It is customary and prudent for a buyer and seller to have a third, disinterested party to assist them in carrying out the terms of their agreement. In Colorado, this procedure is known as Closing or Settlement Process. When opening a Settlement Process, the buyer and seller establish terms and conditions for the transfer of ownership of property. This is created shortly after you execute the contract to purchase your home. The Closing company becomes the depository for all monies, instructions and documents. The Closing Officer has the responsibility of seeing that all terms of the closing are carried out.
How does the closing process work?
The closing company holds all monies, instructions and documents for the purchase of your home, including your down payment funds and your lender’s funds and documents for the new loan. The closing officer takes instructions based on the terms of your purchase agreement and your lender’s requirements. The closing officer can hold inspection reports and bills for work performed as required by your purchase agreement. Other elements of the closing include hazard insurance, title insurance and the grant deed from the seller to you.Closing cannot be completed until the instructions (requirements) have been satisfied, and all parties have signed escrow documents.
The closing agent duties include:
- Serve as the neutral agent and the liaison between all parties involved.
- Prepare the closing instructions.
- Request a Preliminary Title Search to determine the status of title to the property.
- Comply with the lender’s requirements as specified on its instructions to close.
- Receive and handle purchase funds from the buyer.
- Prepare or secure the deed and documents related to the closing.
- Prorate taxes, interest, insurance and rents.
- Secure releases of all contingencies or other conditions imposed on the closing.
- Record the deed and any other documents.
- Request title insurance policy.
- Close the deal pursuant to instructions supplied by the seller, buyer and lender, if any.
- Disburse funds as authorized by the instructions, including charges for title insurance, recording fees, real estate commissions and loan payoffs.
- Prepare final statements for all parties involved that account for the disposition of all funds held in the escrow account.
How do I open an escrow?
Your real estate agent will open the escrow for you. As soon as you execute your purchase agreement, your deposit is given to the title company for deposit into the escrow account. How will you know where your money has gone? Written evidence of your deposit generally is included in your copy of your purchase contract. Your funds will then be deposited in your separate escrow or trust account and processed through your local bank.
Closing Instructions
Closing instructions define all the conditions that must occur before the transaction can be finalized. Your closing instructions specify, in a debit and credit format, the disposition of your purchase funds. They also provide for title protection for your home.
What information will I have to provide?
You may be asked to complete a statement of identity. Because many people have the same name, the statement of identity is used to identify the specific person in the transaction through such information as date of birth, social security number, etc. This information is kept confidential.
How long is the Closing Process?
The length of a closing is determined by the terms of the purchase agreement and can range from a few days to several months. On average, it takes 30 to 45 days.
While there’s no such thing as a typical home sale – each has a character and a flow of its own – there are certain aspects you can expect. While practices may vary, here are the basic activities that occur during the transaction, from receiving an offer to closing.
Your role during the escrow process should be an active one. Don’t wait for the seller to volunteer information – stay on top of it yourself and take reasonable care, along with me, your agent, to protect yourself.
For example, when you review the Transfer and Disclosure Statement, TDS, keep an eye out for questions answered “unknown” or left unanswered. Ask about them until you are satisfied with the answers.
Let’s talk about your specific concerns or plans for the property. Concerned about the open parcel behind the house? Ask about it!
You may also wish to investigate the following non-physical conditions, including:
- Governmental zoning, requirements and limitations
- Governmental permits, inspections or certificates
- Limitations, restrictions and requirements affecting use of the property
- Rent and occupancy control
- Schools
- Proximity and adequacy of law enforcement, crime statistics, proximity of registered sex offenders (see section on Megan’s Law) and other criminals
- Proximity to fire, police and other services
- Proximity to commercial, industry or agricultural activities
- Existing and proposed transportation, construction and development, which may affect noise, view or traffic, airport noise, or odor
- Wild and domestic animals, other nuisances, hazards or circumstances
For Further Protection
Home Warranties: Home warranties have become a more popular option on homes for sale. For protection you may wish to have a home warranty that either you or the seller pays for. (It’s negotiable.) Warranties range in price from $300 – $600 and, for a fixed rate, generally cover limited aspects including plumbing, electrical, pest control and a host of other related areas. If you have a problem, generally you’ll pay $35-$50 to have a professional come out inspect and fix problems that are covered. Warranty agents typically are on hand 24 hours a day, 7 days a week to take your calls in emergencies on hand 24 hours a day, 7 days a week to take your calls in emergencies.
