How the the transaction works

Although every deal is different, most transactions follow a predictable sequence.

Once there is an accepted offer (or a lender requests it for a refinance), the title company opens the file and gathers basic data:

• Parties’ names (legal names matter)
• Property address and legal description
• Purchase price (if applicable)
• Lender information (if financing)
• Requested closing date

The title company researches the county records and issues a title commitment. This typically includes:

• The current owner of record
• The legal description being insured
• Requirements to close (for example, payoff of an existing mortgage)
• Exceptions (items that will not be insured or are specifically listed)

This is the “quiet work” phase. The title company coordinates with sellers, lenders, municipalities, and others to clear requirements, such as:

• Getting a payoff statement for the seller’s existing loan
• Obtaining missing releases
• Verifying tax status and special assessments
• Clearing judgment liens (if required)
• Confirming authority for signing (estate, trust, LLC)

The title company assembles the financial picture:

• Purchase price and deposits
• Loan amounts
• Payoffs
• Prorations (taxes, rents, HOA dues)
• Fees (title, recording, municipal charges)
• Who pays what (based on the contract and lender rules)

You will usually see this as a Closing Disclosure (CD) (in financed deals) and/or a settlement statement.

At signing:

• The buyer signs loan documents (if applicable)
• The seller signs the deed and related affidavits
• The title company confirms identification and notarizes documents
• Funds are received (wire or cashier’s check) and held until authorized to disburse

After signing:

• The deed and mortgage are recorded with the county Register of Deeds
• The seller’s prior mortgage is paid off
• Other required payoffs are made
• Net proceeds are delivered to the seller
• Title insurance policies are issued after recording is confirmed