Once a purchase and sales agreement is signed by the buyer and seller, it will be delivered to the title company as the closing and escrow agent. Deposit funds are held in escrow. Upon the submission of the purchase and sales agreement and order for title insurance, the title company begins the title insurance process by reviewing tax information, loan payoffs, surveys (if necessary), homeowner/maintenance fees, inspection and property reports, hazard and other insurances, and title records from the County Clerk’s Office.
The title search and review begins with a search of the real property records in the County Clerk’s Office, County Assessor’s Office, and additional records that are located in the courthouse. Real property records reviewed include deeds, mortgages, easements, rights-of-way, property assessments, liens, divorce decrees, wills, and probate decrees. All of these documents reviewed help the title examiner gain an understanding of the status of title to the property and ownership. Once the title search and review is completed, a title commitment and preliminary report is prepared and sent to the buyer, seller, and other interested parties (if authorized).
Upon completion of the title review and search, and if approved by the buyer and seller, the title company will begin preparing for closing. Closing requires cooperation with the lender, including a review of the lender’s instructions, requirements, legal and loan documents, closing statements, and scheduling closing. On the scheduled closing date, the seller will sign the deed and additional closing documents. The buyer will sign the new promissory note and mortgage. Funds from closing will be used to pay off seller’s loan on the property (if applicable), then seller, real estate agents, and attorneys, and other parties will receive their respective amounts if their services have not been compensated for. The deed is recorded in the county in which the property is located and the buyer and lender receive all closing documents, including the title insurance policies.Get Started >