Fill - Free fillable Buyer Select Closing Agent U.S. Department of Housing PDF form

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Processed By _ Date: APPROVED

DENIED

U.S. Department of Housing and Urban Development

Office of Housing

Federal Housing Commissioner

Single Family Acquired Asset

Management System (SAMS)

Buyer Select Closing Agent

For properties identified for the “Buyer Select” closing agent program, the buyer will chose their own Escrow / Settlement Company.

HUD will not pay the escrow fee. The purchaser will be the responsible for any and all closing fees. Amounts listed on line 5 may be

applied toward closing fees. Please note Line 9 of the HUD-9548 Sales Contract must contain the name of the buyer selected

closing agent listed on this form.

TO ENSURE ACCURACY OF YOUR DOCUMENT, PLEASE UTITLIZE THE FILLABLE FORMAT BELOW

_HANDWRITTEN DOCUMENTS WILL NOT BE ACCEPTED_.

I/We authorize _

RAINE

to release a copy of the sales contract and all applicable addenda/amendments for the following

property to the closing agent/escrow company listed on this form.

FHA Case Number

Property Address City State Zip

Buyers Name Phone Number

Phone Number

Selling Broker Name Phone Number

Listing Broker Name Phone Number

TITLE COMPANY / CLOSING AGENT / ESCROW COMPANY INFORMATION

Company Name Phone Number

Primary Contact Person Phone Number

Secondary Contact Person Phone Number

Mailing Address City State Zip

Phone Number Email Address:

Has this closing/escrow company previously registered with HUD? YES

If yes, please enter Title ID#

If no, attach a copy of Closing/Escrow Company’s State license, evidence of Errors and Omissions insurance, and

evidence of appropriate fidelity bonding currently in place. .

Purchaser’s Signature Date:

Selling Agent’s Signature Date:

As the closing agent/company identified above, we agree that no release, whether written or oral, will be required from the

buyer or any other entity prior to forwarding the earnest money to the Department of Housing and Urban Development

_HUD_ or their authorized agent should the earnest money is determined as forfeited in part or whole, and such

determination is provided in writing by HUD or their designated representatives in accordance with HUD’s Earnest Money

Policy which the purchaser has signed.

Closing Company Authorized Agent: Date:

Signature

Closing Instructions And Certification

The following are general instructions and may not provide all disclosures for sales under special

programs or circumstances. The selected closing entity must read this certification thoroughly and

acknowledge prior to the contract being executed for the specified property.

HUD CASE NUMBER:

PROPERTY ADDRESS:

BUYER’S NAME:

As settlement/title company/agent, you must adhere to the following closing instructions to close

this sale between the US Department of Housing and Urban Development (HUD) and the buyer

identified on the attached executed sales contract. If you are unable to perform these tasks within

the required time frame (as defined on line 9 of the HUD Form 9548), please notify the buyer’s

Real Estate agent immediately.

As the settlement agent/title company, you must meet all applicable local and state standards as well as those

required by HUD. (See “Standards for Acceptable Closing Companies” contained in this document)

You must close this sale for only the buyer(s) identified on the executed sales contract, or

amendment/addendum which has been executed by the buyers and RAINE.

EARNEST MONEY: RAINE will NOT include the earnest money with the fully executed sales contract.

The earnest money will be delivered within (2) business days of receiving the executed sales contract from

the Listing Broker. If you do not receive the EM please notify RAINE by the (3

) third day.

REAL ESTATE TAXES: Real estate taxes for the current year shall be pro-rated to the date of

closing. HUD will only pay for taxes currently due and will not pay or reimburse any party after

closing if real estate taxes are reassessed by local government.

HOMEOWNER ASSOCIATION (HOA) FEES/DUES: HUD will pay for HOA fees/dues pro-rated

from the date of HUD’s ownership to the date of closing. HUD will only pay for HOA fees/dues that

are the legal responsibility of HUD during its ownership in accordance with State Statutes .

RENTAL MONIES: You will be provided special instructions from RAINE in case the property is

being purchased by a HUD approved tenant.

Page 1 of 6

Page 2 of 6

Closing Instructions And Certification

SPECIAL PROGRAMS: HUD has a number of special programs, including the Good Neighbor

Next Door (GNND) Sales program, in which the buyer receives a discount off the purchase price,

as indicated on the executed sales contract.

