Closing
The Settlement Process
A property purchase agreement is signed between a buyer and seller, outlining the specifics of the transaction. The contract specifies the sale, price, settlement date, conveyance method, and tax and assessment division. The title agency/settlement company ensures good and marketable title, conducting a title search to verify the seller's ownership and locate any liens. Certifications and lien letters are requested from taxing authorities and municipalities to determine current and prior taxes.
A preliminary opinion is submitted to the title insurance company, which issues a title commitment, a promise to protect the buyer if the premium is paid and conditions are met. The title agent works with the lending bank or mortgage company, providing necessary information for underwriting. Payoffs are ordered for the seller's mortgage, and the Closing Disclosure is prepared, outlining costs for both parties. Upon closing, the property is transferred to the buyer, and the attorney ensures proper execution of mortgage documents, signing of deeds, collection of incoming money, updating title searches, recording documents, paying off liens, and canceling prior mortgages.
Closing Reconciliation
Because most lenders and title insurance companies insist that an updated title search and its filing be accomplished prior to the disbursement of funds, real estate agents and the seller may not be paid at closing. (Rosner Settlement Services makes every effort to record the documents the same day whenever possible.)
An additional impediment to immediate payment may result from the type of funds brought to closing to pay the seller, existing lien-holders and other closing costs. Normally, checks or wires from the buyer and the lender (and, in some cases, the real estate agent or even seller) are deposited into a trust account. All funds brought to closing must be certified funds. However, even in the case of certified funds, there may still be a one or two day period where the funds are not considered collected. Therefore, it is preferable that all amounts over $5,000.00 be wired to our trust account (Rosner Settlement Services encourages lenders to always wire funds which are considered collected immediately.)
A property purchase agreement is signed between a buyer and seller, outlining the specifics of the transaction. The contract specifies the sale, price, settlement date, conveyance method, and tax and assessment division. The title agency/settlement company ensures good and marketable title, conducting a title search to verify the seller's ownership and locate any liens. Certifications and lien letters are requested from taxing authorities and municipalities to determine current and prior taxes.
A preliminary opinion is submitted to the title insurance company, which issues a title commitment, a promise to protect the buyer if the premium is paid and conditions are met. The title agent works with the lending bank or mortgage company, providing necessary information for underwriting. Payoffs are ordered for the seller's mortgage, and the Closing Disclosure is prepared, outlining costs for both parties. Upon closing, the property is transferred to the buyer, and the attorney ensures proper execution of mortgage documents, signing of deeds, collection of incoming money, updating title searches, recording documents, paying off liens, and canceling prior mortgages.
Closing Reconciliation
Because most lenders and title insurance companies insist that an updated title search and its filing be accomplished prior to the disbursement of funds, real estate agents and the seller may not be paid at closing. (Rosner Settlement Services makes every effort to record the documents the same day whenever possible.)
An additional impediment to immediate payment may result from the type of funds brought to closing to pay the seller, existing lien-holders and other closing costs. Normally, checks or wires from the buyer and the lender (and, in some cases, the real estate agent or even seller) are deposited into a trust account. All funds brought to closing must be certified funds. However, even in the case of certified funds, there may still be a one or two day period where the funds are not considered collected. Therefore, it is preferable that all amounts over $5,000.00 be wired to our trust account (Rosner Settlement Services encourages lenders to always wire funds which are considered collected immediately.)