During the escrow process, you will be informed of specialized conditions that affect the home you wish to purchase. They may include the following:
Lead Paint
Sellers of properties built prior to 1978 have the following obligations to you:
- Give you a HUD pamphlet entitled “Protect Your Family From Lead in Your Home”
- Disclose all known lead-based paint and related hazards and provide you with any available reports
- Include a standardized warning as an attachment to the contract
- Complete and sign statements verifying that requirements have been met
- Retain the signed acknowledgement for 3 years
- In addition, sellers must give you a 10-day opportunity to test for lead
Special Tax Districts
Especially (but not exclusively) if you are buying a home in a newer area, you may be locating into a special tax district, and the seller must provide to you a “Notice of Special Tax” to let you know. If this notice is delivered to you in person, you have three days to rescind your offer. If it’s delivered via U.S. mail, you have five days to decide.
Basically, a “special Tax Community Facilities District” is formed by a local government, district, or agency to finance public services and facilities including police and fire departments, ambulance and paramedic services, parks, schools, libraries, museums and cultural facilities.
Condominiums etc.
If you’re buying a condominium, townhouse or other planned development (for purposes of this discussion, we will call them all “condominiums”), there are things you need to know about common areas (such as greenbelts and recreational rooms) and the homeowner’s association.
You will be required to make monthly payments, known as regular assessments, to maintain common areas, as well as special assessments to replace a roof or repair the plumbing, as determined by the homeowner’s association (HOA).
Condominiums also may have regulations regarding architectural requirements, limitations on pets, and age restrictions (i.e., senior housing). These must be formally disclosed to you during escrow. You may receive this information via the following documents, to the extent that they exist and are available:
- Declaration of Restrictions: Commonly known as “CC&Rs”, or Conditions, Covenants and Restrictions
- Articles of Incorporation or Articles of Association Bylaws
- All current financial information and related statements, including operating budget, estimated revenue and expenses, HOA reserves, estimated remaining life of major components (including roofs, plumbing etc.), and regular and special assessments
- A statement describing the HOA’s policies and practices in enforcing lien rights or other legal remedies for default in payment of its assessments
- A summary of the HOA’s property, general liability,flood insurance policies
- On existing HOA’s, a statement describing any restrictions on the basis of age, such as authorized senior citizen housing
Many smaller HOAs will not have all of these documents, but must provide what they do have. We recommend that you review these documents thoroughly, because they will affect you firsthand.
Megan’s Law
If a registered sex offender lives in the neighborhood in which you want to locate, you have the right to investigate – this is made possible due to a 1996 statute known as “Megan’s Law.” (Note that the seller does not have an obligation to provide this information to you.)
To investigate, you may:
- Log on to: http://sor.state.co.us/?SOR=home.home
- Call your local Police Department
Step 1. The Application
The key to the loan process going smoothly is the initial application interview. At this time the loan officer obtains all pertinent information and documentation so unnecessary problems and delays may be avoided. This is the best time to discuss loan programs best suited to meet the homebuyer’s needs.
Step 2. Automated Underwriting
After the application is completed, the loan officer inputs the application into the automatic underwriting system. This is an automated financial evaluation program that analyzes the data from the loan application of the borrower, such as income, credit history, debts, property details, debt-to-income rations, etc. This process evaluates the borrower’s financial picture and makes a credit decision. In conjunction with this review, the loan officer requests a credit report run on the borrower(s).
Step 3. Requesting Documentation
The next step after receiving the initial lending decision is that the loan officer will request certain documents such as bank statements, W2’s (2 years), verification of funds, landlord details and any other supporting documentation that has been requested.
