Difference between revisions of "DE Operations Summary"
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==Licensed Entity:== | ==Licensed Entity:== | ||
| + | |||
*See Attached HUD Sample for Additional Information | *See Attached HUD Sample for Additional Information | ||
[[file:delaware_HUD-1.pdf] | [[file:delaware_HUD-1.pdf] | ||
==Banking Information== | ==Banking Information== | ||
| − | *Bank account <<INSERT ACCOUNT #/ROUTING #/BANK NAME>> | + | *Bank account -- <<INSERT ACCOUNT #/ROUTING #/BANK NAME>> |
| − | *Checks stale dated after | + | *Checks stale dated after -- ___ days of issuance |
| − | *Good Funds Law $10,000 de minimus | + | *Good Funds Law -- $10,000 de minimus |
| − | *Disbursements Requirements <<INSERT IF WFG REQUIRES CD?>> | + | *Disbursements Requirements -- <<INSERT IF WFG REQUIRES CD?>> |
| − | *Special Bank Requirements (IOLTA/IOTA/OTHER or account specific to that state’s funds) Delaware attorney must participate in the disbursement - IOLTA | + | *Special Bank Requirements (IOLTA/IOTA/OTHER or account specific to that state’s funds) -- Delaware attorney must participate in the disbursement - IOLTA |
==Escrow/Settlement== | ==Escrow/Settlement== | ||
| − | *Who can prepare the HUD Not restricted | + | *Who can prepare the HUD -- Not restricted |
| − | *Who can sign the HUD (EO/LTP/Attorney) Not restricted | + | *Who can sign the HUD (EO/LTP/Attorney) -- Not restricted |
| − | *Who orders hazard insurance Customary - | + | *Who orders hazard insurance -- Customary - |
| − | *When is transaction consummated for new HUDS | + | *When is transaction consummated for new HUDS -- |
| − | *Record before/after disburse Disburse then record | + | *Record before/after disburse -- Disburse then record |
| − | *Filed/restricted escrow rates No | + | *Filed/restricted escrow rates -- No |
| − | *Record retention requirements 3 years title; 5 years escrow | + | *Record retention requirements -- 3 years title; 5 years escrow |
| − | *Is an attorney involved in the closing Yes | + | *Is an attorney involved in the closing -- Yes |
| − | *Who can handle loan document signing DE Attorney | + | *Who can handle loan document signing -- DE Attorney |
| − | *Doc Prep Restrictions Doc Prep is UPL | + | *Doc Prep Restrictions --Doc Prep is UPL. A licensed Delaware attorney must conduct the settlement and must make the disbursements. The attorney should also examine the title. |
| − | *Use Escrow Instructions or not No | + | *Use Escrow Instructions or not -- No |
| − | *Use Estimated HUD or Final Final | + | *Use Estimated HUD or Final -- Final |
| − | *Pass-thru charges Not restricted | + | *Pass-thru charges -- Not restricted |
| − | *Rates Inclusive or not Not inclusive | + | *Rates Inclusive or not -- Not inclusive |
| − | *Up Charging | + | *Up Charging -- Not restricted |
| − | *Junk Charges Not restricted | + | *Junk Charges -- Not restricted. Customary to charge search & exam fees |
| − | *Special HUD Requirements None | + | *Special HUD Requirements -- None |
| − | *Special Disclosures None | + | *Special Disclosures -- None |
| − | *CPL | + | *CPL -- |
| − | *UPL Issues | + | *UPL Issues -- Doc Prep is UPL. A licensed Delaware attorney must conduct settlement and disburse. The attorney should also examine the title. |
| − | *Joinder of non-titled spouse NO | + | *Joinder of non-titled spouse -- NO |
| − | *Survey Required | + | *Survey Required -- |
**Owners – yes; | **Owners – yes; | ||
**Loan policy – no | **Loan policy – no | ||
==Audits== | ==Audits== | ||
| − | *Required No | + | *Required -- No |
==Recording Process== | ==Recording Process== | ||
| − | *E-recording | + | *E-recording -- |
| − | *Record before disbursement Disburse then record | + | *Record before disbursement -- Disburse then record |
| − | *Special recording procedure Deed requires affidavit Gain/Value | + | *Special recording procedure -- Deed requires affidavit Gain/Value |
Kent & Sussex County – special requirements | Kent & Sussex County – special requirements | ||
==Recording/Document Requirements== | ==Recording/Document Requirements== | ||
| − | *Marital Status Stated Required | + | *Marital Status Stated -- Required |
| − | *Transfer Tax Yes | + | *Transfer Tax – Yes, 3% statewide |
| − | *Mortgage Tax No | + | *Mortgage Tax -- No |
| − | *Address for grantor/grantee/property Return to address required | + | *Address for grantor/grantee/property -- Return to address required |
| − | *Witnesses | + | *Witnesses -- Not required |
| − | *Names typed/printed Yes | + | *Names typed/printed -- Yes |
| − | *Prepared by/return to Name and address of preparer required | + | *Prepared by/return to -- Name and address of preparer required |
