Must-Haves from Your Title Company to Close Your Next Deal

Closings have a lot of moving parts. Getting the documents critical to the close not only helps you get your next deal but they establish your professionalism as well. You want to partner with a title company you can count on to deliver what you need. Here’s what you can expect:

Necessities from Your Title Company

Lien Paperwork

Your title company will review the ownership history of the property and search for liens on it. If any are found, they must be cleared before the transfer of title and you’ll need paperwork stating they have been. This could be a letter from the IRS or the entity which levied the lien to begin with.

Title Report

In addition to the lien paperwork, you’ll be issued a title report. This document contains:

• The Legal Description of the Property. This is the description of where the property is located, including boundaries such as street names and intersections.
• Property Taxes. If any unpaid taxes exist on the property, they must be settled before the debt holder gets paid. The title report will contain information on any outstanding or paid issues involving property taxes. These issues are considered the primary lien on a title report.
• Mortgage Liens. As mentioned above, lien paperwork must be included in the documentation provided to the lender. When a sale closes the liens must be paid in the order they are listed. Mortgage liens are always secondary to property tax liens. Easements will also show up in this section of the title report.

Special Circumstances

Although this documentation appears on the title report it bears special attention. If a home is located in an historic district, and because of that location it is subject to certain rules and regulations about altering its facade and other appearance, it will be noted in the title report.

Closing Paperwork

The title company sends all of the completed paperwork back to the lender for funding approval. The lender will then confirm that all of the paperwork was filled out per its instructions and approve the disbursement of funds. For real estate purchases, the funds are then wired to the title company. In order for the deal to be officially “closed” you should obtain copies of these transactions.

Recording and Close of Escrow

After the title company reviews the paperwork one last time in order to ensure the needs of all parties and instructions were followed, they disburse the funds as directed. The following business day the title company records that all the legal documents have been executed and it records a reconveyance on all old liens. Once the new loan has been recorded, the loan can be officially closed. Copies of this paperwork may be obtained.

Many people believe the loan is closed when the buyers walk away from the table rubbing their hands from the numbness that sets in after signing so many times. However, loan officers know your title company is busy behind the scenes tying up loose ends and recording the sale.

Work with a title company that puts its customers first and you’ll be guaranteed all paperwork will be in order and you’ll have what you need to shine in front of your customers.