The Basic Steps Of Closing
- Open Order
A sales contract is signed by the buyer and seller and delivered to the closing agent, usually with a deposit of an earnest money check. Escrow is opened and the closing agent starts the closing process by opening a file and ordering a title search from the abstractor. If necessary, tax information, loan payoffs, survey, homeowner/maintenance fees, inspection reports, hazard and other insurances as well as legal documents are ordered.
- Title Search and Examination
An abstractor will perform a search of the public records of the County. Records searched include deeds, mortgages, paving assessments, liens, probate records, divorce settlements and other documents affecting title to property. Verification of the legal owner is made and any encumbrances on the property are revealed. Upon completion of the search and examination, a title commitment/preliminary report is prepared, reviewed, and sent to interested parties. At this time, buyer and seller should review the title commitment (Schedule C) to determine if there are any curative matters that must be cleared prior to closing.
- Document Preparation and/or Request to Produce
The closing agent reviews the new lender’s instructions/requirements, instructions from other parties to the transaction, and legal and loan documents. At that time the closing agent will assembles charges, prepare a closing statement, and schedule the closing.
- Settlement/Closing the Transaction
The closing agent oversees the closing of the transaction. Seller will sign a deed and other documents required by the title company. Buyer will sign loan documents, if necessary, and other documents required by the title company.
After receipt of all original signed documents, the closing agent will fund the transaction. The closing agent will forward payment to any prior lender, pay all parties who performed services in connection with your closing, record the transaction documents, and prepare the title insurance policies. The title insurance policies will automatically be sent to the new lender and to the buyer. This concludes the title company’s assistance with the real estate transaction.