The Closing Process
Congratulations on your contract! The following items will take place between now and closing:
Ratified Contract & Lender's Request
Our office will be provided with a copy of the ratified contract. This is the fully signed contract detailing the terms of your purchase. If your purchase is subject to financing we will be awaiting your lender's title request as well that details the terms of your loan. Please be sure to provide your loan officer with our contact information so that they can get this request to us as soon as possible.
Title Examination & Title Insurance
Once the ratified contract and lender's title request (if applicable) has been received our office will initiate the title examination on the subject property. This is a full search of the title on your purchase. This search encompasses the title for the land, not just since the existence of the home.
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Upon receipt of the title examination, we will review and clear any noted title defects or concerns. At closing your lender will require Lender's Title Insurance to protect their interest in the property. You can elect to waive coverage on Owner's Title Insurance if you wish. We will have you sign a waiver at closing.
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Owner's Title Insurance protects you against any unknowns on title. While we perform a thorough title examination we cannot rule out indexing errors by the Clerk's Office, errors in prior transactions, pending matters against the property we aren't aware of, etc. There are a multitude of title issues that can arise after settlement and the Owner's Policy is a one time fee that covers you for the life of time you own the property, after you sell the property and cover's any heirs that may inherit the property.
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It is an insurance we hope that you never have to use; however, it's value is tremendous in the event something were to arise. Be sure to protect the largest investment you may ever make!
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Once all matters relative to title have been reviewed our Underwriter will prepare a title binder for your policy/policies and submit it to your lender (if applicable).
Items Addressed at Closing
During preparations for closing, below are some of the items we will be working to verify (as applicable):
-Status of the Real Estate Taxes
-Status of the Homeowner's Association/Property Owner's Association/Road Maintenance dues.
-If the property is a manufactured home, the current owner must surrender that title as real estate to the DMV. We will work to confirm this has taken place ahead of closing. Listing agents are encouraged to begin this process at the time the property is listed.
-We will collect for any outstanding invoices provided to our office at the time of closing. (Inspections, surveys*, commission to realtors, etc.)
*Surveys are not required unless deemed necessary by the title examination. If the chain of title cannot determine a clear understanding of the location and boundary of the property a survey may be required. Surverys are not requested by the title company. The client or realtor will make this request to the survey company of their choice. The survey can be provided to our office ahead of closing to be recorded along with the deed.
Closing Day & Funds For Closing
If you are financing your purchase, we will be awaiting your lender's closing instructions to finalize details for closing. We cannot confirm your wire amount* until we have this information from your lender.
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*Funds in excess of $5,000.00 must be sent in the form of a wire. Please use the wiring instructions provided to you by our office. Please call our office to verify those instructions ahead of sending your funds. No changes will take place to those instructions. Funds under $5,000.00 must be provided in the form of a cashier's check made payable to Anchor Title SML, LLC.
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Once documents have been signed and all funds received (by both borrower and lender, as applicable) then the documents will be submitted to record at the Clerk's Office. Once recorded funds to the seller, realtors and any invoices to be satisfied will be paid. It is illegal to disburse funds before documents have been recorded.