Once the Sale Contract has been signed by all necessary parties the file will be referred to the law firm of Ruud & Leslie, hereinafter referred to as R&L. R&L was founded in 1977 and concentrates its practice in closing real estate transactions. Magnum and R&L have enjoyed a close association for over twenty years. During that time the two firms have developed an understanding and procedure for the successful closing of transactions. While a transaction is pending it often becomes necessary for the brokerage and legal firms to coordinate various facets of that transaction. The staffs of both firms have developed a system of communication and coordination which is essential to efficiently close transactions.
The procedure for closing the sale of REO properties:
- A retainer agreement is executed by the bank and R&L setting forth R&L’s services and fees for closing REO transactions.
- R&L will confer with the Bank authorities to establish a policy for acceptable Contract provisions and determine what customary closing costs will be paid by the Bank, if any.
- A Sale Contract Addendum reflecting the policies established in accordance with the previous “bullet” paragraph will be prepared by R&L and provided to Magnum for attachment to all offers received by Magnum.
- When the property is listed “for sale” Magnum will forward a copy of the listing agreement to R&L and a file is opened.
- During the marketing period Magnum refers all legal questions and special drafting requirements to R&L.
- R&L prepares the necessary closing documents and forwards to the authorized signatory of the bank.
- R&L attends the closing of the transaction and wire transfers the proceeds to the bank.
- All transactions are final and the bank will not have to perform any acts after the closing.
- R&L will be compensated from the proceeds of the sale.