Frequent Seller Questions

Here are some of the questions we hear most often from sellers about the settlement process.

What does MG Title do?
As a title and escrow company, MG Title has many responsibilities. Our processors and attorneys review the sales contract; confirm property information and ownership; work with lenders to make sure all requirements are met; notify all parties and assist in resolving any title issues; coordinate with buyers, sellers, real estate agents, and lenders to ensure that the closing goes smoothly; record documents; disburse funds in accordance with the settlement statement; and hold funds in escrow in accordance with buyer, seller and lender instructions.

See the What we do page for a more complete discussion.

How can sellers use the trackIT! system?
The trackIT! ^tm system is the perfect tool for sellers to use to monitor the buyer's progress toward closing. One of the most frustrating things for a seller is uncertainty -- has the buyer ordered title services? is my title clear? is the file clear to close? what is my loan payoff? how much money will I net at closing? With trackIT! ^tm, all of these issues are easily resolved by logging into the secure system and viewing or downloading relevant documents. Milestones are displayed on the progress bar.

What are MG Title's fees to sellers?
We would need to review the sales contract to answer this question. Sales contracts typically allocate settlement charges between the parties in some fashion.

What is a HUD-1?
The HUD-1 is the standard "settlement statement" used in connection with real estate transactions. Federal law requires the HUD-1 to be used as the real estate settlement form in all transactions in the U.S. involving federally related mortgage loans. The form itemizes all charges imposed on a borrower and seller in connection with the transaction, adjusts between them any pre-paid, unpaid or agreed items, and provides each party with a detailed picture of what happens with their incoming and outgoing funds.

MG Title provides a current copy of the HUD-1 on our trackIT! ^tm system. The system advises the parties of any changes to the HUD-1 and enables borrowers/buyers and sellers to study the form with their agents and advisors in advance of the closing.

What happens at settlement/closing?
At the settlement, our settlement officer "closes" the transaction by explaining (as permitted under local law) each of the closing documents and ensuring that the buyer and seller sign each where required. The settlement officer also reviews with the parties a settlement statement (HUD-1) which shows how all of the settlement funds are to be handled. He or she collects all necessary funds and then disburses them in accordance with the settlement statement.

The parties' respective shares of the closing costs are typically outlined in the sales contract. Closing costs may include state and local government transfer and recordation taxes and fees, lender and broker fees, real estate commissions, municipal charges, bills for pest inspections and surveys, homeowner insurance premiums, lenders' and owners' title insurance premiums, title company charges, real property taxes, homeowners' or condominium association dues or assessments, and any other invoices or items to be paid or adjusted at closing. Funds are often held in escrow by MG Title to respond to various items or circumstances agreed to in advance by the parties.

What do I need to bring to settlement/closing?
All parties must bring an unexpired government issued photo identification such as a driver's license or passport to the closing, since MG Title is required to verify the identity of all parties. Social Security cards are also required by certain lenders.

If you are a seller and a non-resident alien (i.e., a Foreign Person as that term is used under the IRS regulations), please immediately alert MG Title to this fact and also expect to have a portion of the sales proceeds withheld at closing. If you are subject to withholding and you fail to so alert us, this will delay the closing.

The State of Maryland requires us to withhold a portion of the sales proceeds from sellers of Maryland real estate who are not Maryland residents (certain exceptions apply). Please click here for a disclosure concerning the withholding. The rates were recently increased yet again.

Except for any items the sales contract obligates you to provide at settlement, such as keys to the property, nothing else is required unless you choose to have your proceeds wired into your bank account—in which case you will need to bring specific wiring instructions for the account to which the funds will be transmitted. If you would like to provide this information to us prior to closing, print out and return to us a completed Authorization to Disburse Proceeds Form. Alternatively, you may bring a voided check or deposit slip to closing, but you should confirm in advance with your bank that you have the proper ABA# (routing number) for wire transfers. Homeowners who are refinancing and taking cash out and wish to have the funds wired should similarly bring wiring instructions, a voided check or deposit slip to closing.

Who will be at the settlement/closing?
Unless otherwise agreed, all buyers, sellers, and their respective real estate agents will attend the closing which is conducted by the MG Title settlement officer. Lender representatives are sometimes in attendance.

How long will the settlement/closing take?
The settlement of a sale / purchase lasts approximately one hour. If any complications arise or if there are several buyers or sellers, it could take longer.

What if I will be unable to attend closing?
If a seller cannot attend the closing, please notify MG Title as soon as possible, since a Power of Attorney will need to be prepared. This entails formally appointing someone such as a spouse or other relative or friend to sign all the documents on your behalf. This person will need to attend the closing in your place and bring proper identification with him or her.

What if I have other questions?
Our team is in contact with our office network (voice and email) around the clock. Please contact us at any time.