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• publish finished title commitments to
customer, real estate agents, and lender
• order tax, water, sewer and trash certificates
• order Homeowners Association statements
• order U&O, if requested
• issue Insured Closing Protection letter to
lender
• issue tax certification to lender
• prepare estimated HUD for customer
closing
• prepare final HUD
• notarize appropriate documents
• review executed mortgage packet
• issue checks to appropriate parties
• send out payments for all payoffs and bills
paid at closing
• record documents at Court House
• issue Title Policy
The costs for title insurance and settlement services vary greatly by state, and there is almost no uniformity among the states. Often times the process of determining your costs for going to settlement on your purchase or refinance, or your “closing costs,” can be one which is frustrating, confusing, and misleading. Not with Liberty Land Abstract. We take the process of quoting your costs extremely seriously, and will make every effort to provide you, your realtor, or your loan officer with the most accurate quotes possible. If you are working with a realtor or loan officer, they will have already received a quote from us.
What should we do to prepare for the settlement?
What do I need to bring to settlement?
How long will settlement take?
Who attends settlement?
Do I need to be present at settlement?
Who does Liberty Land Abstract represent at settlement?
What happens at settlement?
What is a HUD Settlement Statement (HUD-1)?
What is pro-ration of property taxes?
What is pre-paid interest?
What is an Escrow?
What is closing?
Closing or 'settlement' is the process of completing a real estate transaction. During closing deeds, mortgages, leases or other required instruments are signed or delivered. Furthermore accounting between parties takes place, monies are disbursed, and recording of all pertinent documents is completed.
What do I need to bring to settlement?
Each party needs to provide official photo-ID (e.g. drivers license or passport). If you are required to bring funds to the settlement they should be in the form of a cashiers, treasurers, teller's check, money order, or certified personal check (made payable to Liberty Land Abstract.)
How long will settlement take?
Usually settlement will take about one hour for a sale, and 40 minutes for a refinance, but this can vary.
Who attends settlement?
For a sale, the buyers, sellers and their respective attorneys and real estate agents will attend. Most lenders forward their documents and instructions to the title company without sending a representative. For a refinance, it is typical for the settlement officer and buyers to attend.
Do I need to be present at settlement?
We prefer you to attend personally. When this is impractical, it may be possible to prepare a 'Power of Attorney' which allows someone else to sign the documents on your behalf. The Power of Attorney document must be reviewed and approved by the title company (and lender if Power of Attorney for borrowing) prior to settlement and the original Power of Attorney will have to be recorded.
Who does Liberty Land Abstract represent at settlement?
Liberty Land Abstract does not represent any one party. The transaction has already been negotiated and we are there to ensure the terms are complied with to the extent they affect the insurability of title or are required by the lender. For a refinance, we explain your lender's documents to you and ensure their instructions are properly executed.
What happens at settlement?
Liberty Land Abstract completes the settlement in accordance with the terms and conditions of the Agreement of Sale and mortgage company's instructions. We also prepare the final HUD-1 (settlement sheet), and makes all of the disbursements in accordance therewith, and forwards the executed documents to the appropriate parties.
What is a HUD Settlement Statement (HUD-1)?
This is a summary of the financial portion of the real estate transaction. The HUD lists the purchase price, loan amount and closing costs for both buyer and seller and show all pro-rations and sums to be disbursed by the title company to all parties.
What is pro-ration of property taxes?
This is the process of crediting the buyer or seller for their share of real estate taxes either paid or owed as of the settlement date.
What is pre-paid interest?
This is interest due from the date of a loan closing to the first day of the following month. Most loans require payments to be due on the first day of the month. Each monthly payment reflects the principal and interest due on the loan for the previous month. Loans closing in the middle of the month will need to be prorated.
What is an Escrow?
An escrow is an arrangement with a third party, who holds funds and/or legal documents on behalf of the buyer or seller, and distributes them according to the instructions given by the buyer or seller. Often a buyer is required, or elect, to escrow 1/12th of the annual taxes and insurance. The amount of tax escrow needed at the time of settlement is determined by the first mortgage payment date and the date by which the taxes may be paid at the discount rate.
What does title insurance protect against?
Isn't a deed proof of ownership?
The property I want to purchase had a title search done within the past year. Do I need another one?
What are the different types of title insurance?
How much does title insurance cost?
How long does coverage last?
What is title insurance?
Title insurance is a contract to indemnify against losses arising through defects in the title to real estate.
What does title insurance protect against?
Some of the most common problems covered include: Unfiled or unpaid liens; Inadequate legal descriptions; Mistakes in legal documents; Fraudulent deeds, mortgages, etc.; Undisclosed or missing heirs; Deeds by persons of unsound mind.
Isn't a deed proof of ownership?
No. A deed is simply a document transferring the right of ownership, whatever that right may be. For example, the property may have changed hands many times since the deed was issued. In addition, liens and claims outstanding against the title won't be shown on a deed.
The property I want to purchase had a title search done within the past year. Do I need another one?
Yes - Any number of events could occur in a year which could affect your title.
What are the different types of title insurance?
Lenders Policy and an Owners Policy. The lenders policy is usually a condition of the loan and protects the mortgage lender's security interest in the property up to the value of the policy. The owner's policy covers the purchase price of the property and protects the interest of the real estate owner. When purchasing a property, where you are also creating a mortgage, the Owner's & Lender's Policies are issued simultaneously. The title premium is based on the greater of the purchase price or the mortgage amount. You will need both types of coverage.
How much does title insurance cost?
Title insurance is regulated by the state, and is dependent on the purchase price or mortgage amount. In either case it is a one time fee of a small fraction of the insured amount. Use our rate calculator to determine an estimate of your premium.
How long does coverage last?
You are covered for as long as you or your heirs own the property. Even though the property may be sold, you may still have a legal obligation by virtue of the warranties in the deed conveying the property. The policy insuring you would still be in effect.
Why is transferring title to real estate so unique?
What is a title search?
What kinds of problems can a title search reveal?
Are there any problems that a title search cannot reveal?
What are Liberty Land Abstract’s responsibilities in addition to conducting the title search?
What is a title?
A title is the owner's right(s) to possess and use a real property.
Why is transferring title to real estate so unique?
Unlike buying a car or television, land title is permanent. While the function of most other forms of insurance is to protect you against losses arising out of unforeseen future events, the primary purpose of title insurance is to eliminate risks and prevent losses caused by defects in the title arising out of past events.
What is a title search?
A title search determines based on a search of the public record, the property owner's rights. Documents searched include court records, property and name indices. Additionally, the sellers’ right to transfer ownership is verified, along with and claims, defects or other rights that may affect the property.
What kinds of problems can a title search reveal?
Examples of 'problems' would be: unpaid taxes, unsatisfied mortgages, judgments against the seller and restrictions on the land.
Are there any problems that a title search cannot reveal?
Certain defects which the title search may not reveal, such as fraud, mental incompetence, and clerical errors.
What are Liberty Land Abstract's responsibilities in addition to conducting the title search?
In addition to correcting any minor title problems (i.e. taxes owing), Liberty Land Abstract will work with your lender and provide them with a copy of the Title Commitment and the annual property tax amount as well as ensuring their detailed closing instructions are followed. We will also ensure the seller’s tax payments are up to date.
After settlement, the buyers and sellers job is over. However, Liberty Land Abstract will continue working in order to: Audit the settlement sheet and review all documents; Comply with the lender's written instructions in returning their paperwork; Record the deed, mortgage and other documents with the County; Disburse funds as appropriate; Issue the title insurance policy and any endorsements required.
Copyright 2005. Liberty Land Abstract, LLC