Further, some sales such as those under GNND require a second Note and Deed of Trust/

Mortgage and/or a Land Use Restriction Addendum. If applicable to this sale, special

instructions for the completion of those documents are attached or will be supplied by RAINE. Please

contact RAINE if you do not receive these instructions.

For properties covered by an Asset Control Area (ACA) Agreement, RAINE will provide additional

closing instructions.

CLOSING COSTS: HUD will pay up to the amount on Line 5 of the executed sales contract towards

reasonable and customary closing costs and the amount shall be annotated on the HUD 1 in

accordance with RESPA. Any unused portion will be credited to HUD’s proceeds.

Closing Agent Fee: The purchaser is responsible for any and all closing fees up to the maximum

allowed per State Law and Regulatory requirements. The buyer may apply amounts listed on line 5

of the sales contract for payment of closing fees.

Recording fees for the Special Warranty/Grant Deeds transferring ownership from HUD to the buyer

as stated on the executed sales contract, for the second Note/ Deed of Trust, if required for special

HUD programs, and for special addendums, if required, such as Land Use Restriction Addendum, are

the expense of the buyer. This expense may be covered from funds on Line 5 of the executed sales

contract. If the buyer did not request funds on line 5, the amount to cover the cost of recording shall

be collected from the buyer at closing. The recording of the Deed may not be relinquished to any

other party.

EXTENSION FEES: All requests for extensions must be submitted to RAINE for review and are not

guaranteed. Fees must be made payable to HUD. Requests must include the appropriate extension

request form, lender documentation or proof of funds and fee. There are instances in which a free

extension may be granted. Additional information and instruction have been provided on the

Forfeiture and Extension form.

SETTLEMENT DOCUMENT PREPARATION: You must accurately prepare the Preliminary HUD-

1, ALTA, Closing Disclosure, or Settlement Statement and provide it to RAINE five (5) business

days in advance of the scheduled closing date for their review, approval, and return prior to

closing. This can be accomplished electronically.

DEED PREPARATION: You must prepare a Special Warranty or Grant Deed (where applicable)

and provide it to RAINE along with the Closing Disclosure, Settlement Statement, ALTA, or HUD-

1 for review. RAINE will execute, notarize, and return an original Deed via two-day delivery.

Page 3 of 6

Closing Instructions And Certification

WIRE PROCEEDS: You must wire HUD’s proceeds to the US Treasury via FEDWIRE the day of but

not later than the next available banking day after closing, ensuring the amount matches that of the

executed closing documents. RAINE will provide specific wiring instructions, including the form to be

used. The case number shown on the sales contract package MUST be included on the wire for the

funds to properly posted in HUD’s system of record.

DEED RECORDING: You must ensure the deed is delivered for recording to the appropriate county

recorder’s office no later than one (1) business day after closing.

NOTIFICATION OF CLOSING: You must notify RAINE via email on the day the closing has or has not

occurred.

CLOSING PACKAGE: You must deliver a complete closing package to RAINE not more than two (2)

business days after the closing is completed. At a minimum, the post-closing package shall include the

following:

Final HUD-1 and the HUD 1 Certification;

Copy of the wire of proceeds transfer confirmation;

Evidence that the deed was delivered for recording;

Copy of any invoice HUD paid at closing;

Copy of disbursement log, accounting for all incoming and outgoing funds related to this

transaction.

Additional information and instruction on a complete final package will be provided by

RAINE after contract execution.

CANCELLED SALE: If a sale is canceled and not immediately rescheduled, the deed must be

returned to RAINE within two (2) business days of the original scheduled closing date. If the

sale does not close on the scheduled date, notify RAINE immediately via email as to the date the

closing is rescheduled or if it has been canceled.

If the sale has not been rescheduled or is canceled, the Closing Company shall scan the original of the

signed deed, marked VOID in large letters across the front, and electronically deliver it to RAINE no later

than the second business day after a closing is cancelled. The original document will then be mailed to

RAINE that same day, along with the earnest money deposit and extension fees that are in your

possession.

Page 4 of 6

Closing Instructions And Certification

FORFEITED EARNEST MONEY: Comply with the earnest money forfeiture policy that was signed

by the buyer(s) and is part of the executed sales contract package. Earnest money forfeitures are to

be sent to RAINE, payable to HUD, within 3 business days of the earnest money disposition issued by

RAINE or expiration of the contract whichever shall occur first.

