The first part of the closing process will be for us to conduct a title search, which is a search of the public records to determine if there are any title issues or problems that will prevent us from issuing a title policy. Once that search is completed, we will issue a “Title Commitment,” which is the document stating the terms upon which a title policy will be issued. There may be certain “requirements” or items that need to be completed prior to the closing. These might include things such as one of the parties providing documents related to an entity that is buying or selling the property. On the other hand, these might be title defects that need to be cleared before closing. The Title Commitment will also list the “exceptions” or things that are not covered by the title policy. Every policy has exceptions and these may be standard things. With that being said, you will always want to review the exceptions and contact us with any questions.
Payoffs and Loan Documents
Once the title commitment has been issued, we will being the process of obtaining payoffs for any loans that are to be paid off as part of the closing. We are relaying on third parties to provide this information so it can be very quick or sometimes can take a little while. Additionally, if the buyer is obtaining a loan, we will need to obtain documents form the lender prior to closing. Once both of these processes are complete, we will prepare the final documents for closing, which can often be signed electronically or via video notary.
Signing Documents and Funding
As the seller, there will be several documents that you will need to notarize as part of the closing process. Many times you can do this online using a video conference notary. If not, you can come by our office or we can send the notary to you.
You do not need to worry about signing your documents early as we will hold the documents in escrow and will not record anything until all parties have signed and the money is fully cleared. Therefore, you can complete your documents as soon as they are ready without waiting for the closing date.
Most of the time, the buyer does not need to have any documents notarized as part of the closing process. If that’s the case in your closing, you can e-sign your documents instead of coming to our office.
We want to make it as easy as possible for you to deliver your funds for closing. In other words, it doesn’t help to have an online closing process, if you still have to drive to our office to deliver funds.
Unfortunately, closing funds can not be delivered online because of the transaction limits. With that being said, you have the option of wiring funds to our office or you can deposit a cashier’s check or cash at any of the over 3,000 U.S. Bank Location in the United States. Instructions on how to wire funds or deposit funds at a U.S. Bank location will be provided to you in your closing documents. You can locate your nearest U.S. Bank location by going to Location Search (usbank.com).
The deed (or document that transfers ownership) will be sent for recording with the county on the same day that we have received all documents and funds for the closing. In many instances, the deed may be accepted for recording that same day. In other instances, it may take up to a week. This is largely out of our control and depending on the method of delivery (some counties don’t accept e-filings) and the workload of the county recorder. That being said, the buyer’s ownership of the property is effective as of the date the deed is delivered regardless of when the deed is recorded.
We will distribute any closing proceeds within one (1) business day of all funds clearing our bank accounts. Please note that in many instances, this is the business day following closing. With that being said, it may take several days post closing for the funds to clear and we are ethically prohibited from distributing any funds until that process is completed. Funds can be delivered to the seller either via wire transfer or overnight check. We do not charge additional fees for either option; however, your bank may charge additional fees for a wire transfer.
Funds for any payoffs will be sent within two (2) business days of funds clearing. Please note that once received, the lender has up to thirty (30) days to record the lien release. Therefore, it might be 30-45 days before the closing process is fully completed. We will continue to track and monitor the lien releases to ensure they are accurately recorded. Once all liens have been released, we will issue a title policy to the buyer, which will be sent electronically via email, unless otherwise requested.