Crowne Communities recognizes that timing is vitally important in planning your move and locking your loan. We can specify an estimated delivery date when construction reaches a point where weather and other factors are less likely to impact completion of your home. This occurs approximately twenty days prior to completion. Until then, many factors can stretch the schedule.

Weather can delay getting the foundation in and can also affect framing, roofing, and exterior finish. Material shortages and labor strikes may affect the construction schedule. Also, if you are delayed in responding to a request by your lender, this can cause a delay. Changes submitted after the original purchase agreement has been completed will add days to the schedule.

Date of Closing

The closing will usually take place shortly after or before your orientation. We will set the closing appointment with you by telephone at least two days prior to the appointment. Typically, the closing process takes from forty-five minutes to an hour.

Location of Closing

The closing on your new home typically takes place at the title company. The exact location will be confirmed with you at the time the appointment is set.

Closing Documents

At closing, the documents necessary to convey your new home to you and to close the loan from your lender will be executed and delivered. In addition to these standard items, the lender, the Title Company, and Crowne Communities may require other documents to be signed.

Grant Deed

The Grant Deed conveys the home and lot to you, subject only to permitted exceptions.

Title Commitment

At closing, the title company will deliver to you a standard form CLTA owner’s title insurance commitment, committing to insure merchantable title of your home to you in the amount of the purchase price, subject to the permitted title exceptions that may be described in the purchase agreement. Review the title commitment carefully and if you have any questions, ask your project manager. Within sixty (60) days after the closing, the title company will deliver to you (by mail) a standard CLTA owner’s title insurance policy, insuring you title to your home in accordance with the commitment you will already have received. The title insurance policy should be kept with your other valuable closing papers.

Promissory Note

The Promissory Note is from you, payable to the lender in the principal amount of the loan, plus interest. In the event you have chosen to have an impound account for the payment of your property taxes and insurance, then one twelfth of your annual taxes and insurance will be added to these items to determine the amount of your monthly payment.

Deed of Trust

This encumbers your home as security for repayment of the Promissory Note.

Closing Expenses

Certain customary items in connection with the property will be prorated to reflect the respective periods that you and Crowne Communities own the property, for example, taxes.

You will be charged for such items as prepaid expenses, reserves required by your lender and homeowner’s association dues if applicable. These will be prorated to the date of closing.

Proration’s of general real property taxes and assessments will be based on the current year’s taxes and assessments. If they are not yet available, on the taxes and assessments for the prior year. All adjustments and proration’s at closing will be final. As stated in your purchase agreement, you will receive one (1) supplemental tax bill several weeks or months after you move in. This bill is the buyer’s responsibility to pay and occurs only once.

“The Final Number”

The final cost figure is usually available only very near to the actual closing. Although a reasonably close estimate may be determined prior to the date of closing, several of the items included in the final total are subject to last minute adjustments. This is the result of many factors over which the title company has little or no control. This is in reference to varying lender pre-paid interest costs, discount points, etc. as well as property tax proration figures, any change orders to construction, etc.

Preparation

You will need to bring a cahiers check to the closing table. In your planning, be sure to allow time to arrange for and obtain these funds. In addition, please keep the following items in mind.

Documents

The Real Estate Settlement Protection Act (RESPA) provides you with many protections. Under this law you can request copies of the documents you will be signing at the closing prior to the appointment. Although these documents are not negotiable and all of our home buyers have signed them, you should read them before the closing.

Insurance

You will need to obtain and present proof of a homeowner’s policy from your insurance company. Your insurance agent should know exactly what is needed. We suggest you arrange for this no later than three weeks prior to the expected closing date.

Crowne Communities or Mortgage Issues

The title company is not authorized to negotiate or make representations on behalf of any of the parties involved in the closing. Therefore, please discuss any questions, agreements, or other details directly with your Community Sales Manager or your lender in advance of the closing.

Utilities

You will need to notify all applicable utility companies of your move so that service is provided in your name. We suggest that you contact these companies well ahead of time to avoid any interruption in service. Utility company phone numbers can be provided to you by the Community Sales Manager upon request so as to assist you in making these arrangements.

IMPORTANT:

Power & Gas Service

You will have electric power at the close of escrow. Gas service is not provided until the house has passed the FINAL inspection with the building department. The service connection can only be scheduled after the final inspection documentation has been forwarded by the building department to PG&E. We will advise you once the inspection has been completed. Depending on move in dates and close of escrow, there could occasionally be a delay in obtaining gas service the same day you receive your keys. Your Community Sales Manager can advise you of any delays in gas service, upon request.