Title examination is a close examination of all public records that affect the title to the real estate you are purchasing.
The examiner researches the history of the property and produces a report of the ownership of the property, known as the chain of title. The chain of title identifies all previous owners in succession to you.
The examiner will identify whether there are any encumbrances on the land, if the seller needs to take any actions to remedy or obtain good title prior to closing, and whether there are any easements, attachments or judgments on the property.
Once the title examination is completed, assuming it is approved, the bank can give clearance as to closing and the parties can move forward, assured that a legitimate, marketable transaction is occurring.
This portion is by far the most important part of the transaction, because it further impacts your future rights to properly own and convey the property.
Closing (also referred to as completion or settlement) is the final step in executing a real estate transaction. The closing date is set during the negotiation phase, and is usually several weeks after the offer is formally accepted. On the closing date, the ownership of the property is transferred to the buyer.
A process called settlement takes place on a specified date and time during which all parties (usually including the agents involved) meet at a settlement company, and which is presided over or supervised by a lawyer or settlement agent. At that time, the settlement agent disburses all funds listed on the settlement statement (in form of certified or wired funds) and the property conveyance takes place, and the deed is then recorded by the settlement company.
If you’ve ever mortgaged a home, chances are you were required to purchase a title insurance policy. This lender’s policy (often called a loan policy) is required by most lending institutions as a way to insure their security interest in the property. This policy protects the bank or other lending institution for as long as they maintain an
interest in the property (typically until your mortgage is
However, as a buyer, you also want to protect your investment –
and the ownership rights that come with it. This is why it’s wise to purchase an owner’s policy of title insurance, which will protect your rights as the homeowner for as long as you or your heirs have an interest in the property.
Both title insurance policies not only pay valid claims and legal fees to defend against hidden title issues, but also help to decrease
ownership risks by providing a thorough title search prior to the
issuance of either policy.
Credit Sales, Bond For Deeds, Donations, Title opinions, Powers of Attorney, and other notarial services are also available.