The Buying Process
While no two transactions are identical, the process of buying a home typically follows similar paths.
There are actually three different timelines taking place during the buying process, I've separated each of
them, however they are running concurrently during most of the process.
The Title Process
Open Title Order.
The title company will open a file once they have been notified of an executed contract.
The title company will receive a copy of the contract and the earnest money, if applicable. Earnest money is
deposited almost immediately, so make sure you've moved money to the appropriate account ahead of time before writing your check.
Title Search.
The title search determines that the person selling the property has the right to sell it and that
you are getting all the rights to the property that you are buying. In most cases title insurance
is involved, so the title company will research the insurability of the title. The title search
involves researching the chain of title, the history of the ownership of the property, who bought
it and sold it and when. The tax search determines the current status of real estate taxes against
the property. A judgment and name search is also conducted to determine if there are any unsatisfied
judgments against the seller or previous owners which were in existence while they had title to the property.
Title Commitment.
When the title searches have been completed, the title company issues a commitment to insure, stating
the conditions under which it will insure the title. The buyer and seller and the mortgage company
can proceed with the closing of the transaction after clearing up any defects in the title which may
have been uncovered by the search and examination. The title commitment is issued to the buyer, seller,
lender, and agents involved in the transaction.
Survey.
Typically, if the seller didn't provide a copy of a previous survey, the title company will order a new one.
The survey is a drawing of the measurement of the boundaries of land, the placement of the house on the land,
if any, along with physical attributes such as fences, driveways and sidewalks, along with building lines
or setbacks and easements. Currently buyers are allowed to use the seller's previous survey, provided that
there have been no changes to the property (i.e. fences, room additions), subject to lender approval.
Document Preparation.
The title company prepares documents for the closing such as the settlement statement and disclosures;
they prep the loan documents received from the lender, request payoffs from lien holders and documents
required to clear title.
Closing.
Same as the "At Closing" step in the
"With your Realtor®" steps above, the buyer and
seller sign all required documents at closing. The buyer and seller receive copies of everything they
signed at the closing.
Funding and Recording.
After all documents have been signed and funds have been received, the title company disburses funds to
the appropriate parties and records the legal documents with the appropriate municipalities, and acquires
releases from lien holders after they are paid.
Title Policy Issued.
After closing the buyer receives a copy of the title policy and copies of their recorded documents for their records.
The above is a bit more than a "nutshell" but it's not all inclusive either. After reading this overview,
you should have a better idea of everything that is going on during your purchase. Of course I will be around to
answer any questions you might have too. This is just one of the ways that I try to Make It Easy!
Printer-friendly PDF of The Buying Process
