Category Archives: Closing

Mosaic at Millenia closes more than 100 condos in less than five months

Posted on October 14, 2010 by | 2 Comments

After receiving local, and even international, media coverage for bucking the trend in the current real estate market and securing multiple purchase contracts per week, Orlando’s Mosaic at Millenia followed up that success by closing more than 100 contracts within a five-month period.  Nearly 50 additional homes are currently under contract and waiting to be closed.  Most notable about these sales is that the majority of contracts were submitted by international buyers.

Coldwell Banker NRT Development Advisors, which manages marketing and sales for the property, ignored traditional real estate marketing practices to sell the units and instead tapped its global network of brokers to identify potential investor buyers.  These investors shared the company’s vision of Mosaic at Millenia as an attractive purchase with the opportunity for  a positive cash flow in an enviable area (near local attractions, a high-end mall and more).
“Securing contracts for these tenant-occupied condos was only half of the process,” said Alec String, Coldwell Banker NRT Development Advisor’s Florida vice president of sales.  “Much of the Mosaic at Millenia’s success can be attributed to the sales team’s follow-up process, as they had to oversee each time-intensive step from contract to closing to ensure it was seamless process for the investor buyers.  The team’s deep relationships with the investor representatives and title companies were key.”

The one-, two- and three-bedroom homes at Mosaic at Millenia – which feature private patios/balconies, 9-foot ceilings, crown moldings, chair railings, assigned parking, designer kitchens, valet trash service and alarm systems – are listed from the high $60,000s to the high $90,000s and have historically offered a return of $700 per month in rent.  The community is located within a Greenbelt area, yet only walking distance to Mall at Millenia’s boutique shopping and restaurants, and includes a lighted tennis court, pool, business center, media room, outdoor grilling area, sand volleyball court, billiard room, theater room and playground.

Mosaic at Millenia’s sales manager, Joe Wake, can be reached at 407-493-6736 (office) or 407-493-6736 (cell). The community is located at 3573 Conroy Road, Orlando, FL 32839. www.MosaicAtMillenia.com

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Posted in Closing, Company news, Condo, Investors in Florida

Friday Five: Most and least expensive states for closing costs

Posted on September 17, 2010 by | Leave a comment

By: Brad Horner

I have read quite a bit in the past two weeks about concerns that the new federal rule requiring mortgage lenders to give buyers reliable closing costs estimates is actually costing borrowers more money.  A recent Bankrate.com survey found that, on average, origination and third-party fees on a $200,000 home jumped 37% over last year’s average (from $3,741 to $2,729).

It could be that this year’s estimates are just simply more accurate, or the increase could account for the additional staff  (including auditors, inspection experts and others) that had to be hired to comply with the requirements.

But, closing costs are not the same in every state.  Bankrate.com recently ranked the five cheapest and the five most expensive states when it comes to closing costs, which we are listing in today’s Friday Five.  When reading the lists, keep in mind that the national average closing costs is $3,741.

Five cheapest states:

1.     Arkansas (average closing costs: $3,007)

2.     North Carolina (average closing costs: $3,255)

3.     Iowa (average closing costs: $3,261)

4.     Montana (average closing costs: $3,298)

5.     Wisconsin (average closing costs: $3,303)

Five most expensive states:

1.     New York (average closing costs: $5,263)

2.     Texas (average closing costs: $4,708)

3.     Utah (average closing costs: $4,605)

4.     California (average closing costs: $4,566)

5.     Alaska (average closing costs: $4,327)

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Posted in Closing, Friday Five

Information about banks’ obligations when selling new construction condos

Posted on February 23, 2010 by | Leave a comment

Fannie Mae has predicted that new home sales will rise 26 percent in 2010 compared to an estimated 19 percent drop in sales in 2009.  And many of these buyers have realized that new construction bank owned homes allow them to purchase the latest features in brand new homes, but still get a great deal.

But there has been some confusion surrounding such homes, regarding the bank seller’s obligations according to the Georgia Condominium Act.

That’s why I was so impressed with Seth Weissman’s recent newsletter article about the topic.  Having practiced law for more than 30 years, Seth, partner at Weissman, Nowack, Curry & Wilco, certainly understands the complexities of the Georgia Condominium Act.  Below is his full article.

SELLING BANK-OWNED NEW CONDOMINIUM UNITS
Many brand new, never previously sold bank-owned condominium units are now
on the market for sale. A question which is increasingly being asked about such units is
whether the bank seller must comply with the consumer protection requirements of the
Georgia Condominium Act in selling these units. The answer, as explained below, is an
unequivocal yes!
Georgia law requires that consumers be given certain special protections in
buying condominium units that apply “to the first bona fide sale of each residential
condominium unit for residential occupancy by the buyer, any member of the buyer’s
family, or any employee of the buyer.”1 The consumer protections apply to “any such
sale regardless of whether the seller is the declarant, the association, or any other
person.”2 Therefore, the requirements apply to bank-owned condominium units that
have not been previously sold. The protections generally fall into three categories.
First, the sales contract is required to contain certain disclosures in bold-face
type warning buyers of issues to consider before purchasing the unit. Therefore, a GAR
condominium unit sales agreement cannot be used because it does not contain these
disclosures. More importantly, there is a standard set of disclosures that can be
attached to all contracts to bring them into compliance with the law. The nature of the
disclosures made will change depending on the type of condominium unit being sold.
So, for example, the disclosures in a unit that is part of a condominium conversion are
different from the disclosures for a newly-constructed condominium unit.
Second, buyer must be given a bound copy of a condominium disclosure
package and sign an acknowledgment that they have received the same. For two
reasons, banks should not simply use the condominium disclosure package prepared by
the original developer or “declarant.” The Georgia Condominium Act requires that the
disclosure package be current. The foreclosure will often result in a new declarant and
this must be reflected in the disclosure packet. The passage of time will normally result
in the condominium association’s budget being out of date. Additionally, if the bank
merely hands out the original disclosure package, it runs the risk of being legally liable
for any misstatements, or out of date statements, of the original declarant. Therefore, at
a minimum, the bank should carefully review the condominium disclosure package which
is being used to be certain it is current, accurate and complete.
Third, buyers who are purchasing previously unsold condominium units for
residential occupancy must also be given a seven-day right to rescind or back out of
their condominium sales contracts. The seven-day period does not begin to run until the
buyer has signed a contract and acknowledged in writing the receipt of the condominium
sales contract. The Georgia Condominium Act is silent on whether a buyer who was not
given a current condominium disclosure package can rescind after they have closed on
the purchase of their unit. However, the likelihood is that they can.
It should be emphasized that this section of the Georgia Condominium Act is one
of the few which provides that the “willful violation of any of the requirements of this
Code section by the declarant, the seller, any sales agent or broker, or any other person
shall constitute a misdemeanor.” Since there is a risk of criminal prosecution for failing
to comply with the law, this is definitely an area where an ounce of prevention is worth a
pound of cure.

