The Title Transfer Process:
The title transfer process starts with the contract. A buyer and seller agree on terms and sign an Agreement of Sale (AOS). The Agreement of Sale contains the pertinent information that we need to get started. Once the agreement is signed, the realtor, lender, buyer, or other authorized party will send the agreement of sale to the title company and request title insurance. The buyer has the legal right to choose the title insurance provider!
Once we receive your request for title insurance, we notify one of our title searchers to perform a title search. We also order tax certifications, mortgage payoffs, utility certifications, judgment and domestic relation searches, and anything else necessary.
Once the title search is completed, the searcher sends us an abstract that reports the findings of the title search. The search provides us with the current owner of record, the chain of title going back 60 years, and the legal description for the property. It also turns up anything affecting the title such as past deeds, mortgages, judgments, liens, divorce filings, UCC filings, etc. One of our title professionals will examine this information for accuracy and then create a title commitment.
The title commitment will be sent to all parties involved in the transaction. The Commitment reports the findings of the title search in a uniform and consumer-friendly report. The commitment will list all the requirements to clear the title as well as any exceptions which are documents found of record that do not adversely affect the property and will be excepted from the title policy. We will issue the commitment with further instructions on what needs to be done by each party to ensure the title requirements are met and cleared.
Once we know what needs to be done to clear the title, we begin coordinating closing with all parties. Leading up to closing we will be preparing closing documents such as the new deed, various affidavits and other title documents to be signed. We will also be working closely with the lender to reconcile fees and ensure that we have all the necessary loan documents for closing (if there is financing involved). All the fees, taxes, tax adjustments, credits, payoffs, commissions, etc. will be compiled on the settlement statement to report all monies due to and from each party. The settlement statement will then be released to all parties for review.
At this point we are ready for closing. The closing is essentially just a meeting of the parties to sign all the documents, exchange and disburse funds, and transfer the keys. Our closer will walk you through the closing and make sure that everything is signed properly, and all closing requirements are met.
Once closing is complete, we ensure that all payments are delivered to their respective payees, the original deeds and mortgages are sent for recording at the courthouse, and the loan documents are finalized and shipped back to the lender. Finally, the title policies are then prepared and sent out to our insured.
