Guardian Title Inc.
HOW DOES THE CLOSING PROCEDURE WORK?
The closing process is one that can be difficult to understand and confusing at times. However, with the proper steps taken, the hassle of closing your house can be one that is looked forward to rather than dreaded.
The first step to a great closing is the delivery of the buy-sell agreement to Guardian Title, Inc. The buy-sell agreement is a legally binding contract between purchaser and seller that completely outlines the sale. It also must contain the following information:
the sales price,
the amount of earnest money and who is to hold the monies,
the legal description of the property to be sold and the vesting of the purchaser,
date of the closing and where it is to be held,
as well as any personal property to be included in the sale such as a refrigerator, freezer, mobile home or furniture and the like,
the additional requirements of the sale.
After Guardian Title, Inc., has received the signed buy-sell agreement, a title search of the property is conducted. The title commitment will identify any liens against the property, as well as any title defects. The search is conducted through the offices of the County Clerk and Recorder, the Tax Assessor’s Office, as well as the District Court and, if a business entity is involved in the transaction, the Secretary of State to ensure Good Standing.
We recommend that all purchasers seek an attorney’s advice when choosing their vesting.
WHAT IS INVOLVED IN THE CLOSING ITSELF?
The end result of the closing is the recording of the document transferring interest from seller to purchaser and the disbursement of funds. The closing may be conducted through Fed-Ex or in person at the Title Company office. You will be asked to sign all of the closing papers provided by the attorney’s involved in the transaction and the title company.
The sellers will be required to sign the transfer documents exactly the way that they have been vested in them and the purchasers will be required to sign as they have indicated how vesting should be spelled out in the buy-sell agreement.
Normally, the purchasers and sellers will arrange for separate appointments with the title company as to ensure privacy and time to discuss the documents with their closer. Most purchasers will require financing to purchase and many of the documents contain private financial information.
Finally, the purchaser must deliver to the title company their funds in the form of a cashiers’ check or by wire. If a personal check is accepted, it will only hold up the closing process until all the necessary funds are verified as “good funds”
What are the fees?
All items are negotiable at the time of the drawing of the buy-sell agreement and the signing. However, here is a list of what is normally considered “standard”. These fees will also be listed out on the itemized closing statement commonly called the HUD Statement or the Settlement Statement.
Attorney’s fees to prepare the Warranty Deed or any other necessary documents
Owners Coverage for the Title Insurance
Fed-Ex fees or any fees for delivery of documents.
WHERE ARE THE KEYS?
Keys are not the responsibility of the Title Company to collect from the seller or to give the purchaser. We recommend an independent party to act between purchaser and seller once the closing is complete.
Never count your chickens before they’re hatched. Just because you have signed, it doesn't mean that the funds are available immediately.
IMPORTANT THINGS TO REMEMBER
There are several things that you should remember whenever you’re involved in a real estate transaction.
Always seek and attorney’s advice if you’re uncertain. Guardian Title, Inc. cannot give legal advice.
Guardian Title, Inc. assumes no responsibility for errors and omissions in the buy-sell agreement.
There is no substitution for the trained directions of a real estate agent and an attorney in the transaction. We always recommend seeking either assistance if something is confusing or it you don’t understand the legal jargon.
Good warranty deed + good funds = great closing
WHAT ELSE SHOULD I KNOW?
Guardian Title, Inc. is an independent third party and operates on the written instructions provided by both purchaser and seller through the preparation and delivery of a signed buy-sell agreement.
Because of this, it is important that everything be as correct as it can be to save time and future hassle during your closing process.
Bring at least two forms of identification when you come to sign. We are required by law to maintain records of each person who signs and to take copies of your identification papers and maintain them in a file for security purposes.
Many downfalls can be avoided through proper expectations and preparation for your closing. One common issue is when a seller signs closing papers and then immediately begins to write checks to various debtors without being in receipt of their check from the title company.
If you have any further question about this brochure, please call us during our normal business hours for assistance or help.