When we receive the contract of sale we first order a title search, a 60 year inspection of the land records showing the history of ownership of the property. This is done by a title abstractor on our behalf. We then examine that title search to verify that all liens are paid in full and released, that there are no judgments that attach, and that all covenants, easements and rights of way are appropriate to the property you are purchasing. An easement allows someone else to have access to the property (not your home) for example, the meter reader may come onto your property to read the meter and the utility companies may repair lines on your property. A covenant is promise to do or not do something. You may be moving into a community that does not allow you to keep commercial vehicles on your property. These would be included in the HOA/Condo docs that you will get from the listing agent. If you are purchasing a bank owned (REO) property, we will examine the entire foreclosure file to make sure that the foreclosure was done properly. We must even look at signatures to make sure that they are the same from document to document!
Your lender might require a survey of the property or you may want one. Please call FIRST CLASS TITLE to discuss survey options.
We must prepare a title insurance binder for your lender. This is our commitment to insure your lender once settlement occurs. Title Insurance is also recommended for Purchasers. Please see below for more information on title insurance.
W will prepare a draft HUD 1 Settlement statement (the document showing the financial details of your purchase and loan) for your lender. Your lender will use that to assist in preparing your Good Faith Estimate (GFE) showing what your loan will cost and how much money you will need to bring to settlement.
FIRST CLASS TITLE will schedule your settlement with your lender after conferring with you to determine the best time for you. Remember that the settlement date is the date you agreed to in the contract. This cannot be changed without a written addendum signed by all parties. If you are buying a bank owned property, be aware that most banks charge a per diem (daily penalty) if settlement does not take place by the contract date.