Starting the Process:
A sales contract is signed by the buyer and seller and delivered to the closing agent, usually with a deposit. The escrow is accepted by the escrow agent, usually by written notation on the contract. The escrow agent starts the closing process by opening a search of the records. The file begins to be processed. Tax information, loan payoffs, survey (if necessary), homeowner/maintenance fees, inspections/reports, and hazard and other insurances as well as legal papers are ordered.
Title search and examination:
This is a search made of the public records. Records searched include deeds, mortgages, paving assessments, liens, wills, divorce settlements, court records, home owner associations, etc. and other documents affecting title/ownership to the property/asset. Title examination/examination of the records is the examination of the documents found during the title search that affect the title to the property. This is when verification of the legal owner is made and the debts owed against the property are determined. Upon completion of the search and examination, a commitment/preliminary report is prepared and reviewed and sent out to interested parties.
Document preparation and/or of the records:
Settlement/closing the transaction:
Escrow/settlement agent oversees closing of the transaction. Seller signs the deed/transfer of ownership document and closing affidavit. Buyer signs the new note and mortgage when applicable. The old loan is paid off. Seller, real estate professionals, attorneys and other parties involved in the transaction are paid at the closing.
