Settlement - what to expect

The contract sale of a residential or commercial property begins the purchase process. Settlement (also known as "closing") is the final step. Your title company plays an integral role in the entire process. Here’s an explanation of what generally takes place:

1. The buyer applies for a loan for the property purchase. Prior to loan approval, the mortgage company performs a credit check and obtains a property appraisal and survey, termite report, well and septic certification, and fire/homeowners insurance verification.

2. Your title company orders a title search to determine if any debts are owed on and who is the legal owner of the property.

3. Once a clear title has been established, the title company provides your mortgage lender with a title insurance commitment.

4. A closing time and place is scheduled by the title company and coordinated with the buyer, seller, realtor, mortgage lender, and other applicable parties.

5. The title company prepares all legal documents necessary to convey title, including a new deed, note, and mortgage.

6. A few days prior to settlement, the title company notifies you of the final closing costs and will advise you to bring a certified or cashier’s check to settlement.

7. At the settlement table:

	the numerous prepared documents are explained and signed by all parties
	funds are received and disbursed to ensure all existing liens and mortgages are properly removed from the records
	loan documentation is completed and signed
	title to the property is transferred
	keys are turned over to the new owner

8. After settlement the new deed and loan documents are recorded in the county offices and a new mortgage lien is created.

9. Title insurance is issued and forwarded to you and your lender along with the recorded deed.

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