| − | *Notary Stamp/requirements | + | *Notary Stamp/requirements -- |
| − | *Parcel or tax index number Required 1st page | + | *Parcel or tax index number -- Required 1st page |
| − | *Recitation of Consideration | + | *Recitation of Consideration -- |
| − | *Derivation Clause Yes | + | *Derivation Clause -- Yes |
| − | *Corporate Signatures/Attestation | + | *Corporate Signatures/Attestation -- |
| − | *Ink Color/Font | + | *Ink Color/Font -- |
| − | *Legal Description | + | *Legal Description -- PIN required |
| − | *Margins 2.5” 1st page, 1” all others (county variations) | + | *Margins -- 2.5” 1st page, 1” all others (county variations) |
| − | *Other Special Recording: Deed requires affidavit Gain/Value | + | *Other Special Recording: -- Deed requires affidavit Gain/Value |
Kent & Sussex County special requirements | Kent & Sussex County special requirements | ||
==Document Types== | ==Document Types== | ||
| − | *Conveyance | + | *Conveyance -- |
| − | *Security Instrument Mortgage | + | *Security Instrument -- Mortgage |
| − | *Release | + | *Release -- attorney who has paid off mortgage has the authority to release and satisfy [http://codes.lp.findlaw.com/decode/25/21/2120 25 Del. C. §2120] |
==Tenancies== | ==Tenancies== | ||
| − | *Tenants in Common | + | *Tenants in Common -- |
| − | *Joint Tenants | + | *Joint Tenants -- |
| − | *Tenancy by Entireties | + | *Tenancy by Entireties -- |
| − | *Community Property | + | *Community Property -- |
| − | *Homestead | + | *Homestead -- |
| − | *Joinder of Non-titled Spouse | + | *Joinder of Non-titled Spouse -- |
==Taxes== | ==Taxes== | ||
| − | *Taxes Levied | + | *Taxes Levied -- Varies by county as does fiscal year – presenting a proration issue. |
| − | *Taxes due 9/30 | + | **New Castle County – Tax Year is July 1- June 30 |
| − | *Delinquent | + | **Kent County – Tax Year is June 1 – May 31 |
| + | **Sussex County – Tax Year is July 1-June 30 | ||
| + | |||
| + | *Taxes due -- 9/30 | ||
| + | *Delinquent – Oct. 1 | ||
==Commitment/Policy Special Requirements== | ==Commitment/Policy Special Requirements== | ||
| − | *Who can sign Commitment/Policy Licensed Producer | + | *Who can sign Commitment/Policy -- Licensed Producer. Do not have to be an attorney to get licensed and there are no residency requirements. |
| − | *Other Attorney must certify title/examine | + | *Other -- Attorney must certify title/examine |
| + | |||
| + | ==Payment Customs== | ||
| + | *Purchaser pays owners policy | ||
| + | *Transfer Tax is split equally and Recording Fee is paid by the purchaser for deed and mortgage and seller for satisfaction of mortgage | ||
| + | *Survey charges paid by Buyer | ||
| + | *Buyer pays Closing/settlement charges unless seller is represented by counsel, then Seller pays their own attorney fees. | ||
==Post Closing Requirements== | ==Post Closing Requirements== | ||
*Recon follow up required | *Recon follow up required | ||
| + | |||
| + | ==Withholding Requirements== | ||
| + | *[http://www.revenue.delaware.gov/services/current_bt/5403.pdf Form 5403] must accompany every deed to be recorded in Delaware. And is subject to Real Estate Tax at the rate of six and 95/100 percent (6.95%) of the value of the gain on the property sold as represented by such document, which tax shall be payable at the time of making, execution, delivery, acceptance or presenting of such document for recording. tax is to be paid by the Transferor(s)/Seller(s). | ||
| + | *Tax not limited to non-residents | ||
Revision as of 15:11, 14 December 2014
Contents
Licensed Entity:
- See Attached HUD Sample for Additional Information
[[file:delaware_HUD-1.pdf]
Banking Information
- Bank account -- <<INSERT ACCOUNT #/ROUTING #/BANK NAME>>
- Checks stale dated after -- ___ days of issuance
- Good Funds Law -- $10,000 de minimus
- Disbursements Requirements -- <<INSERT IF WFG REQUIRES CD?>>
- Special Bank Requirements (IOLTA/IOTA/OTHER or account specific to that state’s funds) -- Delaware attorney must participate in the disbursement - IOLTA
Escrow/Settlement
- Who can prepare the HUD -- Not restricted
- Who can sign the HUD (EO/LTP/Attorney) -- Not restricted
- Who orders hazard insurance -- Customary -
- When is transaction consummated for new HUDS --
- Record before/after disburse -- Disburse then record
- Filed/restricted escrow rates -- No
- Record retention requirements -- 3 years title; 5 years escrow
- Is an attorney involved in the closing -- Yes
- Who can handle loan document signing -- DE Attorney
- Doc Prep Restrictions --Doc Prep is UPL. A licensed Delaware attorney must conduct the settlement and must make the disbursements. The attorney should also examine the title.
