Brokers need to communicate early and often with buyers and sellers and work closely with buyers’ lenders, especially when it comes to TRID-governed transactions, writes Jeffrey T. Baker, IAR Transaction Hotline Attorney, in the November edition of D.R. Legal News for managing brokers (log in required).
Baker describes these suggestions as “best practices” and says brokers play a key role in keeping their buyers and sellers informed of process and timeline changes that took effect on Oct. 3, as the TILA-RESPA Integrated Disclosure rule changes kicked in.
For example, he noted the overall timeline for transactions could range from 45 to 60 days, and by talking about this upfront with clients, brokers can help to manage client expectations.
Baker also encourages brokers to:
- Encourage buyers to obtain financing pre-approval from a lender before they search for a new home;
- Help clients understand the timing and arrival of the Loan Estimate and when buyers must indicate their intent to proceed with the loan (also double-check with lenders and buyer-clients to see if the lender has a specific form that must be used for the intent to proceed);
- Help clients understand the timing of the Closing Disclosure forms;
- Encourage buyers to conduct final walk-throughs as early as possible to avoid closing delays, and
- Review office policies to ensure adequate protection of the buyer’s or seller’s personal information.
For more information on TRID best practices, six legal case studies and more, managing brokers can read the November D.R. Legal News.