Frequently Asked Questions
Home Closing 101
Information you need to prepare yourself for closing day.
What is title insurance?
A title insurance policy protects your property ownership rights. There may be undiscovered issues that were not unearthed by a title search. They can threaten your ownership if discovered after your closing. Issues may include:
- Undisclosed tax liens
- Forged deeds
- Erroneous legal descriptions
- Easement problems
These are just a few of the numerous threats a homeowner without title insurance faces. Fortunately, title insurance costs you only a small one-time fee, with no subsequent annual payments.
What is a title search?
A title search is a thorough investigation of all public records associated with a property. It ensures that the only thing you are buying is a new home, and not a slew of unforeseen legal or financial entanglements. Once the search is completed and all issues resolved, title insurance is issued. A title search can uncover:
- Unpaid taxes
- Unpaid mortgages
- Judgments against previous owners
- Other court actions
- Documents that impact legal ownership of the property
How does title insurance protect me?
Should new issues emerge in the future that threaten your ownership of a property, your title insurance policy will cover the costs and labor of clearing the title. It will also pay for the cost of defending your title in court. Should the defense of your title be unsuccessful, your title insurance policy will pay you for your losses.
What is the responsibility of the closing agent?
A closing agent is responsible for gathering all the information, documents, and reports necessary to complete a closing. These may include:
- Certificates for termite, carbon monoxide, and other inspections
- Home warranty documents
- Utility bill payoffs
- Attorney information
- Mortgage payoffs
- Homeowners insurance
- Commissions and earnest monies
The closing agent is responsible for preparing the following documents:
- Settlement statement
- Loan documents
- Checks for disbursement
Once this is all prepared, you will meet with the closing officer, your attorney, and possibly the seller. All appropriate documents are signed, and funds are distributed via checks or by wire transfer.
To speak with a representative from Sojourners Title Agency about closing on your new home, contact us today.