A title insurance company’s closing process includes several steps to give legal possession of a home. The goal is to provide the buyer with a free and clear title. Hopefully, the homebuyers have at least a basic understanding of what goes into the closing process. If they know what to expect, it may go much smoother. A closing process that is simple and transparent is best. Here are the main steps involved in the closing process.
The Real Estate Contract Singing
Both the buyer and seller must sign a real estate agreement. When they come to an agreement, the real estate contract must be provided to them to begin the closing process. It is important that clients do thorough research on the home and its neighborhood to understand a fair price for the home. It is in the hands of the title agent to then open an escrow account and hold the deposit and real estate contract until the closing has been completed. This protects both client parties and the terms of the contract.
Home Inspection and Appraisal
A home inspection is technically optional. However, it is truly a wise investment. If any significant problems with the home are brought to light during this time, it gives the buyers an opportunity to back out of the deal. You can advise negotiation for necessary repairs if a clause for a home-inspection contingency is included in the real estate contract. An appraisal is only optional for those purchasing a property in cash. With a loan involved, the lender will require a property appraisal.
Title Search and Examination
Having a title search completed and obtaining title insurance will protect clients, as a claim can then no longer be made regarding the property deal after the purchase. Title agents should clarify any issues with the title, so no one will contest the ownership of the property once everything has been processed. Avoid any pitfalls from falling on your back by securing title agent E&O insurance.
Title Clarification and Closing Documents
There can be discrepancies on the title, whether that be issues involving former owners, back taxes, or fraudulent claims. There is such a wide variety of hiccups that can occur within the process. Title insurance and a thorough title search and examination will protect the parties involved. If any issues come up throughout the title examination, they must be properly resolved before closing. After the title search has been completed with all matters cleared, the closing coordinator will finalize the closing process, including preparing all documents for signing.
Final Signing and Records
The closer will organize a date, time, and location to sign the final closing documents with the seller, buyer, a power of attorney, and oftentimes the agents. This is the official transfer of property ownership from the seller to the buyer and typically consummates the loan. Title agents should be well aware of how transfer documents are recorded in the public records, as this is specific to the home’s county. These documents must be stored electronically on a secure server in the cloud that clients can access anytime. Clients want an experienced title agent they can trust and feel comfortable going to for any questions. Be sure to walk them through each step of the closing process.
About IPRO Agency Insurance Services
IPRO Agency Insurance Services is a specialty insurance brokerage with the expertise to protect your firm, assets and to help you retain clients. Our services offer all types of professionals the protection they need so they can stay committed to their work with ease. We are connected with leading insurers to bring you the best coverage for your unique needs and areas of risk. Get in touch with us at 888- 673-8039 so we can begin to safeguard your success.
