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VOL. 8 | NO. 32 | Saturday, August 1, 2015


Richard Courtney

New Closing Regulations Create Title Company Anxiety


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Real estate is still hot in the Nashville area, with July expected to be another record month. Even so, showings seem to be slowing, and listings mounting.

With a little luck, buyers may soon have options.

That reversal would spur sales even further, perhaps resulting in another record autumn.

In mid-recovery, the Feds sent shock waves through the title company community last year when it announced the HUD-1, often referred to as the closing statement, was going to be revamped to take effect on August 1.

As attorneys from across the land flocked to seminars that would train them and their staffs on the new forms, they retuned scratching their heads and licking their wounds. The new forms were not yet released.

They were forced to practice on drafts of what some felt the new documents might look like when they finally appear.

When those attendees attempted to train the real estate brokerage community on the draft of the suggested proposed forms, the feedback was understandably negative, for all that seems to have happened is that closing had to be booked three days out and, if anything changed in those three days, the clock starts over and everyone has to wait an additional three days.

In the lives of most professionals, such a mandate might seem reasonable.

If the numbers are all in order, waiting around for three days to close should be practical.

The problem is most sales are stacked like dominoes.

House A closes and funds House B, which buys House C. What happens when House B’s lender has to change the HUD?

House A closes, but B and C cannot, so A has nowhere to go.

Anyone attempting to find a hotel room in Nashville lately has discovered that it is difficult with bachelor and bachelorette parties have seizing Music City.

The good news is that the Feds have not been able to implement their system that is designed to punish those who are tardy in entering numbers into their new system.

Perhaps since the deadline was missed, the Fed should have to wait three years to close on this deal.

The costs to the title companies is astronomical, according to Brandon Miller with Wagon Wheel Title, who says some title companies may have to shut their doors when the changes are implemented.

Smaller title companies cannot afford the infrastructure to implement the new system, he explains.

As Ronald Reagan once said, “The nine most terrifying words in the English language are ‘I’m from the government and I’m here to help.’”

Sale of the Week
Fifteen years ago Nashville had few, if any, homes the likes of 3400 Pleasant Valley Road.

This modernistic gem, despite being located in a flood plain, sold within two days of hitting the market.

The flood insurance requirement was not a deterrent for Allen Perry’s buyer, who saw the beauty of this home somewhere over the rainbow after the deluge.

Listing agent Mary Beth Thomas of Parks noted that Patrick Avice du Buisson was the architect. Just a hunch, but my guess is that he ain’t from around here. Nor is his design.

Thomas, in her description of the property, noted “the renovated master bath is to die for,” and that the house has a “modern look and feel, but it comes with the sensibilities that make your life easier.”

Everyone needs some sensibilities that make their lives easier, and Monsieur du Buisson has provided those for the owner. Reckon how the appraiser adjusts for them?

• Lot value: $350,000
• Construction cost: $250,000
• Adjustment for master bath: +$20,000
• Adjustment for flood plain: -$12,875 (a number that I created)
• Adjustments for sensibilities that make your life easier: +$100,000

Thomas notes that there is a beautiful greenway was just created next to the house with landscaping and a .75-mile walkway.

Since the Flood of 2010, there have been a few greenways created around town.

Perry negotiated a price of $385,057 for the 1,801-square-foot structure, or $213.00 per square foot.

The architect should have a statue of the house placed in the Louvre.

It includes three bedrooms and three bidet-less baths.

Richard Courtney is a real estate broker with Christianson, Patterson, Courtney, and Associates and can be reached at richard@richardcourtney.com.

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