Title abstract
Consists of researching the title to the property through a title abstract, which provides a history of the property and its ownership. This helps make sure there are no discrepancies with the current title that may affect new ownership.
Real Estate Survey
Is a report is usually requested by lenders, to confirm property location, improvements relative to the property and drawings of the property as well as a detailed opinion and concerns the surveyor may have. If any issues arise on the survey, all parties involved in the transaction should be notified immediately.
Real estate property taxes
Verify with the local or state taxing authority that the property taxes have been paid. Similarly, we check with the Water Company and Homeowners Association to confirm that all payments are current. On the HUD-1 Settlement statement, we will prorate the amounts based on the billing period and the settlement date.
Title insurance policy
Two types of title insurance:
- Lender’s title Insurance: which is required by the mortgage company, and protects the lender’s investment in the property.
- Owner’s title insurance: which may be purchased at settlement for the benefit of the new owner. It is strongly recommended that all buyers receive an owner’s title insurance policy to protect them against any unforeseen claims, hidden risks, or fraud against the property. The insurance policy provides protection from financial loss as well as payment of legal costs necessary to clear such claims.
Loan documents for closing
The HUD-1 Settlement Statement is a settlement statement is one of the most important documents to sign because it details all of the costs associated with the purchase and sale of the property. We also prepare the deed and other documents necessary to comply with state and federal laws.
Closing
At closing, all documents are explained to all parties prior to signing. Settlement lasts approximately one hour. After closing, we disburse all the monies collected at settlement and pay vendors. We also pay off and release the existing mortgages on the property and prepare the loan documents to be returned to the lender.
Documents recorded in courthouse
The title company is responsible for making sure all documents are properly recorded in the courthouse, such as the new deed and mortgage.
Real Estate Escrow
Escrow of in other words, down payment is the money held in trust by a third party such as a title company to be dispersed at the time of closing to facilitate a real estate transaction.
