New Rules Coming Soon.

On October 3rd, 2015 the rules of Real Estate are going to be changing.  Welcome TILA (Truth in Lending Act) RESPA (Real Estate Settlement Procedures Act) Integrated Disclosure rule or TRID.TRID RULES  Change is common now a days in Real Estate as new disclosure laws (most recently added Radon) and forms are added on an annual bases.  These changes however are driven by the Consumer Financial Protection Bureau (CFPB) and the purpose is to ensure that consumers get all the information with regards to their financial decision in a timely fashion.  Often times, we will see settlement statements the day before or even in some case the day of closing.  This can add a lot of undue stress and scrambling with a transaction.

Any changes made to the purchase agreement will require additional time for re-disclosure, which in turn could delay closing.  The issue that we have talked about as a team/office is what if something comes up at the final walk through that requires monetary compensation?  Typically a final walk through will be done either the day before or the day of closing so any changes to the purchase agreement would need to allow for the time needed for re-disclosure.  We have also been advised that most closings (unless cash) should have an additional 10-15 days added to the time frame.  Most likely putting the closings closer to a 40-45 day window.

With any change there are always challenges, however this change feels like a big win for the Real Estate Industry and Consumers as a whole.  With more regulations on the time tables in which lenders will need to have documents to both the consumers and title companies, the smoother the sale should move along in the end.  If you have any questions on how this may affect you, please feel to reach out.

About the Author

Katy Korby is the CFO of the Korby Home Team. Her passion is ensuring that our clients have an out-of-this-world experience selling their homes with the Korby Home Team. Katy comes to us with a diverse background and a unique skill set that enhances the client experience. Her attention to detail and care for people make her a wonderful asset to the team. Graduating with a degree in Theater, Katy has performed in numerous plays and most recently starred in a locally produced indie film that is being entered info film festivals around the nation. Katy’s experience in the work world include many positions within the accounting world including tax preparation, bookkeeping, and full-charge accounting. Most recently before joining the Korby Home Team, Katy was the Market Center Administrator for Keller Williams Integrity Realty in Roseville, where she was the full-charge accountant and handled budgeting and forecasting for the company as well as day to day operations and administration of an 80 person real estate office. Katy and her husband have two children, Libby and Calvin, and have lived in Como Park for almost two decades. In 2013, Katy completed the Tough Mudder 10 mile event and is a proud member of the “Finishers” group! For fun, Katy loves reading, photography and gardening and spending time with her family.