Frequently Asked Questions
for USDA-owned closings.

The buyer must deliver the Earnest Money Deposit (“EMD”) to the designated title company, escrow agent, or closing attorney within 24 hours after execution of the purchase contract. Once the fully executed contract is distributed, the closing provider will be notified that the EMD is due.

The EMD may be delivered by personal or business check, money order, cashier’s check, or wire transfer, subject to the closing provider’s escrow policies and applicable law.

Please provide JRE Closings with written confirmation that the EMD has been received and deposited or is being held in escrow. A copy of the receipt, deposit confirmation, wire confirmation, or other evidence of payment should also be provided.

If the EMD has not been received by the fifth business day after contract execution, the Seller may elect to declare the contract void and remove the buyer from the transaction. If there is any anticipated delay or issue with delivery of the EMD, please notify JRE Closings immediately.

The Seller will convey title by Quitclaim Deed (“QCD”) only, except where the applicable jurisdiction uses a substantially equivalent deed form to accomplish the same limited conveyance. This requirement is disclosed in the USDA purchase contract, auction addendum, and auction materials.

No. The Seller will not execute a warranty deed, special warranty deed, grant deed, or other alternative conveyance document in lieu of the required Quitclaim Deed.

In Texas, the comparable conveyance document may be identified as a Deed Without Warranty. The Seller’s required form of conveyance remains limited in nature and will not include warranties of title. Title companies should address any underwriting concerns through the appropriate exception, endorsement, or underwriting review.

The buyer and lender should confirm early in the transaction that the lender will accept the required deed type. In some cases, a Quitclaim Deed with Vendor’s Lien may be acceptable. Any lender-specific deed, vesting, or title-insurance requirements should be identified as early as possible.

The Seller is disposing of a previously foreclosed property and has not occupied the property. The Seller generally does not possess prior abstracts, continuation certificates, or historical abstract documentation. If an abstract is required under local practice or by the title insurer, the closing provider will need to obtain, update, or prepare the abstract as necessary.

No. The Seller does not have access to prior abstracts or related historical records.

Yes. Obtaining, updating, or rebuilding an abstract may require additional time. Please notify JRE Closings promptly if an abstract requirement may affect the scheduled closing date so an extension can be evaluated, if necessary.

Generally, no. The Seller has not occupied the property and may not have HOA contact information, governing documents, account statements, resale certificates, estoppel certificates, or other association records.

The closing provider, buyer, buyer’s agent, or other appropriate party should obtain necessary HOA information directly from the association, management company, or other available local sources. Please notify JRE Closings promptly if an HOA matter may delay closing or require Seller review.

The Seller is responsible for delinquent real property taxes, subject to receipt of sufficient supporting documentation and Seller approval.

Please provide current tax certifications, tax statements, payoff information, or other reliable documentation reflecting the amount due and any applicable deadlines.

Current-year real property taxes will be prorated through the closing date in accordance with the purchase contract and applicable local practice.

Notify JRE Closings immediately and provide all available tax-sale notices, redemption statements, payoff demands, deadlines, and supporting documentation. These matters may require expedited review.

Notify JRE Closings immediately and provide the title commitment, title exception, lien instrument, payoff demand, and any relevant deadline. Examples may include UCC filings associated with solar equipment, municipal liens, code-enforcement liens, utility liens, state or local governmental liens, or other matters that may remain enforceable after foreclosure.

No. No lien payoff, title-curative expense, settlement charge, or other Seller-side charge may be added without prior written approval from JRE Closings.

Send JRE Closings the title commitment, relevant exception or requirement, supporting documents, and a concise explanation of the issue. JRE Closings will coordinate review with the appropriate Seller representative.

Please use the settlement statement customarily required in the jurisdiction and for the transaction type, including an ALTA Settlement Statement, HUD-1, Closing Disclosure (“CD”), or other approved state-specific form.

