Closing the Transaction
Once an agreement has been reached between the buyer and the seller, your Executive Group agent will continue to be your greatest advocate. Your agent will order a search of the title, which identifies proof of ownership and the marketability of the property. A title company will look for defects in the title to the property by examining deeds, wills, tax records, liens, mortgages, bankruptcies and other public records. This search will reveal if there are any debts owed against the property and will determine the condition of the title. This cost of this search is usually paid for by the seller at the closing.
The title company will provide title insurance, which protects the buyer against any losses that may arise from defects that exist in the title prior to being transferred. There are number of types of title insurance policies, which your Executive Group agent is prepared to define. The premium for the policy is paid by the buyer at the closing and the Closing Statement will identify this and all other amounts owed by the buyer and by the seller.
The Role of the Title Company
The closing of the transaction involves the transfer of title to the buyer and the receipt of the purchase price to the seller. A closing officer, the representative of the title company, will review the documents necessary to consummate the transaction; title insurance policy, surveys, and the property insurance policies. This professional will also prepare the closing settlement statement and will conduct the proceedings.
The closing officer will produce a Closing Settlement Statement which itemizes all of the charges to be paid by the buyer and the seller at the time of closing: broker's commission, attorney fees, recording expenses, title search and insurance, loan origination fee, appraisal fees, survey fee, earnest money deposit, prepaid real estate taxes and any special assessments.
Your Executive Group agent will assist you in understanding this detailed form and will explain to you the pro-ration of expenses and will help you determine how much you will net from the sale.