Real Estate Settlements & Mortgage Refinances FAQs

You, as the buyer, have the right to choose the attorney who handles your settlement. Your real estate agent can make a recommendation or provide you with the names of several real estate attorneys to choose from.

Under the Delaware Lawyers Code of Professional Responsibility, our office must disclose the following information to a buyer prior to accepting representation of their interests in a transaction if a seller, lender, real estate agent, mortgage broker, or other person having any interest in the transaction referred the buyer to our office:

1. Right to Independent Representation: You have the right to choose your own attorney to represent you throughout the transaction regardless of any preference a seller, lender, real estate agent, broker, or other person may have.
2. Disclosure of Potential Conflict: The fact that you have been referred to an attorney by a seller, lender, real estate agent, mortgage broker, or other person may create a conflict of interest and could adversely affect the exercise of the attorney’s professional judgment on your behalf in a case of a dispute between the parties.
3. Dual Representation of Lender: In connection with representing you in this transaction, the attorney will also be representing your mortgage lender to the extent that the attorney will certify to the lender that its mortgage will be a first lien on your property. It is likely that the attorney has represented the lender in that respect in other residential real estate transactions in the past. Attorney does not represent any real estate broker or agent in connection with this particular transaction. However, one of the agents or offices involved in this transaction may have referred attorney business in the past.

Photo Identification: Pursuant to the U.S. Patriot Act, mortgage lenders are required to ask for photo identification prior to opening new accounts so please have your driver’s license, passport, military identification, or some other form of government-issued photo identification with you.

Funds Due at Closing: Our office accepts payment in the following forms:

• Cash – Up to $500.00
• Personal Check – Up to $5,000.00
• Bank Check (Certified Check / Cashier’s Check) – Over $5,000.00
• Wire Transfer – Wire instructions are available upon request.

We can also accept funds by check drawn on the account of another Delaware attorney (see below for more information if you are using proceeds from the concurrent sale of another property).

Yes, if the amount due is over $5,000.00. Certified funds (bank cashier’s check) or bank wire transfers are mandatory for balances exceeding $5,000.00 to guarantee immediate clearance under Delaware real estate settlement guidelines.

All checks should be made payable to: Cramer & DiMichele, P.A.

If you are obtaining a mortgage to finance the purchase, under federal mortgage guidelines (TRID / CFPB regulations), your mortgage lender is required to provide you with the Closing Disclosure (CD) at least three (3) days prior to closing. The Closing Disclosure will provide you with the amount of funds you will be required to bring to your settlement.

However, please be aware that the final figure for settlement is dependent on information gathered from various outside sources, local county and city/town offices, homeowners associations, oil companies, realtors and mortgage lenders, etc. Unfortunately, there are times when adjustments need to be made to the Closing Disclosure after it has been provided by your lender.

Therefore, you should always bring a personal check with you to settlement in case an adjustment was made to the Closing Disclosure resulting in an increase in the amount due. Please be aware, that in the event the amount of your bank check exceeds the final amount due at closing, our office will issue you an immediate refund check at settlement for the overage.

If you are paying cash (no mortgage financing), our office will contact you as soon as the Settlement Sheet is finalized, or provide an estimated amount by the close of the business day prior to settlement.

The attorney’s office performs a comprehensive suite of essential legal duties on your behalf:

• Contract Review: Examining the terms of the purchase contract to ensure your rights and contingencies are preserved.
• Title Examination: Searching public land records in the county courthouse to confirm marketable, insurable title free of liens, clouds, or judgments.
• Survey Coordination: Ordering and reviewing a boundary plot plan survey when requested or required by your lender.
• Document Preparation: Drafting the Deed, Mortgage, Affidavits, Promissory Notes, and closing conveyancing instruments.
• Title Insurance: Securing title commitments and issuing both Lender's and Owner's Title Insurance policies.
• Closing Execution & Escrow: Conducting the formal closing ceremony, executing mortgage documents, collecting and disbursing funds, recording the deed with the county, and facilitating municipal utility transfers.

A survey is a precise visual diagram and plot plan prepared by a licensed professional land surveyor. It establishes exact property boundaries, lot dimensions, location of structures, easements, rights-of-way, and reveals whether fences, driveways, or buildings encroach across property lines or violate local zoning setback restrictions.