Step 4. The Homebuyer Goes into Contract on a Property
Step 5. Loan Submission
Once all of the necessary documentation has been acquired, the loan officer puts the loan package together and submits it to the underwriter for final approval. The final loan package includes the contract on the property, the property appraisal, preliminary title reports and any conditions that were identified in the automated underwriting process. The loan officer submits the final loan package to the underwriter for formal loan approval.
Step 6. Loan Approval
The underwriter reviews the contract, property appraisal and preliminary title reports and validates the conditions from the automated underwriting process. File disposition is achieved. Assuming all criteria are met, the loan is approved and/or other conditions may be requested as terms of funding.
Step 7. Rate Lock
The loan officer will discuss the loan programs available to the homebuyer(s) in conjunction with discussing the final loan approval and conditions. Based on the outcome of the property purchase and final loan approval process, the buyer may wish to or need to review other loan programs. A final loan program decision is reached and the request for rate lock is made.
Step 8. Documents Are Drawn
After the loan approval, the loan documents (including the note and deed of trust) are completed and sent to the title company. The escrow officer calls the borrowers to come in when the papers are ready for final signature. At this time, the borrowers are told how much money they will need to bring in to close the loan.
Step 9. Funding
Once all the parties have signed the loan documents, they are returned to the lender, who reviews the package. If all of the forms have been properly executed, the funds are then transferred. At closing, the borrower must present a cashier’s check or arrange for a wire transfer of funds directly to the title company for the required closing costs and payments. No personal checks are accepted. Also, funding conditions must be submitted and satisfactorily met at this time.
Step 10. Recordation
When the title company receives the funding check from the lender, the title company makes the lender’s security for the loan a matter of public record. This is done by recording both the note and deed of trust at the County Recorder’s office. Escrow is now officially closed.
Below are some of the costs you may incur. Some are one-time fees, while others recur over the life of the loan. When you first apply for your loan, you will receive a Good Faith Estimate of Settlement Charges and a booklet explaining these costs, to minimize surprises. Generally, you can expect closing costs to equal from 3 to 6 percent of your mortgage loan amount.
Appraisal Fee
This is a one-time fee for an “appraisal,” a statement of property value required on most loans. An independent fee appraiser makes the appraisal. Unique and more expensive homes usually have a higher appraisal fee.
Credit Report Fee
This one-time fee covers the cost of your credit report, which is processed by an independent credit-reporting agency.
Document Preparation Fee
There may be a separate, one-time fee that covers preparation of the final loan papers, including the note and the deed of trust.
Loan Origination Fee
Often referred to as “points,” one point is equal to one percent of the mortgage loan. As a rule, if you are willing to pay more in points, you will get a lower interest rate. Anything in addition to one point is referred to as “discount points.”
Miscellaneous Title Charges
The Title Company will charge fees for a policy of title insurance and escrow services, which may include charges for document preparation, notary fees, recording fees and a settlement of closing fee. These are all one-time charges. Local custom by county will dictate whether buyer or seller pays all or a portion of these fees.
Private Mortgage Insurance (PMI) Premium
Depending on the amount of your down payment (generally less than 20%), you may be required to pay a fee for private mortgage insurance, which protects the lender against loss due to foreclosure. You may also be required to place funds into a special reserve account (called an impound account) for PMI, which will be held by the lender.
Prepaid Interest
Depending on the day of the month your loan closes, this charge may vary from a full month of interest to just a few days of interest. If your loan closes near the end of the month, you will have to pay only a few days of interest.
Taxes and Hazard Insurance
Based on the month you close, property taxes will be prorated between you and the seller. You may also be required to pay a full year’s hazard insurance (or homeowner’s insurance) premium in advance. In addition, you may also be required to place funds into a special reserve account (impound account) for taxes and insurance, which is held by the lender. You absolutely must have this to obtain a mortgage.
The “dwelling coverage” portion of your hazard insurance covers costs to completely rebuild your home, while the “liability coverage” protects you against accidents that occur on your property. “Personal Property Coverage” pays to replace your possessions and generally totals 50 to 75 percent of the dwelling coverage amount. Flood and earthquake insurance policies also are available and are recommended if you are in high-risk areas.
