You’ve just purchased a house, and now you must begin the settlement process. But what does this mean? Property settlement is a legal process facilitated by your legal and financial representatives and those of the seller. During this process, the ownership passes from the seller to you, and you pay the balance of the sale price. The seller usually sets the settlement date in the contract of sale, and as a general rule, settlement periods are about 30 to 90 days. If you want to know what happens during the settlement process with Colony Title Associates, read on for a brief overview to prepare you for the process.
The Settlement Process with Colony Title Associates
When going through the settlement process with Colony Title, the following steps will be taken:
- Once the title order is placed with any of our title companies, we order a title abstract along with a location survey if required.
- The title company coordinates between those involved in the transaction. This includes the borrower/purchaser, the lender and realtor or builders.
- The Title Company obtains mortgage payoff amounts in addition to the pertinent tax, water, and homeowners association figures.
- Colony Title prepares forms including the title insurance commitment, the deed, and in many cases, loan documents. We also include the settlement sheet, which is explained further below.
- We conduct the closing process, collect and disburse all funds to the appropriate parties, and record all necessary documents, including deeds, mortgages, and mortgage releases in the applicable jurisdictions.
- Once all relevant documents have been recorded in the county of residence, a final title policy is issued.
The Settlement Sheet
During the settlement process, you will receive the Settlement Statement or HUD-1. The HUD-1 reflects all of the costs associated with a home purchase or refinance. You may download a sample settlement sheet on the Colony Title website. The sections you will find on the statement are as follows:
- Summary of Borrower’s Transaction
- Amounts Paid By or In Behalf of Borrower (Credits to Buyer)
- Summary of Seller’s Transaction
- Settlement Charges
- Items Required by Lender to Be Paid in Advance
- Reserves Deposited with Lender
- Title Charges
- Government Recording and Transfer Charges
- Additional Settlement Charges
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.