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The Closing Process

Marc Farrugia
Updated

While there are variations to the closing process depending on the type of closing, the standard closing is:

1. Receive approval from the Main Office for all necessary documents. Most approvals are received through NetSuite, but how approvals are received and what documents are necessary will depend on the type of closing:

2. Set the closing date with the prospect.

3. Confirm the closing date with the prospect and communicate what the prospect is expected to bring to the closing.

Note: Required prospect documents depend on state requirements, the type of closing listed above as well as if the sale is cash or financed, but in general they must provide a valid, government-issued photo ID.

4. For most types of closings, you'll go into NetSuite the morning of the closing. Make sure all the charges are correct, the move in date is correct, and the correct incentives are selected, if applicable.

5. Generate leasing paperwork. See Generating Lease Agreements for more information.

6. Create a Welcome Folder before the closing.

7. If applicable, do a walkthrough of the home and the site to ensure it’s move-in ready.

8. Handle the closing.

  • Sign sale and lease documents and addendums.
    • Note: In the event that a property manager is unavailable to sign, a designated sales representative or office coordinator may sign.
    • Note: Most communities use eSign – an electronic closing package signed online and sent to each prospect's individual email. For more information about eSign, see DocuSigning Leases.
  • Collect rent funds and remaining home sale funds.

9. As soon as the Leasing Paperwork is signed and the Actual Move In date has been recorded in NetSuite, the new resident's lease agreement is active. Se e Resident Move Ins at Manufactured Home Communities for more information.

  • When you open the application, you'll now see an associated Lease Agreement where you can begin the move-in process.

10. Upload paperwork signed manually during the closing in NetSuite for the Closing Audit.

  • Paperwork that was electronically signed with DocuSign will be available in NetSuite automatically.

11. If this is a sales closing, send the original closing documents as well as sales funds received to the Closing team at the Main Office within 24 hours of closing . Closing packages should not be held at the property until the end of the month, even if there are multiple closings scheduled throughout the month. It is important to send the closing package in within 24 hours of closing, and not wait to send it in.

  • Note: If the closing is handled on the last day of the month, the closing package must be sent Standard Overnight Delivery the next business day. For more information, see ShipExec (Shipping packages).

12. If necessary, make any corrections needed to the closing package as part of the closing audit. To learn how to make corrections to the closing package, see Closing Audits.

The closing date cannot be set until all necessary approvals are received. If the closing is for a financed sale, the lender must also provide approval before the closing date can be set. For more information about financed sales, see Financed Home Sales. When setting the closing date, keep the following guidelines in mind:

  • The closing date should be set as soon as possible. Work with the property’s Business Development Specialist to ensure that the closing happens efficiently.
  • The type of closing will often determine how quickly the closing date can be set. “Same day” closings are rare, and only possible with certain types of closing.
Certain types of closing, specifically sales closings, have additional guidelines and/or processes. Keep this in mind if the closing is one of the following:
  • Brokered Sales: Brokered sales have additional paperwork, such as the Brokered Closing Statement, that closings cannot be conducted without and the closing date cannot be set without. For more information about brokered sales, see Brokered Home Sales at MH Communities.
     
  • Financed Sales: The closing date cannot be set without approval from the Closing team and the 3 rd party lender. For more information about financed sales, including what counts as a financed sale, see Financed Home Sales.
     
The closing is a vital part of Sun’s business. It’s both a chance to provide excellent customer service and to increase the property’s revenue. The property manager and/or salesperson handling the closing is responsible for ensuring that all the paperwork is completed correctly, and that all conditions or items such as balance due are collected from the prospect.
Best practices for handling all closings include:
  • Conduct the closing in a quiet area such as a sales office, if possible. This will ensure the prospect’s privacy and minimize interruptions.
  • Review key areas in the closing paperwork with the prospect.
  • Ensure that all final conditions or items required are collected from the prospect. Missing items during the closing will lead to the closing audit failing.
  • Check all paperwork once it has been completed and before the prospect leaves the office. Take this time to make sure all signatures have been collected, no spaces are left blank, and all the information is correct.
  • Make any corrections to the paperwork at this time. Do not use WiteOut or other correction fluid. For more information about how to correct paperwork, see Closing Audits.

