Every week, we ask a Miami real estate professional for their thoughts on the top three stories from the week before. This week, we spoke with Alejandro Goldemberg, CEO and founder of Stripey Development, and Martin Elortegui, director of development for the company.
Miami Agent (MA): What is your biggest concern with the new RESPA-TILA changes approaching? Are you at all worried about the switch?
Alejandro Glodemberg/ Martin Elortegui (AG/ME): We don’t think it will affect our projects since they’re smaller and most of our contracts are to cash buyers. For buyers seeking financing, we feel that these changes will be beneficial since they will receive the information well in advance. Stripey Development does not expect big changes or issues with cash transaction closings but can definitely see where delays may be possible in transactions where a lender is involved. However, any delays should be minimal and not affect the project as a whole.
MA: With the Closing Disclosure, lenders need finalized charges to present to their clients three days prior to closing. With this new timeline, are you concerned about having to finalize contract terms even before that three day period?
AG/ME: Not in our specific situation. We will manage the closing information with prudent time to meet the new RESPA requirements, and don’t expect to encounter any major issues.
MA: What are the major carrying costs of having a fully built home on your books for a few extra days?
AG/ME: In our case, the carrying costs will not be an issue in respect to the new RESPA changes. The only time we’ll feel significant financial repercussions is if a buyer fails to close.
MA: Are you fully prepared for the upcoming changes?
AG/ME: Our title/closing company will definitely be prepared. At Stripey Development, we are highly experienced at completing and closing projects so we are confident that we will be ready to manage these new changes without any problems.