Real estate closing is the genuine process of settling and transferring money and real estate title. The closing process can either take place when the representative of both parties gather together in the same room to interchange all the documents or through an escrow agent who works on all the paperwork and sends the finalized documents to the respective parties via email.
During closing, the following activities take place: The Internal Revenue Services department is notified about the process. Traditionally the closing agent notifies the IRS, or in other occasions, the Leander; the buyer signs all the necessary papers and releases the money for the property; the seller signs the deed that legally transfers the property to the buyer; the buyer is given an insurance deed that assures the validity of the property’s title; the deed is signed in the presence of a licensed notary, who confirms that the signatures belong to the designated persons. Finally, once all the paperwork is done, the deed, the deed of trust/mortgage are all recorded in the county recorder’s office.
In most occasions, buyers ask themselves if they need a closing agent, the answer is yes. During a real estate transaction, a good closing agent ensures that the process is successful, efficient, faster and cost-effective. In Southwest Florida, most real estate buyers are not from the region and they prefer to pay in cash, a good closing agent can act on behalf of the buyer to perform the following:
Careful examination of the title: Both the buyer and the lender will require a clear title deed for the property, therefore, upon receiving the purchase agreement, the closing agent should check the title of the property being purchased. The examination of the title deed will help the buyer to know if there are any restriction against the property or its clear for sale.
Title insurance: Once the examination of the title deed is completed, the real estate agent prepares and presents an opinion of the title to the title company for issuance of a title binder, which is initial to obtaining a title insurance. A title insurance protects the buyer and the lender against any future uncertainties that might arise in regards to the title.
Coordination: A good closing agent creates communication lines between all the parties in the real estate closing. For the closing transition to be a success, the agent should be mindful of all the problems to be solved.
Document review: The closing agent must be present on the closing day to review and explain all the documents at the end of the deal.
Pay and record: After reviewing all the necessary documents for closing the transaction, the agent should update the title and record the deed. The agent issues a final remark to the deed company and pays all the accrued premiums.
Importance of title services
Title services ensure that the title to the piece of the estate is genuine and proceeds to issue a title insurance for the property. The title insurance guarantees that the buyer and the lender are protected against any claims or lawsuits. Furthermore, the title service maintains escrow accounts which contain funds used for making the final settlements and closing.