10. Before you sign that mortgage (trust deed and note in CA), wear your thinking cap and have a large magnifying glass at the ready. Scour the terms of the trust deed and note and ask as many questions as possible. Do not worry about the time. It is also prudent to have a very knowledgeable friend or relative (CPA?) or attorney chained to your ankle or even take your docs in advance of closing to one for your unanswered questions. If you do this, bring these same docs to closing and compare them word-for-word to the docs you are asked to sign.
Don’t expect your escrow officer or anyone else present at closing who stands to make a commission from your sale to give you straight answers to your questions.
Do not pass go or collect $200 (or the keys) until you understand EVERYTHING that you are signing!
Note: A move is underway in the CA DRE to reinstate its Code of Ethics (under the CA Business and Professions Code), repealed in 1996.
This would go a long way towards hammering it into licensees that they could be in violation of the law for failure to disclose to client-buyers all pertinent facts known about a property or mortgage. But there were so many bad apples and/or ignoramuses licensed after the law’s repeal that it could be awhile before they let their licenses expire because they feel its too hard for them to conduct biz in such a “transparent” environment.
