What does a settlement company do?
The settlement company works closely with all parties involved in the real estate transaction including realtors, lenders, and insurance companies. Most information needed for closing is obtained from these sources. It is the settlement companies job as a neutral third party to fairly handle the transaction, making sure that the purchaser receives clear title to the property and that the seller is fairly compensated pursuant to the terms of the purchase contract. 

What is a title?
A title is the foundation of property ownership. It is the owner's right to possess and use and transfer the property.

What is a title search?
A title search is a detailed examination of the historical records concerning a property. These records include deeds, mortgages, court records, and many other documents. The purpose of the search is to verify the property owner's right to sell or finance the property and to discover any claims or defects to the property.

What is title insurance?
Title insurance is a policy of protection against loss due to hidden defects in the title that can not be revealed by the title search.

How does title insurance protect my investment if a claim should arise?
Title insurance, in accordance with the policy, will assure you legal defense, including paying court costs and related fees. If the claim proves valid, you will be reimbursed for your actual loss up to face amount of the policy.

What can I expect during the closing?
The actual closing process begins the moment the purchase contract is signed. Once the contract is received by the Settlement agency, a title exam is ordered. The settlement agent must collect and provide information to the lender prior to closing about the title, insurances, taxes, inspections and fees involved. Once this is received, the lender will send off the loan closing package. This is normally received the day before or the day of closing. The settlement agent then prepares the closing package along with other paperwork and legal documents from an attorney's office for the settlement. After the signing of all documents, the settlement agent records the documents at the courthouse. After it has been recorded, the settlement agent disburses the proceeds to the seller and pays all parties involved as set out on the settlement statement.

What fees should I expect?
The fees are broken down and detailed on a sheet called the settlement statement or "HUD." The statement is carefully examined at the time of closing by all parties involved. You will be provided with a signed settlement statement along with copies of all other documents involved for your personal records.  The purchaser can usally expect to see loan fees, recordation fees, recordation taxes, title and homeowner's insurance, courier fees, and homeowner's association dues if applicable.