Title Insurance Fees
There are two title polices – a buyer’s policy, which protects the new homeowner, and a lender’s title policy that protects the lender against loss due to a defect in the title. These are both one-time fees.
Closing Costs: The Good Faith Estimate
The Good Faith Estimate of loan closing costs are made pursuant to the requirements of the Real Estate Settlement Procedures Act (RESPA). These are estimated settlement costs which the buyer will be responsible for in conjunction with the settlement of the mortgage loan. There are two general categories of closing costs, non-recurring and recurring. Non-recurring closing costs are items that are paid once, while recurring costs are items paid repeatedly over the life of the loan.
This is a detailed summary of costs you may have to pay when you buy or refinance your home. They are listed in the order in which they should appear on a Good Faith Estimate you obtain from your mortgage lender. Elements of the Good Faith Estimate are: (Costs will apply differently to each homebuyer and are not particular in total to all homebuyers)
| Non-Recurring Closing Costs Associated with the Lender: Loan Origination Fee Loan Discount Fee Appraisal Fee Credit Report Fee Lender’s Inspection Fee Mortgage Broker Fee Tax Service Fee Flood Certification Fee Flood Monitoring Other Lender Fees Document Preparation Fee Underwriting Fee Administration Fee Appraisal Review Fee Warehousing FeeOther Lender Fees Document Preparation Fee Underwriting Fee Administration Fee Appraisal Review Fee Warehousing FeeItems Required to be Paid in Advance Prepaid Interest Homeowner’s Insurance VA Funding Fee Up Front Mortgage Insurance Premium (UFMIP) |
Reserves Deposited with the Lender: Homeowners Insurance Impounds Property Tax Mortgage Insurance ImpoundsNon-Recurring Closing Costs not associated with the Lender: Closing/Escrow Fee Title Insurance Notary Fees Recording Fees Pest Inspection Home Inspection Home Warranty Homeowner’s Association Transfer FeeRefinancing Associated Costs Interest Reconveyance Fee Demand Fee Sub-Escrow Fee Loan Tie-In Fee |
Closing Costs: An Explanation of Terms
NON-RECURRING CLOSING COSTS ASSOCIATED WITH THE LENDER:
Loan Origination Fee: The loan origination fee is often referred to as “points”. One point is equal to one percent of the mortgage loan. As a rule, if a borrower is willing to pay more in points, then the borrower will get a lower interest rate.
Loan Discount Fee: On a government loan, the loan origination fee is normally listed as one point or one percent of the loan. Any points in addition to the loan origination fee are called “discount points”. On a conventional loan, discount points are usually lumped in with the loan origination fee.
Appraisal Fee: Since the property serves as collateral for the mortgage, lenders want to be reasonably certain of the value and they require an appraisal. The appraisal is used to determine if the price you are paying for the home is justified by recent sales of comparable properties. The appraisal fee varies, depending on the value of the home and the difficulty involved in justifying value. Unique and more expensive homes usually have a higher appraisal fee. Appraisal fees on VA loans are higher than on conventional loans.
Credit Report Fee: As part of the underwriting review, the mortgage lender will want to review the borrower’s credit history. The cost varies depending upon the type of report requested.
Lender’s Inspection Fee: This is generally associated with new construction and is associated with what is called a 442 inspection. Since the property is not finished when the initial appraisal is completed, the 442 inspection verifies that construction is complete with carpeting and flooring installed.
Mortgage Broker Fee: About seventy percent of loans are originated through mortgage brokers and sometimes the points associated with the loan are listed here instead of under Loan Origination Fee. They may also add in any broker processing fees in this area. The purpose is to clearly indicate how much is being charged by the wholesale lender and how much is charged by the broker. Wholesale lenders offer lower costs/rates to mortgage brokers than you can obtain directly, so you are not paying “extra” by going through a mortgage broker.
Tax Service Fee: During the life of the loan the borrower makes monthly property tax payments, either on one’s own or through an impound account with the lender. Since property tax liens can sometimes take precedence over a first mortgage, it is in the lender’s interest to pay an independent service to monitor property tax payments.