- Use Escrow Instructions or not -- No
- Use Estimated HUD or Final -- Final
- Pass-thru charges -- Not restricted
- Rates Inclusive or not -- Not inclusive
- Up Charging -- Not restricted
- Junk Charges -- Not restricted. Customary to charge search & exam fees
- Special HUD Requirements -- None
- Special Disclosures -- None
- CPL --
- UPL Issues -- Doc Prep is UPL. A licensed Delaware attorney must conduct settlement and disburse. The attorney should also examine the title.
- Joinder of non-titled spouse -- NO
- Survey Required --
- Owners – yes;
- Loan policy – no
Audits
- Required -- No
Recording Process
- E-recording --
- Record before disbursement -- Disburse then record
- Special recording procedure -- Deed requires affidavit Gain/Value
Kent & Sussex County – special requirements
Recording/Document Requirements
- Marital Status Stated -- Required
- Transfer Tax – Yes, 3% statewide
- Mortgage Tax -- No
- Address for grantor/grantee/property -- Return to address required
- Witnesses -- Not required
- Names typed/printed -- Yes
- Prepared by/return to -- Name and address of preparer required
- Notary Stamp/requirements --
- Parcel or tax index number -- Required 1st page
- Recitation of Consideration --
- Derivation Clause -- Yes
- Corporate Signatures/Attestation --
- Ink Color/Font --
- Legal Description -- PIN required
- Margins -- 2.5” 1st page, 1” all others (county variations)
- Other Special Recording: -- Deed requires affidavit Gain/Value
Kent & Sussex County special requirements
Document Types
- Conveyance --
- Security Instrument -- Mortgage
- Release -- attorney who has paid off mortgage has the authority to release and satisfy 25 Del. C. §2120
Tenancies
- Tenants in Common --
- Joint Tenants --
- Tenancy by Entireties --
- Community Property --
- Homestead --
- Joinder of Non-titled Spouse --
Taxes
- Taxes Levied -- Varies by county as does fiscal year – presenting a proration issue.
- New Castle County – Tax Year is July 1- June 30
- Kent County – Tax Year is June 1 – May 31
- Sussex County – Tax Year is July 1-June 30
- Taxes due -- 9/30
- Delinquent – Oct. 1
Commitment/Policy Special Requirements
- Who can sign Commitment/Policy -- Licensed Producer. Do not have to be an attorney to get licensed and there are no residency requirements.
- Other -- Attorney must certify title/examine
Payment Customs
- Purchaser pays owners policy
- Transfer Tax is split equally and Recording Fee is paid by the purchaser for deed and mortgage and seller for satisfaction of mortgage
- Survey charges paid by Buyer
- Buyer pays Closing/settlement charges unless seller is represented by counsel, then Seller pays their own attorney fees.
Post Closing Requirements
- Recon follow up required
Withholding Requirements
- Form 5403 must accompany every deed to be recorded in Delaware. And is subject to Real Estate Tax at the rate of six and 95/100 percent (6.95%) of the value of the gain on the property sold as represented by such document, which tax shall be payable at the time of making, execution, delivery, acceptance or presenting of such document for recording. tax is to be paid by the Transferor(s)/Seller(s).
- Tax not limited to non-residents
