 20

as soon as we know we are good to close

Question 21

Whats the process for opening escrow

Answer 21

● Send new contract & LLC docs to title or attorney office
• requesting title report and wire instructions for earnest money deposit (EMD)
○ if there is no EMD, no wiring instructions needed
● Initial/Opening EMD: receive wiring instructions email to the client. F/U with
the client/person depositing initial EMD every day until they say they’ve deposited.
•Once they confirm they have, request a receipt for the EMD from title/attorney

Question 22

Whats the process for Preliminary title report

Answer 22

● f/u with title/attorney every 2-3 days requesting updates on ETA
● Once received, ask escrow agent if the report is “clear” (AKA “marketable”)
○ If not clear, discuss title exceptions with the escrow agent & document
○ you’ll need to communicate issues to your client first to game plan

Question 23

What steps are involved in a seller authorization

Answer 23

● tip: request a mortgage statement from your client or the seller
● tip: prepare seller authorization at the same time as the contract if getting
contract executed by seller yourself.
○ send to seller via docusign
○ f/u with the Seller daily until signed.
○ Once signed, send to the lender via email and/or fax

Question 24

What are the steps to get payoff/reinstatement

Answer 24

● Fax and/or email the seller authorization to the lender
● monitor for file from lender
● Once received, send to escrow agent & client
● Tip: payoffs come from customer services & reinstatements typically come
from the loss mitigation department. Most of the time you have to read the fine print of the mortgage statement to find the loss mitigation department information if the property is in foreclosure
○ If the property is in foreclosure, you may have to request the foreclosure trustee’s information from the lender so that you can request a payoff and reinstatement from the trustee

Question 25

What are the steps to get LPOA

Answer 25

● once prelim is confirmed clear & end-buyer is confirmed, prepare LPOA and post-closing documents
● send LPOA to escrow agent to add to the seller’s closing documents
● send 5 post-closing documents to the seller and buyer via docusign
○ tip: have a quick call beforehand with the seller & buyer to explain the documents
○ tip: remind the escrow agent about the LPOA prior to closing
○ tip: it’s super clean to get all the post-closing documents executed at
closing so its all done at once; HOWEVER, escrow agents tend to forget the docs when you do it that way, so it is a risk

Question 26

What are the steps to get End Buyer EMD

Answer 26

● once assignment is executed, and/or preliminary title report is confirmed clear, request wiring instructions for the End-Buyer
○ tip: some assignment agreements have time limits so be very mindful of this
● send wiring instructions to the end-buyer