Flood Certification Fee: The lender must determine whether or not the property is located in a federally designated flood zone. This fee is usually charged by an independent service to make that determination.
Flood Monitoring: From time to time flood zones are re-mapped. Some lenders charge this fee to maintain monitoring on whether this re-mapping affects the property.
OTHER LENDER FEES:
Document Preparation Fee: Before computers made it fairly easy for lenders to draw their own loan documents, they used to hire specialized document preparation firms for this function. This was the fee charged by those companies. Now lenders draw their own documents and a fee is charged on almost all loans.
Underwriting Fee: A fee is charged for the cost of underwriting the loan.
Administration Fee: If an Administration fee is charged, then generally there will not be a fee for underwriting.
Appraisal Review Fee: Even though a borrower will probably not see this fee on a Good Faith Estimate, it is charged occasionally. Some lenders review appraisals as a quality control procedure and charge for the activity.
Warehousing Fee: This is rarely charged, however, some lenders have a warehouse line of credit and add this as a charge to the borrower.
ITEMS REQUIRED TO BE PAID IN ADVANCE:
Prepaid Interest: Mortgage loans are usually due on the first of each month. Since loans can close on any day, a certain amount of interest must be paid at closing to get the interest paid up to the first of the month.
Homeowner’s Insurance: This is the insurance paid to cover possible damages to the home and other items. Normally the first year’s insurance is paid at the close. When purchasing a condominium, the Homeowner’s Association Fees normally cover this insurance.
VA Funding Fee: On VA loans, the Veteran’s Administration charges a fee for guaranteeing the loan. Based upon the use of the borrower’s VA eligibility, the fee is either two or three percent of the loan balance. Instead of paying for this as an expense, commonly it is financed into the loan balance.
Up Front Mortgage Insurance Premium (UFMIP): This is charged on FHA purchases of single family residences or Planned Unit Developments and is 2.25% of the loan balance. Like the VA Funding Fee it is normally added to the balance of the loan.
Mortgage Insurance: Though rare, some first time homebuyer programs require the first year mortgage insurance premium to be paid in advance. Most mortgage insurance is simply paid monthly along with the mortgage payment. Mortgage insurance covers the lender and covers a portion of the losses in those cases where borrowers default on the loan.
RESERVES DEPOSITED WITH THE LENDER:
Homeowners Insurance Impounds: The lender will divide the annual premium by twelve to determine the estimated monthly payment to the impound account. Since the lender is allowed to keep two months of reserves in the account, the borrower will need to deposit two months’ premiums into the impound account in the beginning.
Property Tax Impounds: This amount varies according to when the real estate transaction closes and when the taxes are due.
Mortgage Insurance Impounds: When required, lenders allow this premium to be paid monthly. However, a borrower may be required to put two months’ worth of mortgage insurance payments as an initial deposit into the impound account.
NON-RECURRING CLOSING COSTS NOT ASSOCIATED WITH THE LENDER:
Closing/Escrow Fee: The fees associated with the closing.
Title Insurance: Title Insurance assures the homeowner that they have clear title to the property. The lender also requires it to insure that their new mortgage loan will be in first position.
Notary Fees: Most loan documents have multiple sets that must be notarized.
Recording Fees: Certain documents are recorded with the local County Recorder’s Office.
Home Inspection: Since it is the homebuyer’s choice to obtain a home inspection, this cost may not be reflected on the Good Faith Estimate. However, it is highly recommended.
Home Warranty: This is an optional item. A Home Warranty usually covers such items as the major appliances, should they break down within a specific time. Often this is paid by the seller.
Homeowner’s Association Transfer Fee: When buying a condominium or a home with a Homeowner’s Association, the association often charges a fee to transfer all of their ownership documents to the buyer.
REFINANCING ASSOCIATED COSTS:
Interest: When closing the transaction on a refinance, there may be outstanding interest due on the old loan.
Re-conveyance Fee: This fee is charged by the existing lender when they “reconvey” their collateral interest in the property back to the borrower through recording of a Reconveyance.
