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Today we are joined by Denise Scolaro from Cleveland Home Title to discuss the upcoming changes with the Consumer Financial Protection Bureau, or CFPB.
The CFPB is implementing TRID, or the TILA-RESPA Integrated Disclosure, on October 3rd. TRID will extend the period of time the buyer has to read the closing documents during a real estate transaction.
Agents will be required to write out a contract for at least 45 days. In total, there is a six-day period for the transaction to be completed. The seller has two days to send the documents over to the buyer, the buyer has three days to review, and then the last day is reserved for closing.
Your closing disclosure will change. The HUD settlement statement will still be present, but it will look different than before. The breakdown is going to be more finite, so it may cause some confusion when these changes are first implemented. We recommend that agents call the title company if you have any questions, rather than trying to answer them yourself.
The biggest thing that the buyer needs to be aware of is that transactions will take longer to close. They will be given more information that they need to look at before they can close the transaction, so it will take a little longer. The good news is the extended time frame gives you more time to ask questions and understand exactly what is going on.
For sellers, this means that simultaneous closes will no longer happen due to the new 45-day contract. Sellers will have the same opportunity to review their documents. For Sale By Owner sellers may not understand the process of the real estate transaction, especially with these new guidelines, so we strongly recommend working with a real estate agent.
Another thing for buyers and sellers to be aware of is sellers will need possession of the home for a week or two in order to close.
If you have any questions about today's video, you can contact Denise by calling (440) 213-6710 or sending an email to DScolaro@ClevelandHomeTitle.com. As always, if you have any questions about real estate, or if you're considering buying or selling a home, please give me a call or send me an email. We'd be happy to help you!