Unless otherwise approved in writing, Seller proceeds may be used only for:

• Listing agent commission
• Delinquent and prorated real property taxes
• Management Fee

No other charge may be deducted from Seller proceeds without prior written approval from JRE Closings.

The buyer is responsible for all closing costs except the Seller-paid items expressly identified above. The JRE Closing Fee and Buyer’s Premium must be reflected on the buyer’s side of the settlement statement and paid by the buyer at closing.

The full gross listing agent commission must be shown on the settlement statement. The Tech Fee and Admin Fee must be deducted from the listing agent’s commission and clearly described in the statement or settlement notes.

The Tech Fee is $250.00 and is deducted from the listing agent’s gross commission.

The Admin Fee is 35% of the gross listing agent commission, calculated before deduction of the Tech Fee.

Gross Listing Agent Commission

$2,500.00

Admin Fee

$875.00

Tech Fee

$250.00

Net Commission to Listing Agent

$1,375.00

The settlement statement should reflect the gross commission and clearly identify the Admin Fee and Tech Fee deductions. These fees are payable to Dawson Management.

The Management Fee is $5,100.00 and must be paid from Seller proceeds.

The complete deed package must be submitted to JRE Closings at least four business days before the scheduled closing date. This timeframe is necessary for Seller review, execution, notarization, and return.

The closing firm is responsible for preparing the complete deed package. The Seller will not prepare, draft, or assemble the deed package. This remains the closing provider’s responsibility regardless of any general deed-package reference in the purchase contract.

The closing firm should prepare the required documents in accordance with applicable state or territorial law, local recording requirements, the title insurer’s requirements, and the transaction-specific closing instructions.

Yes. JRE Closings maintains examples of deed packages for multiple states and jurisdictions, including Puerto Rico. Sample forms are available upon request and should be used as a reference only; the closing provider remains responsible for ensuring that the final documents comply with local law, recording requirements, and title-insurance requirements.

There may be several authorized individuals who can sign on behalf of the Seller. The signer’s name may be left blank unless otherwise instructed. The signer’s title should be listed as Asset Manager. The deed will generally be executed by an authorized representative in Texas.

United States of America Acting Through the Rural Housing Service or Successor Agency, United States Department of Agriculture

By: Dawson’s Realty & Mortgages, Inc., a Georgia corporation, dba Dawson’s Management, USDA’s duly authorized property management contractor pursuant to a delegation of authority found within Rural Development regulations 41 CFR 102-75.1090.

The closing firm must include a prepaid priority return shipping label with the deed package so the original notarized documents can be returned after execution. Please use a trackable carrier and provide the return label with the package.

No. All Seller checks must be payable and sent to Dawson Management. No funds should be sent directly to USDA.

Seller proceeds and all Dawson Management-related payments must be included in the same envelope and shipped to the designated address in Georgia. This includes, as applicable, Seller proceeds, Management Fees, Tech Fees, and Admin Fees.

Yes. Tracking information for Seller payments must be included in the final closing package.

A complete digital final closing package in PDF format must be delivered within 24 hours after closing. If closing occurs on the last day of the month, the final closing package must be delivered the same day.

The final closing package should include:

• Final title commitment or title policy, if available
• Executed settlement statement, ALTA, HUD-1, CD, or other applicable closing statement
• Copies of all checks and the check or disbursement ledger
• Hold harmless agreement, if applicable
• Recorded deed, if available
• Shipping label and tracking information for Seller proceeds
• Any other final documents required by the closing instructions

Yes. JRE Closings maintains examples of closing statements for various transaction types and jurisdictions. Examples are available upon request.

Yes. After funding, JRE Closings must receive a copy of the recorded deed.

Please provide the recorded deed as soon as it becomes available. Electronic recording and electronic delivery are preferred when available.

If the deed cannot be recorded and provided within two business days after funding, please notify JRE Closings with the reason for the delay and the anticipated recording date.