A Title Company’s Closing Process Simplified to 10 Steps
A title insurance company closing process includes all the necessary steps to make the home you’ve decided to purchase legally yours, including signing title and loan documents (if applicable) and providing you with free and clear title. Many homebuyers are interested in learning more about the closing process to understand what they should expect. At Title Partners of South Florida, we pride ourselves on having a title company closing process that’s simple and transparent.
The Closing ProcessWhen you choose Title Partners of South Florida to handle your real estate closing, it will include the following 10 steps:
1. The Buyer and Seller Sign a Real Estate ContractWhen you reach an agreement with the seller, you’ll need to sign a real estate contract to begin the closing process. It’s important to complete preliminary research on the home and surrounding area, so you can offer a fair price for the home. This is where a real estate agent is extremely valuable.
2. The Earnest Money Deposit and Real Estate Contract Are Submitted to UsWe’ll open an escrow account and hold the deposit and real estate contract until the closing has been completed. This protects the the homebuyer and seller pursuant to the terms of the real estate contract.
3. Home Inspection and AppraisalA home inspection is an optional step during the closing process, but it’s wise to get it done. If you discover any serious issues with the home during the inspection period pursuant to the real estate contract, you have the opportunity to back out of the deal. You may be able to negotiate with the seller to have them complete any necessary repairs if the real estate contract included a clause for a home-inspection contingency. An appraisal is only optional if you are purchasing a property without a loan. Otherwise, a lender will require a property appraisal.
4. Title Search and ExaminationHaving a title search completed and obtaining title insurance will give you the assurance that no one can make a claim to the property after you purchase it. A title agent will clarify any issues with the title, so no one will contest your ownership of the property once you own it.
5. Clarification of Title MattersIn some cases, the title could be clouded. Issues involving former owners, back taxes and even fraudulent claims may arise during this process, but with title insurance and a thorough title search and examination, you can be sure you are protected. If any problems arise during the title examination, they must be properly resolved before the transaction is closed.
6. The Title Closer Compiles Closing DocumentsAfter the title search has been completed and all title matters are resolved, your closing coordinator – AKA closer – will finalize the closing process including preparation of all documents for signing. The closer will ensure that all documents required by Florida law and the lender (if applicable) are available before the closing date. Buyer documents include:
- Promissory Note (if applicable)
- Mortgage and associated loan documents (if applicable)
- Owner’s Title Insurance Policy
- Closing Disclosure and/or ALTA Settlement Statement
- Affidavits and miscellaneous documents necessary to purchase the property
- Personal identification documents
- Bill of Sale
- Warranty Deed
- Affidavits and miscellaneous documents to clear title
- Power of Attorney (if applicable)