Demand Fee: The existing lender may charge a fee for calculating payoff figures.
Sub-Escrow Fee: This fee is actually charged by the Title Company.
Loan Tie-In Fee: This fee is charged by the Escrow Company.
A major question in every closing is: “Who pays for what?” The answers vary by county ordinances and standard practices. What is listed below are “customary” practices. All fees charged are governed by terms of the sales contract and other written closing instructions. Note: on some FHA, VA or other government-backed loans, the seller will pay some fees that governmental regulations will not allow them to pay.
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Seller’s Generally Pay:
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Buyer’s Generally Pay:
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After all of the contingencies have been removed or satisfied, your loan has been finally approved and documents have been drawn, you are now ready to close. Here are some of the things that you should think about in advance of closing.
When do I sign closing instructions and where do I do this?
Your closing officer or myself will contact to sign your closing instructions and final loan papers. At this time, the closing officer will also tell you the amount of money you will need (in addition to your loan funds). Your loan funds will be sent directly to the title Company by the lender. You may sign your closing instructions and loan documents at a title company office, your real estate agent’s office or some other location agreed upon by all parties.
What should I look out for during the final walk-through?
Prior to your closing-day appointment, if provided in your Purchase Agreement, you will have the chance to perform, with your agent, a walk-through. This will likely be the first opportunity to examine the house without furniture, giving you a clear view of everything. Check the walls and ceilings carefully, as well as the results of any work the seller has agreed to do in response to the inspection’s findings. Any problems discovered previously that you find uncorrected which the seller agreed to correct, should be brought up prior to closing.
Good Funds
In order for escrow to close, you must provide what is known as “Good Funds.” This means that the Title Company can close:
- On the same day as your deposit if the final down payment and closing funds are deposited by cash or electronic transfer (“wired funds”).
- On the next business day after the business day of the deposit, if the funds were deposited by cashier’s check, teller’s check or certified check.
- If the payment is made by personal or business check, when the deposit is made available for withdrawal by depositors. Depositing banks may hold these types of funds for up to three business days for most “local” items and up to seven business days for “non-local” items.
The Closing Appointment
Once your loan is approved, you will be asked to go to the Title Company to sign the loan documents and closing instructions that specify disposition of your loan funds. You will sign these documents in the presence of a notary public. When you’ve signed everything, your lender will make one final review of the documents and conditions for closing. Once completed, the lender will send the loan funds to escrow. Often, lenders require three business days before the loan is funded. Below is a list of items you will need in preparation for the appointment to sign closing papers:
- Identification — One of the following forms of identification must be presented at the signing of escrow in order for the signature to be notarized: a current driver’s license, passport, State of Colorado Department of Motor Vehicles ID card.
- Cashier’s Check — You need a cashier’s check or a certified check issued by a Colorado or your financial institution made payable to the title company. If using a personal check, the title company may delay the closing until the check has cleared.
- Fire and Hazard Insurance — You must have fire and hazard insurance in place before the lender will send the money to fund the loan. Whenever you buy a home, you must have insurance. Provide your closing officer with the insurance agent’s name and contact information so they can make sure that the policy complies with your lender’s requirements.
What’s the next step after I’ve completed my sign-off?
After you have signed all the necessary instructions and documents, the closing officer will return them to the lender for a final review. Upon completion, the lender advises your closing officer that the loan is ready to be funded.
What is a “closing”?
Once all the conditions of the closing have been satisfied, the closing officer advises you of the date of closing and takes cares of the technical and financial details. The culmination of the transaction, an escrow closing signifies legal transfer of title from the seller to you. Usually the Grant Deed and Deed of Trust are recorded within one working day of the closing officer’s receipt of loan funds. This completes the transaction and signifies the “Closing.”
What do I get at closing?
Closing will record the deed of trust, disburse the funds, provide both parties with a final financial accounting in the form of a settlement statement, and close the escrow:
- Settlement Statement
- HUD-1 Form (itemizes services provided and the fees charged; it is filled out by the closing agent and must be given to you before closing)
- Truth-in-Lending Statement
- Mortgage Note
- Mortgage or Deed of Trust
- Keys to your new home
What can I expect to happen on closing day?