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Posted in Closing, Condo

What to research before buying in a multi-family community

Posted on December 7, 2009 by | Leave a comment
Buying a home or a condo within a community has become a great option for many buyers. First-time buyers use them as an entryway to property ownership, and busy professionals and retired empty nesters alike enjoy the maintenance-free lifestyle that these communities offer.

But they come with additional considerations beyond what’s included when purchasing a single-family home. Here are the top five items to research in advance:

1. Understand exactly what you are buying when you make an offer, as the word “condo” refers to a legal form of ownership, not a particular type of property. Condo buyers generally own only the interior space of their homes; the exterior structure, land and amenities are usually owned collectively by all of the owners in the complex. Be sure to ask who owns the interior walls? What about the land beneath the home? What maintenance are you responsible for? Do you have your own parking? How many and what kind of vehicles can you park?

2. Research the homeowner’s association—and its board members. Ask for a copy of the association’s financials, including a certified budget and the latest annual reserve study; this can help you determine whether any fee increases are imminent. How is the association organized, and who runs it? How are voting percentages determined, and what would be your percentage?

3. Be aware of all related fees, including monthly association fees any special assessments. How are association fees charged and is there a limit on increases? Check whether utility charges and amenities are included, including pool maintenance. Also, be clear about what maintenance is included in the association fee, and what the condo owner must maintain.

4. Review the complex’s declaration, which helps you determine the monthly condo fee; the bylaws, which include items such as architectural requirements should you want to make any external changes to your condo; plats and plans; and rules and regulations. If the condo association is incorporated, your real estate attorney will want to review the articles of incorporation as well as any proffered disclosure documents. Also, have your attorney check for any “use restrictions” that might prohibit you from renting out the unit, which some associations include to protect financing and refinancing options.

5. Ask about the ratio of units that are rented versus owner-occupied. Your lender will likely require this information.

Condo ownership can be an attractive homeownership option for many buyers. But, it’s important that buyers do their research about the legal and financial implications before making an offer, in order to feel confident when getting to the closing table.

“What to research before buying in a multi-family community” is part of NRT’s podcast series.  To hear this podcast or another podcast focused on home buying, please click here.

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Posted in Bank Owned, Closing, First-time homebuyer, Real Estate

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A move in the right direction: The new disclosure guidelines and how they may impact closing dates

Posted on August 6, 2009 by | Leave a comment

By: Meril Missbach

In an effort to protect consumers, changes were recently made to improve mortgage disclosure, as part of Truth in Lending.  The official name of the new act is, “Mortgage Disclosure Improvement Act” (MDIA), and I think this is a move in the right direction to protect consumers from unscrupulous, predatory lenders.

Here are the main features of this new act:

  • It defines fees that can be collected by a lender before they provide an initial Truth in Lending disclosure.
  • It specifies when the lender must deliver Trust in Lending Disclosures to the borrower.
  • It sets waiting period that must occur before closing can take place.
  • It requires additional disclosures from the lender and additional time between the disclosure and the closing dates if the Annual Percentage Rate quoted by the lender changes by more than 0.125%.

Quite a few actions could cause an APR to change, including a change in the interest rate, loan amount, type of loan, fees charged or loan-to-value ratio. Under Truth in Lending, the lender must disclose up-front what changes have affected an ARP, so borrowers can realize how much money the lender is actually receiving for services related to the loan.

If the ARP does change, the new Trust in Lending disclosure requires a longer time period to pass before the closing of the loan, allowing consumers additional time to analyze any changes and, therefore, the time to make necessary decisions before closing. Below is a simple summary of the new timeline:

  • The Trust in Lending disclosure must be delivered to the borrower 3 business days after the application is received (business days include Saturdays, but not federal holidays).
  • The closing can occur 7 business days after the lender delivers the Trust in Lending disclosure to the borrower.
  • If there is a change of 0.125% or more in the APR, a new disclosure from the lender is required and the closing cannot occur for another 3 business days after the lender delivers the new disclosure.

If buyers must close by a certain date, it’s recommended that they lock in loan rates 5 days before closing to minimize the possibility of last-minute delays.

I see this as a move in the right direction.  These new rules probably won’t delay many transactions, but it will likely protect unsuspecting buyers from an unwelcome surprise when it’s time to close.

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Posted in Closing