Q. What is closing?

A. Closing or 'settlement' is the process of completing a real estate transaction. During closing deeds, mortgages, leases or other required instruments are signed or delivered. Furthermore accounting between parties takes place, monies are disbursed, and documents needed for recording are obtained.

Q. What do I need to bring to closing?

A. Each party needs to provide official photo-ID (e.g. drivers license or passport). If you are required to bring funds to the closing they should be in the form of a cashiers, treasurers, teller's check, money order, or certified personal check (made payable to WCTC Title & Escrow Services).

Q. How long will closing take?

A. Usually closing will take about 30-45 minutes for a purchase, and 30 minutes for a refinance, but this can vary.

Q. What is a HUD Settlement Statement (HUD-1)?

A. This is a summary of the financial portion of the real estate transaction. The HUD lists the purchase price, loan amount and closing costs for both buyer and seller and shows all pro-rations and sums to be disbursed by the title company to all parties.

Q. What is a title?

A. A title is the owner's right(s) to real property.

Q. What is a title search?

A. A title search determines, based on a search of the public record, who owns a specific piece of property and what liens or other interest effect that property. Documents searched include court records, property and name indices. Additionally, the sellers right to transfer ownership is verified, along with the claims, defects or other rights that may affect the property.

Q. What kinds of problems can a title search reveal?

A. Examples of 'problems' would be: unpaid taxes, unsatisfied mortgages, judgments against the seller and restrictions on the land.

Q. What is title insurance?

A. Title insurance is a contract to indemnify against losses arising through defects in the title to real estate.

Q. Why do I need title insurance?

A. Owning real estate is one of the most precious values of freedom in this country. Get the assurance that the property you are buying will be yours. Even though the title company has searched the record to discover title defects and eliminate them prior to closing, many types of title defects aren't necessarily showing of record, and therefore aren't discovered by the title company's search. Other than your mortgage holder, no one else should have any claims or restrictions against your home.  Title insurance eliminates any risks and losses caused by faults in title from an event that occurred before you owned the property.

Q. What can cause a title defect?

A. Any number of issues that remain undisclosed despite even the most meticulous search of public records can make a title defective. These issues are dangerous because they usually do not surface for many months or years after the property is purchased. In addition, the homeowner may be forced to spend substantial amounts of money on legal defense against such issues and still may lose the property. An Owner’s Policy of Title Insurance purchased from WCTC provides complete protection from the following in addition to other hidden defects:

• Fraud - false claims of ownership
• False representation
• Forged documents
• Creditor Claims
• Incorrect Legal Descriptions
• Errors in tax records
• Improper deeds - by persons of unsound mind, or minors
• Deeds delivered after death, or without the grantor consent
• Unsettled estates
• Liens - for unpaid estates, inheritance, income, and property taxes
• Irregular court proceedings
• Defective foreclosures
  
  

Q. What are the different types of title insurance?

A. Lenders Coverage and an Owners Coverage. The lenders policy is usually a condition of the loan and protects the mortgage lender's security interest in the property up to the value of the policy. The owner's policy covers the purchase price of the property and protects the interest of the real estate owner. When purchasing a property, where you are also creating a mortgage, the Owner's & Lender's Policies are issued simultaneously. The title premium is based on the greater of the purchase price or the mortgage amount. You will need both types of coverage.

Q. How long does coverage last?

A. You are covered for as long as you or your heirs own the property. Even though the property may be sold, you may still have a legal obligation by virtue of the warranties in the deed conveying the property. The policy insuring you would still be in effect.

Q. What happens after settlement?

A. After settlement, the buyers and sellers job is over. However, WCTC Title & Escrow Services will continue working in order to:

•    Audit the settlement sheet and review all documents.
•    Comply with the lender's written instructions in returning their paperwork.
•    Record the deed, mortgage and other documents with the County.
•    Disburse funds as appropriate.
•    Issue the title insurance policy and any endorsements required.