A Title Company’s Closing Process Complete Guide 2022

A title company’s closing process includes all the steps required to legally transfer ownership of the home you’ve chosen to purchase. It includes signing the title, completing the loan paperwork, and providing the buyer with a free and clear title. 

A title company can protect the buyer from previous ownership disputes in a house or real estate property. It confirms that seller has a legal right to sell the property to the buyer and that the title is free of any third-party claims. Continue reading our guide to learn more about the closing process.

The Closing Process of a Title Company

The closing process begins when the buyer and the seller sign a purchase agreement. The entire procedure can be broken down into ten phases. 

A Real Estate Contract is signed by the buyer and seller

When the buyer and the seller reach an agreement, the buyer must sign a real estate contract to begin the closing process. So it is important to carry out preliminary research on the home and surrounding area to offer a reasonable quote for the home. This is where a real estate agent can come in handy.

Submission Of The Earnest Money Deposit and the Real Estate Contract

The title company will open an escrow account and keep the deposit and real estate contract until the closing. This safeguards the homebuyer and seller following the terms of the real estate contract.

Home Inspection and appraisal

A home inspection is an optional step during the closing process, but it is recommended. If you find any red flags with the house during the inspection period stipulated in the real estate contract, you have the option to back out of the deal. 

If the real estate contract includes a clause for a home-inspection contingency, you can negotiate with the seller and ask them to make the necessary repairs to the house. If you are purchasing a home without a loan, an appraisal is only optional. Otherwise, a lender will demand a property appraisal.

Title Research and Examination

A title search and insurance will ensure that no one can claim the property after purchasing it. A title agent will clear up any issues with the title so that no one will contest your ownership of the property once you own it.

Title Issues Clarification

In some cases, the title may be ambiguous. Former owners, back taxes, and even fraudulent claims may arise during this process. However, with title insurance and a thorough title search, you can rest assured that you are protected from such claims. Any issues arising during the title examination must be properly resolved before completing the transaction.

Closing Documents

After the title search is completed and all title issues have been resolved, your closing coordinator will complete the closing process and prepare all documents for signing. Before the closing date, the coordinator will ensure that all documents required under the state law are available. 

Buyer documentation includes:

• Letter of Promissory Note (if applicable)
• Mortgage and loan documentation (if applicable)
• Policy of Owner’s Title Insurance
• ALTA Settlement Statement and/or Closing Disclosure
• Affidavits and other documents required to purchase the property
• Documents of personal identification

Seller’s documents are:

• Purchase Agreement
• Warranty Agreement
• Affidavits and other documents to establish title
• Power of Attorney (if applicable)

Signing Parties Convene

The seller, buyer, and their agents meet at the designated location to sign the documents transferring ownership of the property. Sometimes, this process occurs via the Internet or a mobile notary.

Documents Are Filed in the Public Registry

All transfer documents are recorded in the public records of the county in which the home is located. This completes the final transfer of title to the buyer.

Documents Are Stored Electronically

We store all vital documents electronically on a secure server in the cloud, so you can access them whenever you need them, 24 hours a day, 365 days a year. When you choose Campus Title for your real estate closing, you can be confident that our friendly and experienced staff will walk you through each of these steps to make the closing process seamless.