Beginning the Process
A sales contract is signed by the buyer and seller and delivered to the closing agent, usually with a deposit check. The escrow is accepted by the escrow
agent, often by written notation on the contract. The escrow agent starts the closing process by opening a title order. The file begins to be processed.
Tax information, loan payoffs, survey (if necessary), homeowner/maintenance fees, inspections/reports, and hazard and other insurances, as well as legal
papers are ordered. Then, a title search is ordered.
Title Search and Examination
A search is made of the public records, which include deeds, mortgages, paving assessments, liens, wills, divorce settlements and other documents affecting
title to the property. Title examination is the examination of the documents found during the title search that affect the title to the property, verifying
the legal owner and whether debts are owed against the property. Upon completion of the search and examination, a title commitment/ preliminary report is
prepared, reviewed, and sent out to interested parties.
Document Preparation and/or Request to Produce
The closing agent reviews the new lender’s instructions and requirements, reviews instructions from other parties to the transaction, reviews legal and
loan documents, assembles charges, prepares closing statements, and schedules the closing.
Settlement or Closing the Transaction
The escrow or settlement agent oversees closing of the transaction in which the seller signs the deed and closing affidavit. The buyer signs the new note and
mortgage. The old loan is paid off. Then the seller, real estate agents, attorneys, and other parties present at the closing of the transaction are paid.
After the signing has been completed, the escrow or settlement agent will forward payment to any prior lender, and pay all parties who performed services in
connection with your closing (if they have not been paid). The transaction documents are recorded in the county in which the property is located. Title
insurance policies are prepared and sent to the new lender and to you. This all happens without any further actions by the buyer or seller.