Once the closing agent has received a copy of the accepted sales contract, the first step is performing a 60 year title search on the property. The title search will provide warnings of any title flaws that must be dealt with before the property can change hands. The closing agent will order all mortgage/lien or judgment payoffs, obtain tax certifications, HOA fees, as well as any other fees to be collected at closing. Once all fees have been collected, the agent will prepare a settlement statement and work with the lender (if applicable) in preparing the Closing Disclosure, which outlines all fees and costs for both buyer and seller.
Upon conclusion of closing, the Agent will record the deed and mortgage (if applicable) in the corresponding County, disburse funds and prepare the lender and owner final Title Policy.
A typical closing will take around 30-60 minutes, depending on the amount of questions and/or concerns the client has. A refinance or cash purchase will take significantly less time than a purchase with mortgage financing, due to the amount of paper work involved.
The closing generally takes place in the office of either the closing agent, realtor’s office or mortgage company. In addition to the closing agent, all buyers, sellers, real estate agents and sometimes a representative of the lender attends closing.
What to bring:
Both parties are to bring – a valid, government issued, picture ID, such as a driver’s license.
Buyer – You will need to bring a certified/cashier’s check (made payable to Keystone Real Estate Settlement Services, Inc.) or send a wire transfer prior to attending closing, for the total amount of your closing costs provided to you by either your lender or closing agent.
Not necessarily. There are two types of Title Insurance. There is a Lender’s Policy and an Owner’s Policy. Typically, a lender will require the borrower to pay for the Lender Policy. This policy insures the lender has a valid, enforceable lien on the property.
An Owner’s Policy is designed to protect you from title defects that existed prior to the issue date of your policy. Your home is probably the largest investment in your life. For a one-time fee, owner’s title insurance protects your property rights for as long as you own your home. Homeowners’ insurance protects only the structure and the belongings of your home. Getting owner’s title insurance ensures your property rights are protected. If you’re buying a home, owner’s title insurance lets you rest assured, knowing that you’re protected from inheriting possible debts or legal problems, once you’ve closed on your new home.
Absolutely! Title insurance is a way of protecting yourself from financial loss in the event that problems develop regarding the rights to ownership of your property. There may be hidden title defects that even the most careful title search will not reveal. In addition to protecting you from loss, title insurance pays the cost of defending against any covered claim.
The one-time premium is directly related to the value of your home. Typically, a lender’s policy is issued for the amount of the loan and an owner’s policy is issued on the purchase price. It’s an expense you pay only one time when you purchase your home. Yet it provides complete coverage for as long as you or your heirs own the property.
In Pennsylvania, Title insurance is regulated by the Pennsylvania Department of Insurance. There are different rates for a purchase vs. a refinance. In addition to the title insurance premium, most lenders will require additional coverage in the form of policy endorsements and a closing protection letter. Please call for a quote.