In a real estate transaction, “closing” is the time when all parties’ documents are executed and funds are received and disbursed by the title agency or attorney. While closing is typically the end of the transaction for the buyer and seller, it is not the end of the transaction for your title agency. There are additional requirements that need to be taken to wrap up a real estate transaction.
At Peak Title Professionals,, we call these last few steps “post-closing.” Post-closing includes three key activities: recording the deed and/or mortgage (deed of trust), disbursing funds, and issuing the title policies.
Knowing what form your title takes is very important because your title may come with restrictions on
At closing, the deed granting title to the buyer will be signed by the grantor/seller and then sent for recording by your title agency or attorney, if the transaction is in a state that requires an attorney to handle closing. All deeds will be recorded in the public records of the county in which your property is located, whether or not a state requires a deed to be recorded to effectively transfer ownership. This gives effective public notice of the conveyance and your ownership of the property.
We go into more detail about recording in this article.
the typical rights of a property owner.
For example, often if a building is listed on a historic registry, your title to the property is limited by whatever restrictions the local authority has placed. This could mean you may not be able to make additions to buildings or renovate the interior. We take a deeper look at common kinds of title restrictions here.
Understanding your title rights, having clear title, and ensuring that you are protected if someone challenges your title are all incredibly important to protecting your rights as an owner of property.
Prior to closing, your closing team has worked diligently to gather payoffs, invoices, tax statements, and other items needed to transfer clear title to the buyer. Payees may include prior lenders, HOA associations, third party vendors, and/or taxing and recording authorities. Leading up to and during closing, purchase price funds and earnest monies are transferred to the title agency. Once the closing is complete, the title team or attorney will take steps to approve and disburse funds according to the contract and documents received throughout the closing process.
We spend more time talking about the disbursement procedure here.
Two key components in the closing process are the title commitment and title insurance policy. Prior to closing, the title agency or attorney will have issued to you a title commitment outlining the current status of the property, requirements necessary to transfer title, and possible exceptions that will not be insured in the future policy. This document is the title agent’s or attorney’s commitment to insure the buyer and/or lender in the manner prescribed in the commitment and is used as the guide for the policy preparation. Once the transaction has closed, disbursed, and documents have been recorded, your title agent or attorney will issue the final title policy or policies.
We talk more about title policy issuance in this article.
While the closing itself is often the finish line for the buyer and seller, your title agency or attorney continues to work behind the scenes on the final details of your transaction. These details help ensure proper conveyance and protection for the buyer and lender.
The information provided in Peak Title Professionals, does not, and is not intended to, constitute legal advice. All content is for general informational purposes only and is not intended to provide a complete description of the subject matter. Specific processes will vary based on applicable law. The title and closing process will be handled by a third-party attorney to the extent required by law. Product offerings vary by jurisdiction and are not available or solicited in any state where we are not licensed.
