Steps of Closing
Closing a property deal can be a long and stressful exercise that involves lots of steps and procedural formalities.
Starting the process
A sales contract is signed by the buyer and seller and delivered to the closing agent, usually with a deposit. The escrow is accepted by the escrow agent, usually by written notation on the contract. The escrow agent starts the closing process by opening a search of the records. 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 additional legal papers are ordered.
Title search and examination
This is a search made of the public records. Records searched include deeds, mortgages, paving assessments, liens, wills, divorce settlements, court records, home owner associations, etc. and other documents affecting title/ownership to the property/asset. Title examination/examination of the records is the examination of the documents found during the title/ownership search that affect the title to/ownership of the property/asset. This is when verification of the legal owner is made and the debts owed against the property are determined. Upon completion of the search and examination, a commitment/preliminary report is prepared and reviewed and sent to interested parties.
Document Preparation/Review of Instructions/Review of the Records and Documents
The closing officer reviews the instructions/requirements to transfer ownership, reviews instructions from all parties to the transaction, reviews legal and loan documents, assembles charges, and prepares closing statements, addenda, and schedules the closing.
Settlement/closing the transaction
Escrow/settlement agent oversees closing of the transaction. Seller signs the deed/transfer of ownership document and closing affidavit. Buyer signs the new note and mortgage when applicable. The old loan is paid off. Seller, real estate professionals, attorneys and other parties involved in the transaction are paid at the closing.
Before or after the signing has been completed, the escrow/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 country in which the property is located. Title insurance policies are prepared and sent to the new lender and to you when applicable. This all happens without any further actions by the buyer or seller.
Service Escrow Inc.
is a full-service Indiana real estate firm that is staffed by local real estate experts.