In the purchase of a home,
land or investment property, the parties should enter into an Earnest Money Contract. The Contract will detail the agreement
between the parties and determine the guidelines for the closing of the transaction. The Earnest Money Contract also gives
instructions to the title company as to who pays for what fees and any reservations or special instructions to be contained
in the legal documents. The Contract gives specific instructions on the type of transaction, and if a new survey is to be
done. The Earnest Money Contract is the agreement between parties to sell property and it survives the closing as a legal
and binding document.
Once prepared, the original Earnest
Money Contract should be delivered to the title company with the earnest money deposit to be receipted. The title company
will then open title, do a title search, and order tax certificates on the subject property.
After the title search
is completed, it is examined by the examiner and a Commitment of Title Insurance is prepared. A copy is mailed to all parties
involved, including the Real Estate Broker or Agent, the Lender, the Buyer(s) and Seller(s) if applicable for review.
*Note: If there is no Earnest Money Contract or this is a Refinance or New Construction, the same process applies once the
order is placed with the Title Company.
After the Commitment
for Title Insurance has been reviewed by all parties, and all title matters listed on Schedule "C" of the commitment
are resolved, a closing is scheduled by the title company at the request of the Real Estate Broker, Agent or Lender. A Buyer
or Seller of a transaction will usually request a closing be scheduled when a Real Estate Broker, Agent or Lender is not involved.
The closing is scheduled when it is most convenient for all parties, so that all may attend. It is best for all parties
to be present at the closing, however, in some instances exceptions may be made. The closing should not be set until payoff
figures are obtained, the new survey is done and reviewed by the title company, and instructions and documents are sent to
title company from the lender. There may also be title matters to resolve prior to closing a transaction.
a closing date is scheduled, the amount of money for the Buyer(s) or Borrower(s) to bring to closing should be obtained from
the title company.
The transaction is closed by an experienced closer and
documents are reviewed and signed at this time. A Photo ID must be brought to closing by the Buyer(s) and Seller(s) or Borrower(s)
to verify the identity of who is signing the legal documents. Also, the Seller(s) will be required to provide a Social Security
Number at closing. There may be other items such as proof of insurance needed at closing when a Lender is involved. Certified
funds MUST be brought to closing, made payable to Currey Title Company Escrow Account.
Certified funds are listed as cashier's checks, wire transfers, certified checks, or teller's checks. A title company
can not accept personal checks or credit union checks that do not have "Cashier's Check" or "Official Check"
printed on a check that is over $1,500.00.
At the closing, all documents are signed and notarized, and copies are
given to the parties involved. If a Lender does not attend closing, copies of documents are faxed or emailed to them to obtain
a funding number. Once all funds are received, and a funding number is obtained, if needed, an Escrow Officer disburses the
funds and the legal documents are recorded. At this time, the sale is completed. The final Title Policy will be mailed out
to the Buyer(s) or Borrower(s) and Lender, if applicable, within 45 days.
PLEASE SEE THE FLOW CHART
BELOW TO HELP EXPLAIN THE CLOSING PROCESS AND THE RESPONSIBILITIES OF THE TITLE COMPANY.