Step 1: Contract Review and Information Gathering

– Upon receiving the signed contract from the buyers and sellers, the title company starts gathering pertinent information from buyers, sellers, agents, buyer’s Lender, Seller’s Mortgage company, Homeowner’s Association, county, city, and utility companies.  

– The contract is carefully reviewed to understand the terms and conditions, purchase price, financing details, and any contingencies.

– A earnest money deposit made by the buyer and is held by either the agent’s brokerage or the title company. 

Step 2: Title Search and Examination

– The title company orders a comprehensive title search to identify any existing liens, encumbrances, or legal issues associated with the property.

– The title search involves researching public records, including deeds, mortgages, judgments, and tax records, to ensure a clear title can be conveyed to the buyer.

– An experienced title Attorney reviews the search results to assess the property’s ownership history and uncover any potential problems that need to be resolved.

Step 3: Title Insurance and Clearance

– Based on the title examination, the title company determines the insurability of the property.

– If any issues or defects are discovered, the title company works with the necessary parties (e.g., sellers, lenders, attorneys) to resolve them before closing.

– A commitment to issue title is then prepared and sent to the lender (if applicable). 

Step 4: Document Preparation and Closing Coordination

– The title company prepares all the necessary legal documents required for the closing, including the settlement statement, deed, and any additional documents specified by the lender or local regulations.

– The title company coordinates with all parties involved, such as the buyers, sellers, real estate agents, lenders, and attorneys, to schedule the closing date, time, and location.

– Prior to the closing, the buyers and sellers receive a final breakdown of the closing costs and are provided with an opportunity to review and ask questions about the documents.

Step 5: Closing and Settlement

– On the agreed-upon closing date (per contract), all parties involved gather to finalize the transaction.

– The title company facilitates the signing of the necessary documents, ensuring that all legal requirements are met.

– Title insurance policies are issued to both Lender (if applicable) for the Lender’s Title Insurance policy and Buyer (if purchased) for the Owner’s Title Insurance policy. 

– The buyers provide the funds required to complete the purchase, and the seller receives the proceeds from the sale.

– The title company disburses funds to pay off any outstanding mortgages, taxes, or other obligations associated with the property.

– Once all funds are disbursed and all documents are properly executed, the title company records the new deed, Lender’s Mortgage (if applicable), and other relevant documents with the appropriate county or municipal authority.

– The buyers are officially recognized as the new owners of the property, and the transaction is considered closed.