When all negotiations and inspections are complete, and the buyer has committed to a loan, the closing date is near. In buying and selling practice, it is important that you select a reputable title company that will take care of preparing all the necessary documents required at closing and handle the closing on the real estate deal. When you do business with a good company, the closing process is quick and painless. When you are in the process of selecting a company, there is no need to rush to decide which company to choose. When you have already decided to work with a certain company, you should know the role they play in the sale of real estate.

So what should you expect from the title company? Well, if you have no idea, here is a summary of what you can expect from the company.

The company is in charge of constituting the documents that specify the ownership of a property. Even if it’s just a summary, the company will make sure the property’s location and details are accurate. This document has the details of the legal owner of the property. Unsettled taxes and liens on the property are also reflected on the title summary.

The company provides the opinion letter and the Title Insurance Commitment. The latter is issued by the company to the lender, since this document is necessary to complete the process. During title filing, the company ensures that the property is free of any inspection issues. In the event that unexplained issues arise, the seller will need to submit the necessary documents, such as divorce orders, death certificates, declaration documents, among others. The company has to do this to ensure that the buyer gets a clean title to the property.

When the title is set, the business is ready to schedule a closing session. Both parties involved in the real estate transaction, the buyer and the seller, will be present at the closing to sign the documents.

After that, the title company will issue a document called a HUD-1 Settlement Statement. This document lists all fees and charges included in the real estate transaction.

There are several types of deeds to buyers’ ownership rights, and the typical one used in the sale of residential property is called a General Warranty Deed. The title company is in charge of the deed. They are also responsible for delivering the seller’s affidavit, which is a list of questions for the seller. This questionnaire was specially created to ensure that there are no issues with the information since the company conducted its investigation.

The company may disclose information about your transaction, and this is called a privacy statement. They may have to disclose certain information at unavoidable points, such as declaring the sale price of the property to the county. Don’t stop reading this statement.

There are other documents that the title company handles. The IRS W9 will report to the IRS indicating the amount received from the transaction. The payment agreement states that the title company depends on the payment statement being accurate and that you agree not to hold them responsible if something is wrong with the payment statement.

It is important to find a reputable title company. Expect a smooth closing process when dealing with a good title company. So do not rush when deciding who to choose.