What are Settlement Agencies? How do I know if I want to use an Attorney/Title Company as my Settlement Agency for my closing?
The settlement agents job is organize all aspects of the settlement process from ordering the title, and work to clear title to property, to preparing the settlement statement to disbursing funds after closing. No lender or agent can make you use a certain Attorney or Title Company, it is the customer’s decision. The difference in closing with an Attorney is that they can offer legal advice and prepare legal documents such as Deeds, Deeds of Trust and Notes. A Title Company can explain any and all things that are related to the settlement, such as, title requirements, liens, disbursements and taxes. If a Settlement Agent is not an Attorney, then they will have legal counsel who provides any legal services for their customers.
What is Title Insurance? When we receive a contract to do the closing, we order what is called a title search. This tells us what liens are of record, who the record owner is etc., but even though this is done it is not insured. Title insurance provides protection from hidden risks like forged legal documents, errors in indexing at the courthouses, etc., which are all possible unforeseen claims that may be asserted to your property. The policy provides protection from financial loss and payment of all legal cost to defend title claim. You have the option to purchase title insurance when you purchase the real estate. This is a one time fee that not only covers you while you own the real estate but also in the future. While title insurance is not required by law for you to obtain, it is required by lenders when getting a loan. Lender's title insurance only covers the lender. Benefits from having title insurance for yourself are things like when you sell your property you can provide a copy to the buyer so they can give to their title company so that that it cuts down on the timing of their title search and could help eliminate any possible title issues. You can also use it whenever do a refinance , in that can help you get a reissue credit on your lender's title insurance policy.
How long does a Settlement Agency have to disburse? According to State Law known as the Wet Settlement Act, purchases have 48 hours from Settlement and Refinances disburse as soon as possible at the end of the Rescission Period.
How long does closing take? We ask that you allow yourself an hour, however, it depends on how many lender forms there are to be signed how many questions there are, etc. How long does deed signing take? We ask that you allow yourself 15 minutes, however, depends on questions, etc.