Sellers, Real Estate Agents & Buyers

Sellers, Real Estate Agents & Buyers

The Settlement and Closing Process

A successful real estate closing requires technical knowledge and experience. U.S. Title acts as an escrow agent, holding legal documents and funds on behalf of a buyer and seller. All parties involved in a transaction rely on the escrow holder to follow the instructions of both parties without bias. Whether it's a multi-million dollar closing, a multi-state transaction, or closing on the house around the corner, U.S. Title supplies quick and accurate service.

Step 1

Provide the contract and earnest money to U.S. Title.


U.S. Title accepts contracts and earnest money by mail, email, via the website, fax or phone. The contract provides direction for Title Production and instruction for Closing Services.

Within seven to ten business days of the contract and earnest money receipt, U.S. Title will issue a commitment.

Image

U.S. Title issues a commitment.


This document is U.S. Title’s “commitment” to eventually issue a policy on the property. The title commitment is composed of Schedules A, B, C and D.

Schedule A informs the reader of who the proposed buyer is as well as who is in title. It also lists the coverage amounts for the eventual Owner’s Title Policy (the sales price) and Lender’s Title Policy (the loan amount).

Schedule B describes aspects of the property that will not change. Any easements, leases, mineral reservations, plat restrictions and maintenance charges are listed on Schedule B.

Schedule C items must be cleared before closing can take place.

Schedule D is a disclosure for the title company and its underwriter. Both companies’ officers are provided, and the proposed premium is listed along with the split between the title company and the underwriter.

Image

All pre-closing items are provided to U.S. Title.


Each transaction has specific requirements. Usually, an inspection of the physical property is conducted to notify the buyers and sellers of features of the home which need attention before closing. A pest inspection is another common service performed. Both of these items and the invoices that accompany them are provided to the Closing Teams at U.S. Title.

Additionally, surveys, the buyer’s home owners insurance information, the seller’s mortgage pay-off information and any additional invoices or information pertinent to the transaction are collected.



Image

The settlement statement is provided to all transaction participants.


U.S. Title prefers to receive the lender’s closing instructions by 3:00 p.m. CST the day before closing. With these instructions, the contract, invoices and documents provided to U.S. Title, the settlement statement is completed. Before distribution to all parties, the lender must approve the settlement statement. It is then provided to the realtors, mortgage brokers, attorneys, builders and anyone else participating in the closing.
Image

The Closing.


All participants to the transaction will meet their Escrow Officer at U.S. Title on the day and time scheduled prior to closing. Each U.S. Title location has professional closing rooms to accommodate its clients. Closings are usually scheduled on the hour between the hours of 9:00 a.m. and 4:00 p.m. CST, but alternative plans may be made by simply notifying the U.S. Title staff. An hour is allotted for each closing. Closing documents may be provided before the closing to the transaction participants when requested. If buyers or sellers are unable to attend closing, the closing package may be emailed or mailed out via Federal Express, or a specific Power of Attorney authorized by U.S. Title and the buyer’s lender may be used. Immediately following closing, the closing teams will provide the lender with whatever is necessary to facilitate the funding.
Image

The Funding.


The funding process may take hours or days, depending on the lender. When funding is complete and all moneys are received by U.S. Title, all invoices are paid, the seller’s mortgage pay-off is made, documents are recorded at the courthouse, and possession occurs. Funds may be mailed, delivered locally or wired to the customer’s account, based on instructions provided to the closer at closing.
Image

The Policy.


Within 90 days of funding, the title policies are issued and mailed with the recorded documents. The Owner’s Title Policy is mailed with the Warranty Deed to the buyers, and the Lender’s Title Policy is mailed with the Deed of Trust to the lender.