HUD, nor RAINE, will be responsible for paying a cancellation fee, if the sale does not close and

the contract is cancelled, regardless of reason. Cancellation fees may not be deducted from the

earnest money or any other funds held by the closing agent.

STANDARDS FOR ACCEPTABLE CLOSING COMPANIES

Buyer Selected Closing Companies (BSCC) must certify that they meet the following standards:

1. A BSCC must be an attorney, title company, or escrow company. In addition, any BSCC

must meet all requirements of state and local laws for the applicable entity type (e.g., if the

property is in a state that bans attorneys from conducting a closing, an attorney may not be

used as a BSCC).

a. Use of attorneys - An attorney or law firm may act as a BSCC, provided that they are duly

licensed to practice law in the state where the property is located and state law allows an

attorney to facilitate Real Estate closings.

b. Use of title companies - A title company may act as a BSCC, provided that they are

duly licensed to do business in the state where the property is located, and are

regulated by the State Insurance Commission, or similar regulatory agency recognized

by the State.

c. Use of Escrow Company - An escrow company may act as a BSCC, provided that

they are duly licensed to do business in the State where the property is located and

meet all state legal and regulatory requirements as a recognized and registered

escrow company.

2. Insurance and Closing Protection Letter requirement - Any BSCC must be covered by

Errors and Omissions Insurance of at least $1,000,000. Title companies shall provide a

Closing Protection Letter (CPL) when required to insure against any improper handling of

HUD's proceeds or deed.

3. Conflict of Interest - A BSCC who has, or whose immediate family member, or business

associates have, a financial interest in the property shall not be involved in the closing

process. Financial interest includes having an equity, creditor, lender, or debtor interest in

any corporation, trust, or partnership with a financial interest in the property.

Page 5 of 6

Closing Instructions And Certification

4. Debarment or suspension - No attorney, Title Company, Escrow Company, or BSCC,

currently debarred, suspended, or otherwise excluded from participating in HUD

transactions or federal programs, may participate in any aspect of the closing or title

clearance process.

5. Non-Discrimination - No BSCC, employee, or person or entity otherwise authorized to act

for a BSCC agent may act in violation of Title VIII of the Civil Rights Act of 1968 (the "Fair

Housing Act" Title VIII or Public Law 90-284) or Executive Order 11063. BSCC’s, their

employees, and any person or entity otherwise authorized to act on behalf of a BSCC shall

(1) refrain from discrimination on the basis of race, color, creed, religion, sex, sexual

orientation, gender identity, marital status, national origin, age or handicap; (2) instruct

their staffs in the policies of nondiscrimination and all applicable local, State, and Federal

fair housing and non-discrimination laws.

6. Failure to Abide by HUD’s Closing Instruction – Failure to adhere to HUD requirements

or guidance may result in sanctions including, but not limited to civil money penalties or

administrative action against any person, part, company, form, or business.

7. I fully understand that it is a Federal crime punishable by fine or imprisonment, or both, to

knowingly make any false statements concerning any of the above facts, and/or standards as

applicable under the provisions of Title 18, United States Code, and Section 1001, etseq.

Page 6 of 6

Closing Instructions And Certification

I, the undersigned, for myself and any business entity I represent, certify that I have read this

document and can and will perform all the duties and tasks required by the terms of this document,

and comply with all of the laws, regulations and standards specified in this document. I further

understand and will comply with these instructions and requirements and any subsequently

provided written instructions provided by HUD directly or RAINE, for the sales transaction named on

the attached executed Sales Contract, and understand that my failure to comply with such

instructions and requirements and/or perform such duties and tasks may subject me to sanctions,

administrative actions, or civil money penalties.

Date: ____________ Authorized BCSA Signature: ___________________________________________

Printed Name with Title: ___________________________________________

Telephone#______________ Email: ________________________________

State License #________________ HUD Title ID (If known) #____________

HUD CASE NUMBER:

PROPERTY ADDRESS:

BUYER’S NAME:

Acknowledgement and certification of this document MUST be submitted with the sales contract or

there will be a delay in execution. Once the contract has been executed, additional training

information will be provided, including designated email addresses for RAINE.

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