While our office always recommends obtaining a survey for your long-term legal protection, Cramer & DiMichele only requires a survey if specifically mandated by your mortgage lender. If your lender does not require a survey, the choice rests entirely with you.

A title search is an exhaustive forensic examination of county land records, courthouse deed books, mortgage indexes, tax records, and court judgments. The title search confirms legal ownership of the property, identifies existing mortgages that must be satisfied, and discovers any unpaid municipal taxes, sewer liens, mechanics’ liens, or court judgments against the buyer or seller.

Title Insurance protects against hidden title defects that cannot be discovered even through the most thorough courthouse title search. Examples include forged or fraudulent deeds in the chain of title, missing heirs to an estate which previously owned the property, deeds executed by incompetent individuals, or clerical recording errors.

Lender’s Policy: If a mortgage company is involved in your transaction, your lender will require a lender’s policy of title insurance. Our office will issue the policy to your lender after closing. The charge for the lender's policy will appear on your Closing Disclosure as a settlement cost. The lender’s title policy protects only the financial interests of the lender up to the outstanding loan balance.

Owner’s Policy: While the lender’s title policy only protects the lender, it does not protect your equity or legal ownership rights. An owner’s title policy is a separate policy issued to the buyer. It is purchased on the day of settlement for a single one-time fee and protects your ownership rights for as long as you (or your heirs) own the property. Although optional, an owner’s policy is strongly recommended; therefore, it will automatically be provided to you at the time of settlement unless expressly declined in writing.

The allocation of utility transfers is split between our law office and the buyer:

• Property Tax & Sewer: Automatically transferred to the buyer upon public recording of the deed at the county courthouse.
• Water Service: In most cases, our office directly handles the transfer of public water service.
• Municipal Electric: If the property is located within a city or town with a municipal electric utility, our office initiates the transfer.
• Private Electric (e.g. Delmarva Power): In most cases where electric is supplied by a private utility like Delmarva, the buyer is responsible for contacting the company directly.
• Trash Collection: The buyer is responsible for setting up service with private or municipal haulers.
• Cable, Internet & Telephone: The buyer is responsible for establishing individual customer accounts.

The date for your settlement will generally be the closing date specified in your sales contract. The exact time for settlement can be scheduled with our office at any time. You may contact our office directly or coordinate with your real estate agent to notify us of your time preference. We are generally able to honor our buyers’ preferred times.

Our principal office is located in Pike Creek in the Stoney Batter Office Park at 5305 Limestone Road, Suite 200, Wilmington, DE 19808.

However, we handle settlements throughout the entire State of Delaware and can arrange to conduct the closing at the office of your real estate agent, the listing agent, or at a mutually agreeable location closer to the property for the convenience of all parties.

Standard office hours for settlements are from 8:30 AM to 5:00 PM, Monday through Friday. However, we are flexible and routinely schedule closings outside of normal office hours, including early mornings, evenings, and weekends to meet our clients’ needs.

If the property you are selling is also in Delaware: Contact our office with the closing attorney’s contact details. We will arrange to have the proceeds issued to our escrow account via a Delaware attorney trust check or direct bank wire transfer.

If the property you are selling is NOT located in Delaware: The prior transaction is handled by an out-of-state title company or attorney. Under Delaware legal rules, we are not permitted to accept a check from an out-of-state title company or law firm. The proceeds must be transmitted via bank wire transfer. Please provide us with the title company’s contact information, and we will coordinate wiring instructions securely.

Yes, our office can wire net proceeds directly into your personal bank account.

Strict Wire Fraud Defense Protocol: Due to nationwide increases in sophisticated real estate wire fraud schemes, our office will never accept wire instructions via email or telephone.

• In-Person Closings: If attending settlement in person, simply bring your account details (such as a voided check or official bank routing statement) and hand them to our attorney at the closing table.
• Remote Closings: If closing remotely, you must execute the proprietary verification form provided directly by our law firm. For your protection, we cannot accept account details on any other document. Our attorneys will also conduct independent voice telephonic verification before any funds are released.