The Conveyancing Addendum

Your real estate broker may advise you that they collect an administrative fee* to manage your transaction, a fee in addition to their sales commission. This fee averages $350 but we've seen it as high as $750 in our area, depending on the brokerage.

Also referred to as a broker service fee, flat fee commission or conveyancing fee, here is a an example of the services listed on a typical agreement. If your real estate broker has not provided a list of services, request a breakdown along with the cost so that you can decide if their service - and their fee - is necessary.

Here is a breakdown of the conveyancing service offered by a local real estate brokerage for an additional $395. If you're choosing your own title company, you won't need the broker to provide this service. Your title company should provide these services at no additional charge.

Service Listed
1. Order title insurance, review interim title binder.

The buyer can order their own title insurance online and in under 3 minutes.

2. Order the preparation of the new deed.

A title agent prepares the new deed as part of the settlement process.  Nobody needs to order a new deed.

3. Order mortgage payoff statements, real estate tax certifications and final recordable utility readings as required.

Obtaining the mortgage payoffs, tax certs and utility readings is the seller's responsibility and has nothing to do with the buyer.

4. Review financing opportunities and assist Buyer in mortgage application process.

This is the role of your lender or mortgage broker, not your real estate broker.

5. Assist real estate appraiser by providing comparable sales, property information and data as required.

This is the job of the real estate appraiser, and frankly, the entire point of hiring a professional.

6. Assist Buyer in the processing of the mortgage loan and securing mortgage approval.

The best way to help the loan process and secure your mortgage approval is to promptly reply to requests from the lender for additional information such as pay stubs, bank statements and tax returns. There's no reason to share financial information with your real estate broker.

7. Review the commitment letter for mortgage approval and assist in clearing and special requirements.

When the title commitment letter is ready, your title agent will review it and help clear any issues.

8. Provide Buyer's insurance agent with the required property information.

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9. Schedule, coordinate and notify in writing all appropriate parties of place and time of final settlement.

This is the role of the title agent.

10. Provide Buyer, in advance of settlement, with estimate of final settlement costs, and cash required for settlement.

This is the role of the title agent, who will work with your lender to provide you with the final, official numbers.

11. Attend settlement, review final settlement costs, coordinate all matters that arise between Buyer, Seller, Lender and Title Company.

This is the role of your title agent.

12. Produce and distribute copies of pertinent documents to all appropriate parties as required.

Your title agent will distribute copies of your final settlement paperwork and send you an official signed copy once recorded.

 

Remember, as a full service title company, ALT can provide the listed conveyancing services to the buyer at no additional charge when they use us for their title insurance.