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, seller, and lender. All parties involved in a transaction rely on the escrow holder to follow the instructions of the contracts and lender 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.
Provide the contract and earnest money to U.S. Title.
U.S. Title accepts contracts by mail, email, via the website, fax, or phone. Earnest money is accepted by mail, wire transfer, or in person. The contract provides instruction for Closing Services.
Within seven to ten business days of the contract and earnest money receipt, U.S. Title will issue a commitment.
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 and will be exceptions on the title policy. Any easements, leases, mineral reservations, or plat restrictions are listed on Schedule B.
Schedule C items must be cleared before the title policy can be issued.
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, the underwriter, and any other party that will receive any portion of the premium for closing or examining.
All pre-closing items are provided to U.S. Title.
Each transaction has specific requirements. If required, 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 homeowners insurance information, the seller’s mortgage pay-off information, and any additional invoices or information pertinent to the transaction are collected.
The settlement statement is provided to all transaction participants.
The Closing.
All participants to the transaction will meet their Escrow Officer at U.S. Title on the day and time scheduled for 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 arrangements may be made by simply notifying your Escrow Officer. 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 the 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 if approved by the underwriters. Immediately following closing, the closing teams will provide the lender with the required documentation to facilitate funding.
The Funding.
