The Big Day: What Happens When You Close on a Home
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The closing, also referred to as the settlement, is the final step in the sales process. It’s when property ownership is transferred from the Seller to the new owners. SolomonParks Title and Escrow, LLC works hand in hand with your agent to manage your transaction from contract to closing.
What is a Real Estate Closing?
As a Seller, this is when you will sign the deed over to the buyer, completing the sale of your home. The final distribution of funds takes place here. Your mortgage balance will be paid in full and you will receive a check for any proceeds you earn from the sale. If you need to bring funds to complete the transaction, a cashier’s check or wire transfer is usually preferred. Closing costs and commissions are also paid at this time.
Also, the title company will register the new deed with the appropriate government office. This record will show the buyer as the new homeowner.
Be sure to bring your keys, any documents that go along with home appliances and systems, and garage door openers, if applicable.
As a Buyer, this is the day your new home is officially yours! After your sales contract has been accepted, a title search will be performed to look for any problems with the homes title that may be on record. This typically involves a review of land records of past owners. Any problems (such as construction or tax liens, etc) that are found with the title are fixed before closing. Title insurance will protect you in cases like this.
What is Title Insurance?
Title insurance protects you against risks and losses caused by flaws in title arising from events that happened in the past. To help protect you against unforeseen problems with the title, it is recommended that you obtain an Owner’s Title Insurance Policy. These are usually issued in the amount of the purchase price of your new home. There is a one-time fee at closing and it is good for as long as you own your property. This policy fully protects you against possible hidden title defects.
Most lenders also require lender’s title insurance, typically known as a Loan Policy. This is based on the amount of your mortgage loan. It protects the lender’s interest in the property should a problem with the title arise. This policy amount decreases each year, and disappears as the loan is paid off.
Why You Need Title Insurance
Although the chances of someone challenging your interests are slim, you’ll want to be protected should a claim arise and is found to be legitimate. With SolomonParks Title & Escrow, LLC, you’re covered. Our extensive title search satisfies your obligation to present conclusive evidence that the title is clear of any past defects, allowing you to easily convey title to the new buyer.
Title Insurance Protects You Against:
- Another owner who may have an interest in the title
- Improper handling of documents, such as a form that is not correctly signed, sealed, recognized or delivered
- Questions of fraud, incompetence, coercion or impersonation
- An improperly recorded document
- Liens on the property that exist because of a deed, trust, previous marriage, judgment, tax assessment, or an outstanding charge by a condominium or homeowners’ association
- Liens on the title, either present or future, that may arise from material or labor furnished prior to the policy date (unless payment had been agreed upon)
Your Parks agent, combined with the expertise of SolomonParks Title and Escrow, can guide you through these steps easily for a smooth transaction. Be confident in your team; we’re here to help.
Now for the fun part: unpacking!
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