Certainly, the most critical part of the transaction is the contract. Every part of this legal agreement must be correct for it to be binding.
And, if there is no realtor involved in the transaction, that can make the process a bit trickier.
That’s why title company responsibilities require a range of knowledge to meet the ever-changing demands of buying a home. First of all, we must make sure the contract is in order.
Then we have a five-step process to closing on your new home
How Does A Title Company Ensure Your Contract is Correct?
It’s the title company’s responsibility to go over the ratified contract and ensure all details are right. Here are just some of the title company contract responsibilities:
- Agreed-upon price of the home is correct
- Description of the property-Has every detail been included?
- Identification of the parties—Are the names written as their legal signatures?
- Contingencies—Have they been met so the transaction can close?
- Specifics about appliances and fixtures—What’s included and what isn’t
- The deposit amount—Confirm that it’s in escrow
- Closing costs—Who’s responsible for what? Has the money been allocated?
- Closing date—Making sure all parties are aware of the date
- Obtaining signature(s) for each party
- Terms of possession—Have both parties met their obligations?
- Mortgage application—Has the buyer applied for a mortgage? If so, has the buyer obtained pre-approval, then final approval?
Once we make sure that all aspects of the contract have been met, we then begin a five-step process to closing on your home. Here’s how it works.
A survey of the property is sometimes required. If there are any property line issues, it’s up to us to advise all parties involved.
There can be no outstanding property taxes on the property. It’s up to the title company to verify that the real estate taxes have been paid. If the property is located in a homeowners’ association, we will confirm that those payments are current.
If there is a homeowner’s association (HOA) fee, it will be prorated on the Settlement Statement (HUD), based on billing cycles and date of settlement.
4-Title Insurance Policies
In order for the buyer to obtain a mortgage loan from the lender, the lender requires that the buyer get title insurance to protect the lender.
We prepare that title insurance commitment letter for the lender. This is also part of the closing costs and is paid by the buyer.
There is a second title insurance policy called Owner’s Title, which may be purchased at settlement, and has a one-time fee. This insurance policy protects the buyer against anything that was not found in the title search. For example, forgery, unforeseen claims, and hidden risks, to name a few.
The optional Owner’s Title insurance policy protects you against financial loss and payment of legal fees should any of these issues arise.
We highly recommend that buyers purchase Owner’s Title insurance for their own protection. Banks want to protect their investment, so should you!
Once you’ve decided on your title insurance policy, Lilly Title & Settlement prepares the title documents to comply with State and Federal regulations.
5-More Title Company Responsibilities: Loan Documents for Settlement
Following that, we prepare the Settlement Statement. This document compiles all the fees and costs involved with buying a property.
At closing, all Settlement documents are signed transferring ownership. We then promptly record the required documents such as the Deed and Deed of Trust, at the appropriate courthouse.
Following the recording, the monies collected at closing to pay off venders and any existing liens are disbursed.
Whew! That’s a list, isn’t it? Buying a home is an intricate legal process. When choosing a title and settlement company, you want to be sure that your real estate transaction is in competent hands.
Always check reviews for the company and ask friends and family about their experience in working with the company. You want to make sure the process goes as smoothly as possible.
When you’re ready to close on your new home, turn to the pros at Lilly Title & Settlement. We’ll carefully and thoroughly prepare your closing documents while keeping you informed every step of the way!