Open Title

Once we have a fully signed (executed) contract, the earnest money will be delivered to the Title Company and the check will be deposited.

At this time, Title will be "Opened", meaning research will begin regarding the ownership history of the property.

There are two types of title insurance:

1. Coverage that protects the lender for the amount of the mortgage
2. Coverage that protects your equity in the property.

Both you and your lender will want the security offered by title insurance. Why?
Title agents search public records to determine who has owned any piece of property, but these records may not reflect irregularities that are almost impossible to find. Here are some examples: an unauthorized seller forges the deed to the property; an unknown, but rightful heir to the property shows up after the sale to claim ownership; conflicts arise over a will from a deceased owner; or a land survey showing the boundaries of your property is incorrect.
Title insurance, usually purchased by the seller on behalf of the buyer, will safeguard you against problems including those events an exhaustive search will not reveal.

Title insurance covering the lender is typically required and purchased by the buyer.

 

Receive Commitment for Title Insurance

The title company will provide you with a title commitment within 20 days.

The title commitment identifies the amount of the title policy, the exceptions from coverage, and the items that will need to be resolved before the title company will issue the title policy.

You need to pay close attention to the items identified on Schedule C. If there is a tax lien or a Mechanics lien attached to the property, they will need to be resolved and removed before you can close on the property.

Survey Scheduled

If a new survey is needed, one will be scheduled by your lender or the title company. The survey will tell you about property easements, if there are any encroachments from neighboring properties, building set-back lines, and more.

If you are getting a home loan, you will be required to have a survey for the property.