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Prepare for Closing

What Does a Title Company Do?

Your title company plays an essential role in closing your real estate transaction. Get insight into what we do, who we interact with, and what to expect on your closing day.

We hustle so you don't have to. Closing on your home purchase should feel like a celebration.

A buyer makes an offer on a home and the seller accepts. From that point forward, a title company steps in as the intermediary between all parties to record the necessary legal documents, and ultimately finalize the purchase or sale of a real estate property.

How it works

Step 1: Under Contract

A buyer and seller contractually agree on an offer price and set a closing date.

Step 2: Title Search

The title company performs a search to identify ownership history and any title issues, and then summarizes it in a report.

Step 3: Receive Report

The buyer receives a report, called a title commitment, that highlights any defects, liens, easements, or encroachments.

Step 4: Title Issues?

The title company works to clear the title with the help of the seller and agents.

Step 5: Prepare to Close

The title company schedules your settlement appointment, and then starts gathering the documentation needed to close from several other parties (HOA, lenders, HOI, etc.).

Step 6: Closing Day!

The buyer attends the settlement appointment to review and sign the final paperwork.

Step 7: Recording & Money

Title is transferred to the buyer and recorded with the county in the deed. Plus, money is distributed as outlined in the Closing Disclosure.

Step 8: Coverage Starts

Your title insurance policy is issued shortly after closing day.

Who else is involved?

A title company may work with several different parties as it facilitates the close of your real estate transaction

Real Estate Agents

The buyer's and seller's real estate agents stay in close communication with their clients and help the title company gather information when needed. While a title company is performing a title search and gathering documentation from other parties, the buyer's and seller's agents are coordinating an inspection of the property and, if needed, negotiating adjustments to the final purchase price and closing date. If any title issues surface in the title search, the title company works with the seller and both agents to address the issues.

Lenders

When you purchase a home with a loan, a lender will be involved. The lender ultimately approves and issues your loan, and typically has a set of requirements and conditions that need to be met to make this happen. A title company works closely with the lender to ensure these conditions are met. Lenders have control over and deliver the Closing Disclosure (CD), the document which contains all the numbers related to the purchase; however, a title company plays an integral role in helping the lender prepare the CD.

Homeowner's Insurance Companies (HOI)

Homeowner's insurance, also referred to as hazard insurance, protects your interests should your home be damaged or destroyed. This type of policy is intended for private residences, and typically insures a homeowner against damage to a home or its contents, loss of use, and possibly even liability for accidents that might occur at the home.

Title companies work with homeowners insurance providers to make sure the invoiced amount for the first year is correctly stated on the CD. We also mail the initial check to the HOI company to make sure the first coverage period is paid in full following closing. The fee for the first term is listed on the Closing Disclosure (CD) and should be reflected in your closing costs.

Surveying Companies

As part of closing, some lenders may require a map of the property, called a survey, but other times the buyer can choose to request a survey or not. A surveying company can provide one of two types of surveys: a location drawing or boundary survey.

A location drawing shows the property as inspected, and depicts the locations of any other buildings or structures affecting the property. A boundary survey is more involved and is required to set or redefine a property's boundary line. If you are requesting a survey for a specific purpose, please let your title company know so they're sure to request the correct type.

Homeowners Associations (HOA) & Property Management Companies

If you are purchasing a property within a shared community, the title company reaches out to the homeowners association (HOA), or its property management company, to find out what HOA dues and additional fees are required at closing, and check for any outstanding dues owed by the current homeowner.

Depending on the date of closing, prorated HOA dues may be listed on the Closing Disclosure (CD) as a credit or debit to the buyer or seller appropriately. Additional HOA fees that may be required at closing include a setup or transfer fee charged to the buyer, or a processing, documentation, or resale disclosure packet fee charged to the seller.

County Records Office

Public records that track ownership, use, and assessments for a specific real estate property are filed at county records. When conducting a title search, a title company checks with the county to identify the current homeowner and ownership history for a property. Upon closing, a title company records the transfer of ownership in a deed and then makes it official by filing it with the the county.

What Happens at Closing?

The final step in a real estate transaction is called closing or settlement. It's the big day when the buyer meets with a signing agent to review and sign the Closing Disclosure (CD), loan documents, if applicable, and title company documents; when money is distributed; and when equitable ownership is officially transferred from the seller to the buyer.

The date of closing is usually established up front when the buyer and seller contractually agree on an offer. The seller is not required to attend the closing in-person; but, does need to be available one way or another to sign the necessary paperwork.

Title Forward is proactive about your settlement. We make sure we've done everything possible in advance so your closing day is stress-free.

It's Closing Day

Step 1: Arrive at your appointment

Your signing agent will be there when you arrive to guide you through your settlement appointment. The seller, seller's real estate agent, and your real estate agent may also be present.

Step 2: Sign your paperwork

Your signing agent will present the final paperwork for you to sign. If you have questions, your Closing Advisor will be available throughout the closing.

Step 3: Notary and final review

Your signing agent verifies and notarizes your signature, and then the Closing Advisor double-checks everything.

Step 4: Celebrate your closing

When your paperwork is complete, we'll notify you that everything is approved by all the stakeholders so you can celebrate!

More resources for you:

Closing Disclosure (CD)

Preview a standard Closing Disclosure before your closing day so you know what to expect.

Download Sample Buyer CD >

Download Sample Seller CD >

Closing Checklists

To prepare for your closing day, download and complete these recommended steps.

Download Buyer Checklist >

Download Seller Checklist >

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First American, the eagle logo, and First American Title are registered trademarks or trademarks owned and licensed by First American Financial Corporation and/or its affiliates. First American has no responsibility for the information presented.

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Title Forward is a brand name used to promote the products and services offered in Colorado, Florida, Illinois, Maryland, Nevada, New Jersey, Virginia, Washington and Washington, D.C. through Forward Settlement Solutions, Inc., dba Title Forward, a Delaware corporation; in Texas through Forward Settlement Solutions of Texas, LLC, dba Title Forward, a Texas limited liability company; in Pennsylvania through Forward Settlement Solutions, Inc., a Delaware corporation; in Arizona through Title Forward Agency of Arizona, LLC, a Delaware limited liability company; and in California through Title Forward of California Inc., a California corporation.