Requirements for P&S Contract

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  • #71288
    RAnthony
    Member

    In the next couple of days we are looking to have a P&S contract. We plan to do new construction.
    While reading the workbook I noticed that NACA strongly encourages you to include the requirements and recommendations as described below in your P&S Contract.

    • Include the following statements:
    – “Settlement agent must be an approved NACA Settlement Agent.”
    – “Closing will take place in the NACA office.”

    The part that concerns me is “Closing will take place in the NACA office.”
    A few questions:
    1. I understand that it is strongly encouraged to have the language in the P&S but is it a requirement?
    2. Our Housing Counselor is in one state an our Mortgage Counselor is out of another state. The state we live in, our NACA office is about 1.5 hours away, and the state for the office of our Mortgage Counselor is about 3 hours away. Would we close in the state our file is in or the state of the Mortgage Counselor?
    3. Is there an option for remote closing?
    4. The builder usually does closing near where we currently live and plan to build. What happens if the builder does not agree to close at the NACA office?

    Thanks in advance!

    #71328
    TTrumble
    Member

    Hello RAnthony,

    Your closing will almost certainly take place in the closer office. We typically consider a two hour drive to be the point at which we will start to consider a remote closing.

    Unless the builder wants to pick up the tab for the closing costs instead of BOA, he’ll agree to close at the NACA office. (You might want to consider offering to pick up the builder’s rep and have him or her ride along with you to the closing, and then spring for lunch afterward just to sweeten the deal and make the trip less of a chore for the builder. Kind of a “working day off” with a nice ride, a nice lunch and only one item on his/her agenda for the day.)

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #71346
    RAnthony
    Member

    Thanks @ttrumble! I attended the NACA post qualification workshop on Wednesday and received a different response. The rep informed us that the seller does not have to close at the NACA office and that I only have to close at the NACA office. Now I am confused.

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