After a buyer has made an offer on a home and the seller has signed the paperwork accepting that offer, then the parties have what is called a ratified contract. This is where the settlement, which is also known as closing, process really begins. The settlement process involves a number of steps, in which the title company you choose is a key player. This process is illustrated below.
1.Title Abstract And Location Survey
Once the title order is placed with a title company, a title abstract is ordered. Location surveys are also often ordered when they are required.
2. Title Insurance
Once all of the relevant information regarding the property has been reviewed, and any obvious defects have been fixed, the title company prepares title insurance policies. This protects both the buyer and the buyer’s lender from unexpected problems in the long run.
3. The Title Company Plays An Important Part
The title company coordinates between all of the parties involved in the settlement process. This involves the borrower/purchaser, the lender, and the realtor or builders involved in the transaction.
4. Pertinent Taxes And Figures
The title company obtains mortgage payoff amounts. They also obtain all pertinent tax, water, and homeowners association figures.
5. Preparation Of Important Documents
The title company prepares a number of documents important to the successful completion of this process. These include the title insurance commitment, the deed, the settlement sheet, and in many cases, loan documents.
6. The Closing
The title company conducts the closing. They are responsible for collecting and disbursing all funds related to the transaction to the appropriate parties. They also record all necessary documents. These include deeds, mortgages and mortgage releases in the appropriate jurisdictions.
7. The Final Policy is Issued
Once all documents have been recorded appropriately in the county, a final title policy is issued and the settlement process is complete.
About Colony Title Associates:
Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings in Washington DC and the Delmarva areas every year. The founder Tee Tillman has over 23 years of experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the Baltimore area. If you have any questions concerning what Baltimore title insurance protects you from, feel free to contact us at 410 884-1160 or visit ColonyTitle.com today!