Buying a house is usually one of the largest transactions of your life. Without proper advice and guidance from an experienced professional, the process can be overwhelming. A little help can go a long way towards easing the stress of a home purchase. Here are the basics of what you can expect once you have finally found the home of your choice.
Starting the process: If a real estate agent is involved, he or she will prepare the contract. If not, I recommend that an attorney prepare the contract to make sure it follows statutory requirements and that your interests are adequately protected. The contract is then signed by the buyer and seller and delivered to the title company, usually with a deposit check. The title company begins to process the file. Tax information, loan payoffs, survey (if necessary), homeowner/maintenance fees, inspections/reports, and hazard and other insurances, as well as legal papers are ordered.
Title search and examination: This is a search made of the public records, including deeds, mortgages, paving assessments, liens, wills, divorce settlements, and other documents affecting title to the property. A title examination is the examination of the documents found during the title search that affect the title to the property. This is when verification of the legal owner is made and the debts owed against the property are determined. Upon completion of the search and examination, a title commitment/preliminary report is prepared and reviewed, and it is sent out to interested parties. This includes buyers, attorneys, lenders, and agents, if requested. Once the title company determines that title is clear, closing can be scheduled.
Document preparation and lender coordination: Once the closing has been scheduled with all the parties, the buyer’s lender will provide closing instructions to the title company. The closing agent reviews the lender’s instructions/requirements, reviews instructions from other parties to the transaction, reviews legal and loan documents, assembles charges, and prepares closing statements and documents for the closing.
Settlement/closing the transaction: The escrow/settlement agent oversees closing of the transaction. The seller signs the deed and closing affidavit. The buyer signs the mortgage documents. The old loan is paid off. Seller, real estate professionals, attorneys, and other parties present at the closing of the transaction are paid. Keys are given over. Mazal Tov!
Post-closing: After the signing has been completed, the escrow/settlement agent will forward payment to any prior lender, and pay all parties who performed services in connection with your closing (if they have not been paid). The transaction documents are recorded in the county in which the property is located. Title insurance policies are prepared and sent to the new lender and to the buyer. This all happens without any further actions by the buyer or seller.
The closing of your home should be a pleasant experience and does not need to be overly stressful. By preparing properly and getting the proper guidance it will be.
To contact Commerce Title Company and Eli Newman, please call 410-653-4004
