The Settlement and Closing Process
Tradition Title Company will act without bias as your third-party escrow and closing agent. A successful real estate closing combines technical knowledge, planning and experience. As the escrow holder, we will follow the instructions set forth in the contract and by the lender to the letter. Every transaction from a multi-million-dollar property to the first-time buyer’s home receives the same level of service and processing accuracy today’s buyers, sellers and their agents have come to expect.
1
Earnest money can be delivered in person via check or money order, by wire transfer, or through Zoccam.
Tradition Title accepts contracts by email, via the website, overnight mail or fax. We are also happy to send a courier to pick up a contract from your real estate office. Earnest money can be delivered in person via check or money order, by wire transfer, or through Zoccam. The contract is a legally binding agreement between the buyer and seller outlining the terms of the transaction.
Within seven to ten business days of the contract and earnest money receipt, Tradition Title will issue a commitment.
2
Tradition Title Company issues a commitment.
This document is Tradition Title’s “commitment” to eventually issue a policy on the property. The title commitment is composed of Schedules A, B, C, and D.
Schedule A informs the reader of who the proposed buyer is as well as who is in title. It also lists the coverage amounts for the eventual Owner’s Title Policy (the sales price) and Lender’s Title Policy (the loan amount).
Schedule B describes aspects of the property that will not change and will be exceptions on the title policy. Any easements, leases, mineral reservations, or plat restrictions are listed on Schedule B.
Schedule C items must be cleared before the title policy can be issued.
Schedule D is a disclosure for the title company and its underwriter. Both companies’ officers are provided, and the proposed premium is listed along with the split between the title company, the underwriter, and any other party that will receive any portion of the premium for closing or examining.
3
All pre-closing items are provided to Tradition Title.
Each escrow file has specific requirements depending on the property type, terms of the sale and transaction type. Our escrow team will order surveys (if requested), tax certifications, home warranties (if requested), verify the homeowner’s insurance information for the buyer, obtain the seller’s pay-off information, and process any invoices or information pertinent to the transaction.
4
The settlement statement is provided to all transaction participants.
Tradition Title prefers to receive the lender’s closing instructions at least 48 hours prior to the closing. With these instructions, the contract, invoices and documents provided to us, the settlement statement is completed. Before distribution to all parties, the lender must approve the settlement statement. It may then be provided to realtors, mortgage brokers, attorneys, builders and anyone else participating in the closing.
5
The Closing.
All participants to the transaction will meet their Escrow Officer at Tradition Title on the day and time scheduled for closing. Each of our offices has professional closing rooms to accommodate clients. Closings are usually scheduled on the hour between the hours of 8:30 a.m. and 5:00 p.m. CST, but alternative arrangements may be made by simply notifying your Escrow Officer. Closing documents may be provided before the closing to the transaction participants, if available.
If a buyer or seller is unable to attend the closing, the options available to either party include using mobile notary, overnighting a closing package via UPS or Federal Express or a Remote Online Notary (RON), if permitted by the lender. If a Power of Attorney is being used, it must be approved by our underwriters. Immediately following closing, the closing teams will provide the lender with the required documentation to facilitate funding.
6
The Funding.
The funding process can take as little as one hour or a few days, depending on the lender and transaction type. When funding is complete and all money is received by Tradition Title, all invoices are paid, the seller’s mortgage pay-off is made, documents are recorded at the courthouse, and possession occurs. Funds may be mailed, delivered locally, or wired to the customer’s account based on instructions provided to the Escrow Officer at closing.
Please note that if a closing concludes after 3:00pm CST, monies will be wired the following business day.
7
The Policy.
Within 90 days of funding, the title policies are issued and sent to the buyer and lender.
