Courthouse Closings and the Regional Sales Contract

Now that it's November it's time to start focusing hard on the upcoming Holiday Season (although Retailers have been trying to get us to think about it since August). In addition to working on getting your holiday cards out, planning your holiday party schedule, and shopping, real estate agents should take note of the schedule of courthouse closings. Failing to do so could cost your Sellers hundreds and possibly thousands of dollars!

Why?

Remember, the Regional Sales Contract requires the Purchaser to deliver the required funds on the Settlement Date and the Seller to deliver possession of the property (including keys) at settlement. Virginia's Wet Settlement Act, however, requires the Settlement Agent to record the Deed and any Deeds of Trust prior to disbursing proceeds, including the Seller's proceeds and funds to payoff the Seller's mortgage.

When the Courthouse is closed, disbursements are necessarily delayed. For instance, if you were to settle on Friday afternoon on December 21 in Loudoun County, your seller would have to give over the keys but they wouldn't receive their funds and they would have to keep paying their mortgage interest until Thursday, December 27th! In all Northern Virginia localities the Grantor's Tax will be going up on January 1, 2008 as well. If you settle on and $800,000.00 home Friday, December 28th, your Deed won't be recorded until January 2, 2008, and your Seller will pay $4000.00 in Grantor's tax instead of $800.00.

What can be done to avoid this?

• Check the Settlement Date!
• Be aware that the Settlement Company has two business days after the scheduled closing to record.
• Talk to the Settlement Agent to see if they can do better.
• Be very wary of a Purchaser's promise to settle early in the morning to allow for same day recordation. As mentioned above, the Purchaser won't be in default if the funds arrive any time on the Settlement Date.
• Remind the Purchaser of their duty to provide cashier's checks or bank wired funds. Encourage them to take care of this the day before settlement, rather than the day of. Any delay will slow down the recordation and disbrusement process.

Below is the current closing schedule for Northern Virginia Jurisdictions. Keep in mind the schedules are subject to change. Where hyperlinked, you can click to go to the official site of the Clerk's office.

Alexandria (City): November 22, 23; December 24, 25; January 1, 18, and 21

Arlington County: November 22, 23; December 24, 25, 31; January 1, 18, and 21

Fairfax County: November 22, 23; December 24, 25, 31; January 1, 18, and 21

Loudoun County: November 22, 23; December 24, 25, 26; January 1, 18, and 21

Prince William County: November 22, 23; December 24, 25; January 1, 18, and 21


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