Closing and Escrow in Pennsylvania
From WFG Wiki
(NOTE: You must confirm pricing shown herein with the most recent TIRBOP rate manual.)
- Who can prepare the Settlement Statement -- No restrictions
- Who can sign the Settlement Statement EO/LTP/Attorney) -- No restrictions
- Who orders hazard insurance -- Customary -
- When is transaction consummated for new Settlement Statement --
- Record before/after disburse -- Record first
- Filed/restricted escrow rates -- If yes, see <<HUD OR SEPARATE SHEET>>
- Record retention requirements --
- Is an attorney involved in the closing -- If yes, explanation attached
- Who can handle loan document signing -- Notary signing permitted but cannot pass thru charge
- Doc Prep Restrictions -- Non-standard docs must be prepared by attorney
- Use Escrow Instructions or not -- No
- Use Estimated Settlement Statement or Final -- Final
- Pass-thru charges -- Limited – Rate Manual Sections 2.1 & 3.4
- Rates Inclusive or not – Inclusive with exceptions
- Section 2.3 of the Pennsylvania Rate Manual allows a separate search and/or examination fee "in specially difficult title matters". Those matters would include "multiple chains of title, land under water, coal, oil, gas or mineral searches, railroad property searches, land in beds of streets, rights-of-way, driveways, foreclosures, tax sales, proceedings under federal bankruptcy or state insolvency related statutes, or … other unusual difficulties or unusual expenditures".
- Pass through Charges permitted for Tax Searches or certifications,water and sewer searches, municipal lien searches, domestic relations and support lien searches, corporate lien searches, corporate good standing certificates, UCC, condo & coop certificates.
- Settlement fee included in title premium. Settlement conducted outside of office or after hours could be considered an unusual expenditure and passed through to customer. Fee must be reasonably related to expenditure.
- Escrow Fees permitted where the closing agent is going to hold funds for an extended period of time after closing. Otherwise part of inclusive premium.
Must be written Escrow Agreement; $25 for first 6 months and minimum charge of $25 for each year beyond initial 6 months.
- No disbursement fee, but wire fees may be passed through at cost.
- Courier/Overnight fees may be charged at cost, but only if a party to the transaction requests overnight delivery
- Cancellation Fee -- minimum $100.00 for cancellation. §3.1 of the Pennsylvania Rate Manual
- Up Charging -- No
- Junk Charges -- No
- Special Settlement Statement Requirements --
- Special Disclosures -- Yes – Rate Manual Section 2.9 & 5.1A
- CPL -- $125, remitted entirely to underwriter
- UPL Issues -- No
- Joinder of non-titled spouse – No, unless pending divorce
- Survey Required -- No
- Tax Year -- Local: Calendar; County: Calendar; School: Fiscal (July 1 through June 30) except for school districts of the first class, which are calendar year.
- Due Dates - County and Local taxes or Philadelphia, Pittsburgh and Scranton City taxes--By April 31 of the taxing year; October 31 of the taxing year for School Districts other than Philadelphia, after which time the taxes are considered delinquent and an automatic lien dating as the first day of the taxing year.
- Lien Date: If not paid, taxes become a lien against the property as of the first day of the taxing year.
- Lien Duration: Once filed, the lien endures until paid or 20 years from the date of filing the claim, if not revived within that time for an additional 20 year period.
Payment Customs
- Owner’s Policy? Purchaser
- Transfer Tax & Recording Fee? Transfer tax costs are split evenly between the parties. Recording fees are split as follows: purchaser for deed; seller for releases/satisfactions
- Survey Charges? Purchaser
- Closing/Settlement Fees? Purchaser; seller for municipal certificates
