What Happens and When?
In a purchase, after a buyer has been through the challenging process of searching, selecting, and negotiating for their property, in most cases, the seller will select the title company. If you are refinancing a property, then the borrower chooses the title company. Once the title company is chosen, an order is placed for title work and settlement. The buyer, seller or borrower must wonder what happens from that point forward. They should! Title companies do far more than merely appear at a settlement with arms full of papers, a smile, and a checkbook. The following shows the majority of our responsibilities regarding the settlement process:
Prior to Settlement:
- Title order is entered into our Web-based systems.
- Introductory letters asking for critical and pertinent information are sent to all parties.
- Title search on the property is ordered.
- Examination of title is performed identifying any and all items that need to be addressed and/or disclosed to seller(s), buyer(s) and or borrower(s).
- Surveys, if applicable, are ordered by title company.
- Payoffs are obtained for any existing mortgages and/or liens shown as a result of the title search.
- Settlement Statements (HUD-1) and/or closing statements are prepared on behalf of all parties, disclosing all fees charged and funds required to close the transaction.
- Coordinate efforts with the buyer(s)/borrower(s) lender in obtaining all documents needed from lender in order to close the transaction.
- Any title curative/corrective work needed in order to transfer clear and marketable title.
- All Documents required to close the transaction are prepared and presented to all parties for review and execution. In cases where the parties cannot be present for closing, arrangements are made to have the documents sent to the party for execution in another location.
- All closing documents are presented and professionally explained by our closing agents to all parties.
- All closing documents that need to be notarized are notarized by the settlement/closing agent.
- Title company will provide a digital copy of all documents to all parties signed in regards to the transaction.
- The file is audited for accuracy prior to disbursement of any funds. Any discrepancies are discussed with all parties and the title company provides a forum to discuss any solutions, if necessary.
- All funds, once the file is audited, held by the title company will be disbursed according to the settlement statement.
- The lender's executed bank package, if applicable, is put in order as specified by the lender and sent back to the lender according to their instructions.
- Documents that need to be recorded within the County land records are sent to the courthouse for recording in a timely fashion.
- Title insurance policies are prepared for the Owner and for the Lender, if applicable and sent to the appropriate parties.
- All mortgages, and or liens paid off at closing are followed up on to make sure they are satisfied of record.
- Files are digitally stored in our database for the benefit of all parties.