Tuesday, October 30, 2012

When is your real estate settlement really finished?


Don't get caught in this trap!  

So you have just left the settlement table and finished signing all the paperwork looking forward to being finished with the process of buying your new home.  You are all done and ready to focus on owning your new property.  Thoughts of moving in, finding a renter, things you want to improve or work on could be in the forefront of your mind after settlement occurs.  Most people never give it a second thought after closing but in today's day and age you need to remember a few major details still need to be memorialized and followed through with the finalize the purchase of your new home.

Your title company still needs to do the following:



  • Send monetary disbursements to all parties due money not paid at the table.  This includes the payoff for any existing mortgages being paid off and released, homeowners association dues, water bills, inspection invoices, etc...
  • Recording your new deed and deed of trust reflecting the new ownership and title interests in the property, including payment of recordation fees, transfer taxes and property tax.
  • Paying for the title insurance to the Title Insurance Company issuing your title insurance polices.
  • Sending you copies of your executed documents from settlement if they didn't provide that to you at the settlement table.
  • Confirming the receipt of payment by original lender, obtaining or ensuring release of payoffs are recorded in the appropriate county land records.
  • Following up with the recording office to confirm your ownership interest is properly reflected with the county.
You need to realize all of this work is done after settlement and you should follow up with your settlement company to make sure the transaction is complete after a reasonable period of time.  Ask your title insurance   agent/settlement company to provide you with the following documents for your records after your settlement is concluded to be sure they finished the job and your interests in the property are protected.

  • Deed - Deed with recording stamp by the county in which the property is located
  • Release - A copy of the release of any previous/existing mortgages that were paid off at closing
  • Closing Package - A copy of the documents that you signed at closing for you records


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