You’ll be asked to present your paid homeowner’s insurance policy or a binder and receipt showing that the premium has been paid. The closing agent will then list the money you owe the seller (remainder of down payment, prepaid taxes, etc.) and then the money the seller owes you (unpaid taxes and prepaid rent, if applicable). The seller will provide proofs of any inspection, warranties, etc. Once you’re sure you understand all the documentation, you’ll sign the mortgage note, promising to repay the loan. The seller will give you the title to the house in the form of a signed deed.
You’ll pay the lender’s agent all closing costs and, in turn, the lender will provide you with a settlement statement of all the items for which you have paid. The deed and mortgage will then be recorded in the County Recorder’s office. At that point, you officially will be a homeowner.
Disbursement of Funds Held in Escrow
In some cases, the closing agent will be instructed to hold funds in escrow to pay off obligations, which may not be completed until after the close. For example, funds may be set aside to correct a structural problem, remodeling or repair work. Upon completion of the project, the closing agent, having received proper documentation and releases will disburse the reserved funds.
When will I receive the deed?
The original deed to your home will be mailed directly to you at your new home by the County Recorder’s office. This usually takes several weeks and may take longer depending on regional activity.
After Closing…
If the funds from the new loan are being used to pay off an existing loan (generally, if you are selling one property and buying another), the old lender is required by law to issue a full re-conveyance (release) of its loan. As soon as the deed of reconveyance removing the previous deed of trust is received, it must be recorded and the original will be returned to you. This may take several weeks. However, this delay is normal, and is nothing to be concerned about.
Your lender may retain this loan in its own portfolio or may sell the loan to either a private or public agency, such as the Federal National Mortgage Association (Fannie Mae). In either case, you will receive specific instructions as to how to make your loan payments.
ASSESSMENT CALENDAR
The county operates on a timetable established by law known as the assessment calendar. Some of the important dates are as follows:
JANUARY 1 :Assessment Date Properties within the county are valued on the basis of their status and use on this date. Buildings that are partially completed are valued on the percentage of completion as of this date.
JANUARY 1: (or as soon as possible thereafter) Tax bills are sent out.
APRIL 15: Taxpayers who own taxable personal property must file a personal property declaration schedule by this date.
MAY 1:* The assessor mails Notices of Valuation to real property owners along with an appeal form. The assessor also gives public notice to all taxpayers concerning their rights to appeal the value placed on their property.
JUNE 1:* Real Property Protest Period If you disagree with the value assigned by the assessor, you have the right to file an appeal to the assessor’s office by June 1. The assessor must send the taxpayer a decision by the last working day in June.
JUNE 15 – JULY 5: *Personal Property Protest Period If you disagree with the personal property value assigned by the assessor, you have the right to file an appeal with the county assessor’s office not later than June 30 if mailed, and not later than July 5 in person. The assessor must mail the taxpayer a decision by July 10.
* Refer to the APPEALS PROCESS for exceptions to the appeal period for those counties electing to use the alternate appeal procedure. JULY If you are not satisfied with the assessor’s decision, you may file an appeal with the county board of equalization by July 15 for real property and by July 20 for personal property. The hearings begin on July 1. Further appeals may be made to the State Board of Assessment Appeals, District Court, or for binding arbitration.
AUGUST 25: The assessor certifies the current total assessed valuation to each taxing entity in the county.
DECEMBER 15 :Municipalities, counties, and special districts establish mill levies.
DECEMBER 22 :The county commissioners levy taxes. Note: If the date for filing any report, schedule, claim, tax return, statement, remittance or other document falls upon a Saturday, Sunday, or legal holiday, it shall be deemed to have been timely filed if filed on the next business day.
Payment Dates
Property Taxes become due on January 1st for the previous year. Payments may be paid in two equal installments or in one full installment.
| HALF-PAYMENT OPTION DUE DATE for 2015 March 2nd June 17 |
FULL-PAYMENT OPTION DUE DATE for 2015 April 30 |
Only HALF or FULL payments will be accepted.
