Closing
/ Settlement
A. Closing or "settlement" is the
process of completing a real estate transaction. During closing,
deeds, mortgages, leases or other required instruments are signed
or delivered. Furthermore, an accounting between parties takes place,
monies are disbursed, and recording of all pertinent documents is
completed.
A. Each
party needs to provide official photo-ID (e.g. drivers license or
passport). If you are required to bring funds to the settlement,
please contact your Escrow Officer prior to closing to confirm amount(s)
and acceptable method of funding ( i.e., cashier's check, wire funds,
ect.) The funding method can effect the timing of disbursements
affiliated with your transaction.
A. Usually settlement
will take about one hour for a sale, and 40 minutes for a refinance,
but this can vary.
A.This is a summary
of the financial portion of the real estate transaction. The HUD-1
lists the purchase price, loan amount and closing costs for both
buyer and seller, and show all pro rations and sums to be disbursed
by the title company to all parties.
Titles and Title Searches
A. A title is
the owner's right(s) to possess and use a real property.
A. Unlike buying
a car or television, land title is permanent. While the function
of most other forms of insurance is to protect you against losses
arising out of unforeseen future events, the primary purpose of
title insurance is to eliminate risks by resolving any problems
and, therefore, preventing future liabilities caused by defects
in the title arising out of past events.
A. A title search
determines, based on a search of the public record, the property
owner's rights. Documents searched include court records, property
and name indices. Additionally,the sellers right to transfer ownership
is verified, along with the status to the subject property.
A. Some examples
of "problems" could be: unpaid taxes, unsatisfied mortgages,deeds
of trust, unpaid judgments against the seller, and encroachments
and other restrictions on the land
Title Insurance
A. Title insurance
is a contract to indemnify against losses arising from historical
defects in the title to real estate.
A. Owning real
estate is one of the most precious values of freedom in this country.
Get the assurance that the property will you are buying will be
yours, forever. Make certain, no one else will have any claims or
restrictions against your home other than your lender. Title
insurance indemnifies risks and losses caused by defects in title
from an event that occurred before you owned the property.
A. Title insurance
is different from other types of insurance in that it protects you,
the insured, from a loss that may occur from matters or defects
from the past. Other types of insurance such as auto, life, or health
cover you against losses that may occur in the future. Title insurance
does not protect you against any future events.
A. No. A deed
is simply a document transferring the right of ownership, whatever
that right may be, from a seller to a purchaser.For example, the
property may have changed hands many times since the deed was issued.
As an example, liens, levies, and judgments, outstanding against
the title won't be shown on a deed.
A. Yes - Any
number of events could occur even in a year which could negatively
affect the title to that property.
A. The most common
are the lender's policy and an owner's policy. The lenders policy
is usually a condition of the loan and protects the mortgage lender's
security interest in the property up to the value of the policy.
The owner's policy covers the purchase price of the property and
protects the interest in the real estate for the owner. When purchasing
a property, where you are also creating a mortgage, the Owner's
& Lender's Policies are issued simultaneously. The title premium
is based on the greater of the purchase price or the mortgage amount.
A lender's policy does not provide insurance coverage for the property
owners.
A. You are covered
for as long as you or your heirs own the property. Even though the
property may be sold, you may still have a legal obligation by virtue
of the warranties in the deed conveying the property. The policy
insuring you would still be in effect. If you subsequently convey
your property to your children, a trust, a corporation or L.C.C.,
as examples, secure an endorsement to your policy before you change
the title to the property to ensure you maintain that insurance
coverage.
A. If you subsequently change
the ownership of your property, we recommend you secure an endorsement
or obtain a new owner's policy for the property. Otherwise, you
may not have continuing coverage for that succeeding transaction.
You should also check with your lender, if applicable, before you
make such an ownership change.
Post Closing
A. After settlement,
the buyers and sellers job is over. However, Title Company of the
Rockies will continue working in order to:
* Audit the settlement sheet and review all documents
* Comply with the lender's written instructions in returning their
paperwork
* Record the deed, mortgage and other documents with the County
* Disburse funds as appropriate
* Issue the title insurance policy and any endorsements required
* Manage any funds escrowed for a subsequent event or contingency
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