Relocation InformationRelocation

 

This page of our website is dedicated to explaining the closing process to those that are relocating from other areas of the country to Connecticut and have never bought a home in Connecticut.  Connecticut  uses attorneys in the same way that other areas of the country use Title or Escrow Companies.  In most situations the Buyer and the Lender in a transaction are represented by the same attorney and the Seller is represented by separate counsel.  Buyers' counsel also acts as title agent, performs a title search and issues title insurance for the closing.  Title insurance companies, such as First American Title Insurance Company, have licensed Connecticut attorneys to issue policies in the same way that they are issued in in states in which title companies do business through direct operations. 

The Rules of Professional Responsibility govern the ethical considerations of attorney representation.  As a result closing attorneys are prohibited from representation of both Buyer and Seller.  This is the primary difference between closing with an escrow company and in a State like Connecticut.  As a Buyer you are represented with respect to issues between you and the Seller.  Your attorney will advocate for your interests if the transaction requires.  Connecticut is also called a table funding state.  This means that the Buyers' side and Sellers' side of the transaction occur simultaneously.  All parties meet, typically at the Buyers' attorney's office and the transaction is consummated at the table together.  Any last minute issues are resolved, the loan documents are executed, the loan is funded, the Seller is paid with title transferred, all at the table.  A typical closing takes about one (1) hour to complete.

Once the closing is complete the Buyers' attorney records all the appropriate documents at the town hall where the property is located.  The Sellers' attorney handles the payoff of any liens with funds received from the Buyers' attorney.  The final title insurance policies are issued by the Buyers' attorney after all documentation is filed at the town clerk's office.  The original loan package is then sent to the Lender.

If you are moving to Connecticut as part of an employment relocation, all non recurring closing costs are paid by your employer through your relocation company.  This means that attorneys working with you communicate with your chosen mortgage company to make sure that you receive credit for all those costs at closing.  This is accomplished by having our paralegal inform your lender of all non recurring closing costs by creating a HUD1 Settlement Statement for review.  A credit is then noted on the HUD1.  The types of costs that are typically covered are attorney fees, title search fees, title insurance for both you and your lender, and overnight mail and wire fees.  Bank charges incurred to obtain the loan are typically not shown on the settlement statement because they are paid directly to your Lender through the relocation company.  Charges not covered include prepaid interest, tax and insurance escrows and any tax adjustment or other reimbursement due the Sellers at closing.  These charges will be due from you at the closing.

Taxes are due in Connecticut for all real property on July 1 of each year.  Payment for the tax bill of July 1 can be paid in two (2) installments, one due by August 1 with the balance due January 1 and considered late if not paid by February 1st.  All taxes are based on a valuation of property that is calculated each October 1st by the town assesor.  For example, the taxes due July 1, 2007 are based on the tax valuation done October 1, 2006.  As a result the tax bill that would be received July 1, 2007 states that is based on the October 1, 2006 Grand List.  This is a valuation date only and does not require you to own the property on the October 1 date to obligate you for payment.  At closing an adjustment is done giving the Sellers credit for any taxes they have paid in advance so that if a closing takes place September 1, 2007 the Buyers will give the Sellers a credit for taxes they have paid for the first half through December 31, 2007. The second half tax bill will then be due January 1, 2008 covering the period through June 30, 2008.  That bill will typically be paid by your mortgage company if you escrow for taxes.

Fuel adjustments are also due at closing and will be based on the amount of oil or propane, if any, remaining at the property on the date of transfer.  Payment will be calculated by multiplying the volume of fuel times the last amount paid by the Seller.  Work with your real estate agent to insure that a correct reading is obtained.

This article is a brief outline fo the process in Connecticut for closings.  Please feel free to contact our office with any additional questions you may have.  We have worked with hundreds of relocation employees over the years and we are sure that you will find our service second to none in helping you work through and understand the closing process in what will be your new home state.

 

 

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