Understanding The Closing Process: Real Estate Title And More

Presented by:Title Junction

http://www.title-junction.com/

Closing A Real Estate Agreement✦ The closing of a real

estate agreement is the end of a long and demanding process.

✦ It requires the understanding and action from every person involved in the transaction.

✦ While the process may vary to some extent from Cape Coral, Florida to Portland, Oregon, in general, it will remain constant.

Title Junction | Fort Myers, Florida | Real Estate Title Insurance, Escrow, Notary Services And More

What To Expect In The Eastern Portion Of The U.S.

✦ Closing takes place on a specific date.

✦ All involved parties meet at the office of the settlement company.

✦ The settlement agent disburses the funds and the deed is signed.

✦ The settlement company will record the transaction with the county recorder’s office.

Title Junction | Fort Myers, Florida | Real Estate Title Insurance, Escrow, Notary Services And More

What To Expect In The Western And Southern Sections Of The U.S.

✦ Rather than having all parties meet at a settlement company, a closing of escrow ensues.

✦ The title company, or other trusted third party, holds the funds and the signed deed until all buying and selling conditions have been met.

✦ This practice is done so that the property can change hands without both parties having to be present at the same time.

Title Junction | Fort Myers, Florida | Real Estate Title Insurance, Escrow, Notary Services And More

What A Real Estate Title Means To The Property Owner

✦ A real estate title states who has ownership of a piece of property.

✦ Ownership indicates that the owner has the right to use the property, improve upon it, or sell it at his discretion.

✦ When the owner decides to sell the property, a title company verifies that the seller has the right to sell it and that there are no entanglements that would cause financial loss to a buyer and a lender.

Title Junction | Fort Myers, Florida | Real Estate Title Insurance, Escrow, Notary Services And More

Verifying Ownership Of Property✦ The entity that verifies ownership of property is called a

title company.

✦ The title company will begin its search with the property abstract.

✦ The property abstract is a summary of every registered legal document on a particular piece of property.

✦ It begins with the original U.S. patent that established the deed and will continue though time to the current owner.

✦ Examples of documents included on the summary are deeds, mortgages, wills, easement rights granted and removed, and encumbrances such as liens.

Title Junction | Fort Myers, Florida | Real Estate Title Insurance, Escrow, Notary Services And More

Title Insurance Protects Buyers And Lenders

✦ There can be unforeseen defects in a real estate title, even after a thorough title search has been done.

✦ If the buyer is borrowing the funds from a lender, title insurance is always required. If the buyer is not borrowing from a lender, it is still highly recommended that he or she invests in title insurance.

Title Junction | Fort Myers, Florida | Real Estate Title Insurance, Escrow, Notary Services And More

What Is Title Insurance For?✦ Title insurance protects buyers and lenders from

unexpected issues that can arise after property has been purchased.

✦ The policy will cover legal fees associated with the defense of the buyer’s right to title or will reimburse the buyer for any losses associated with a challenge to the ownership of property.

✦ Title insurance will also defend a lender’s lien on the property and will reimburse them for losses incurred if the challenger’s rights are upheld.

Title Junction | Fort Myers, Florida | Real Estate Title Insurance, Escrow, Notary Services And More

Understanding Escrow✦ As noted earlier, escrow is simply a deposit of funds, a deed, or

other instrument by one party to be delivered to another party upon the completion of specified events or conditions.

✦ When a seller accepts an offer from a buyer, the property enters into a period of escrow.

✦ The agent deposits the signed deed and the buyer deposits the funds with the escrow agent.

✦ When the real estate title search is completed and all parties agree to the terms of a title insurance policy, the escrow agent will convey the title to the buyer and disburse the funds to the seller.

✦ The escrow account is then closed.

Title Junction | Fort Myers, Florida | Real Estate Title Insurance, Escrow, Notary Services And More

Is A Notary Required At A Real Estate Closing?

✦ The answer is yes, for documents such as affidavits, deeds and powers of attorney.

✦ A notary is a government appointed public servant who is authorized to witness the signing of important documents and to administer oaths.

✦ Certified individuals are vested with this authority to deter fraud such as forgery and to ensure that documents are properly executed.

✦ The notary identifies signers and also makes certain that signers are entering into agreements with a full understanding of what is taking place and are willingly taking the action.

Title Junction | Fort Myers, Florida | Real Estate Title Insurance, Escrow, Notary Services And More

Learn About The Settlement Process To Alleviate Some of The Anxiety

✦ Closing a real estate transaction will rarely be without its moments of anxiety; however, buyers and sellers can reduce some of their concerns by learning about each phase of the process.

✦ This will reduce worry and allow for a smoother closing.

Title Junction | Fort Myers, Florida | Real Estate Title Insurance, Escrow, Notary Services And More

About Title JunctionTitle Junction is a full service real estate title company serving the area of Fort Myers, Cape Coral and the entire state of Florida. The company handles a number of real estate title services for both commercial and residential properties. Employees of Title Junction can also act as a witness in courtesy closings, an escrow agent or notary public. The company was founded in 2005.