It can seem like the documents you need to review and sign at closing never end. From real estate transfer documents to loan documents, there are a lot of pieces of paper that demand your attention before you can officially own your home. We’ve talked about a number of them in our recent blogs, and this week we’re going to discuss a few more. In this blog, learn about the home title documents you’ll receive at closing.
Home Title Documents
After the real estate transfer and home loan documents are taken care of, it’s time to review and sign the home title documents. You’re almost finished putting pen to paper, so hang in there!
Title Insurance Commitment
The main title document is known as the title insurance commitment, or just “the Commitment.” The commitment shows the party who owns the house, as well as any liens or clouds on the title.
If you have an attorney, he or she will review it to make sure the Commitment is as it was promised in the contract and in accordance with local laws. If you use an escrow company, the escrow company will review it and make sure it meets conditions put forth in the escrow instructions.
Ideally, any issues with the title will have been dealt with beforehand. If an issue is found at closing, it will almost certainly delay or halt the process until the seller makes the necessary fix (pays off a lein, etc.). This is why if neither the buyer nor seller has an attorney, it’s important that the title company is contacted well in advance to ensure any potential situations are dealt with before closing.
Other Closing Documents
Other closing documents presented by the title company include:
- ALTA statement – a one page affidavit, similar to the seller’s affidavit of title.
- Judgment affidavit – recent judgments, divorces, or bankruptcies are listed here.
- Compliance agreement – here, you agree to cooperate with the title company to fix any closing mistakes if they are found.
- Disbursement agreement – allows the title company to disburse loan proceeds.
Real Estate Closing Services from Colony Title Associates
Colony Title has been in business since 1995 and handles more than 2,000 real estate closings per year. If you have any questions or would like to speak to a representative about closing, please give us a call at 410-884-1160 or visit our website for more information.