In addition to the standard closing practices, certain types of closings require additional paperwork, conditions, or items. If the property has questions about what is required for a certain type of closing, contact the property’s Closing Agent using the Regional Support Assignments. Some of the paperwork, conditions, and/or items and their associated closing types are as follows:

  • For Sun inventory homes, both new and used, the keys will be places on a Sun Homes key ring and given to the prospect during the closing.
  • For brokered homes, the seller will bring the keys to the closing to give to the prospect.
  • For retail orders, the new resident will not receive the keys until the Certificate of Occupancy is obtained.
  • Include the original HUD Card with the closing documentation sent to the Closing team at the Main Office. The Main Office will forward the HUD Card to the manufacturer.
  • Keep a copy of the HUD Card in the prospect’s resident file.
  • A Power of Attorney or Appoint of Agent can be used if the prospect is a cash sale. One of the prospects listed on the Purchase Agreement or Offer to Purchase must be present at the closing to personally sign all documents, and sign the title. Documents must be notarized. A prospect using financing cannot use a Power of Attorney or Appointment of Agent.
  • For more information, see Trusts, Wills, and Powers of Attorney Guidelines.
  • Sellers must bring the original title(s) to closing unless the title is being held by a financial institution. For more about brokered sales and titles, see Brokered Home Sales at MH Communities.
     
  • The property manager and/or salesperson prepares the titling documents in most states. In some states property managers are responsible for completing title transfers, and in other states the Titling Team completes the titling process. For more information see Sun Homes Cash Sales - Titling.
  • New residents must complete the New Tenant Utility Transfer Acknowledgement form anytime a Sun inventory home is sold or leased, and anytime a home is moved to a vacant site and transfer utilities to their name the day of the closing.
  • The manager must verify that the new resident(s) provided confirmation and/or account numbers of the transfer of all relevant utilities.

Welcome Folders include useful information for new residents such as emergency contact information, the property's rules, and additional forms that are not part of the primary closing paperwork. The Welcome Folder may be adjusted based on the state, the property, and/or the type of housing or site transaction. See Marketing Materials and Property Forms for information on how to order supplies such as folders.

Standard items to include in a Welcome Folder include, but are not limited to:
  • Online Payments in the Customer Portal
  • Property Map
  • Property Amenities Information
  • Activities Information and Calendar
  • Home Specification Form, if applicable
  • RV Storage Agreement, if applicable
  • Water Billing Process, if applicable
  • Rubbish Removal Process, if applicable
  • U.S Postal Service Process and Key, if applicable
  • Home sale paperwork, if applicable
  • The lease agreement, lease addendums, and rules and regulations of the property can be added if the resident requests them to be printed.
Ensure the resident understands the following, and knows how to access this information:
  • The property's rules and expectations, as well as how rule violations are handled.
  • The monthly date when site rent is due, as well as the due date(s) for all other fees. Other fees may include pet, trash, utilities, etc. Also review late fees and NSF charges.
  • The property's emergency procedures and phone numbers/contact information.
  • The property's expectations for curb appeal and maintaining an attractive home. If applicable, also review expectations about set-up, skirting, steps, etc.
  • The Customer Portal, if applicable. Provide information on sign up, the services available, like paying rent and submitting service requests. See the Customer Portal for more information.
     

Closing documents are legal documents and can be used in court proceedings. For this reason, the documents must be accurate and filled out completely. If an incorrect document is submitted to the Closing team, they will request that the document be corrected. The audit will remain open until the correct paperwork and/or sales documents are received and verified by the Closing team. Corrections to lease and/or sales documents are expected to be uploaded into the Closing Audit in NetSuite in a timely manner. For more information about the closing audit and how to upload corrected documents, see Closing Audits.

Nominal fees apply to sales and leasing transactions, including financed sales, cash sales, brokered sales, RV/Park Model sales, and home rentals. This fee helps offset the expenses Sun incurs for items including but not limited to licensing, administrative expenses, courier fees, document preparation, and other incidental items.

  • $599 must be charged for all Sun Homes inventory regardless of the type of transaction.
  • $399 must be charged for all brokered homes regardless of the type of transaction. The property must contact the Closing team or Concierge to update the closing fee for all brokered sales prior to printing documents.
  • $149 closing fee is to be charged for all Home Rental transactions.

This fee must be properly disclosed in all advertisements and purchase agreements. Contact the property’s Business Development Specialist or Closing Agent with any questions.

Utilize the Closing Checklist to help keep yourself on track and organized.

Housewarming gifts are an easy way to make a lasting impression on our newest Sun residents.  It's a great way to say "Thank You" and provide residents with something useful and thoughtful.  Sun encourages all US sales people / community managers to keep a small stock of items to gift to our newest homeowners.  Residents should receive their housewarming gift no later than a month after the sale is complete or the resident moves in.  

Some housewarming gift options are listed below. Communities may use any of these ideas, and community managers should work with their RVP to determine what gift option(s) would work best for residents, what the community budget for the gifts will be, and the amount of gifts to keep on hand. 

  • Instant Coffee 
  • Coffee Cups  
  • Cup Cozy 
  • Welcome Home Plate for the wall 
  • Kitchen Towels 
  • Other items 


 




SunSource Knowledge Base Article: https://sunsource.suninc.com//Interact/Pages/Content/Document.aspx?id=3626

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