WHAT DO TITLE COMPANIES DO?
Title companies perform an extensive search of the public records to determine whether there are any adverse claims to the subject real estate. If any such adverse claims exist, those claims are either eliminated or "cured" prior to the issuance of a title insurance policy or their existence is excepted from coverage. In Tennessee, title companies also act as a liaison between the lender, the real estate agent and the buyers and sellers in collecting necessary documentation, ensuring adherence to the lender’s title instructions, making arrangements for proper payment and distribution of funds, closing the transaction, and issuing a title insurance policy.
WHAT IS A CLOSING?
Closing (also called settlement) is the legal transfer of property ownership. Usually, but not always, possession is transferred at closing. All necessary documents are prepared and disbursement of money is made for the purchase or finance of real estate and related costs. The settlement agent causes the deed or deed of trust to be recorded in the public record.
WHAT IS TITLE INSURANCE?
A title insurance policy offers protection against claims or challenges relating to title or ownership interest in real property. In a typical transaction, there are two (2) policies involved: a Loan Policy, which protects the lender, and the Owner's policy, which protects the buyer and/or owner.
WHY DO I NEED TITLE INSURANCE?
Owner’s coverage provides you with a legal defense and, if your title should fail, reimbursement of the equity in your home up to the face amount of your policy. It also covers attorney’s fees charged to defend the title to the property. Title insurance protects against: forgery, fraud in connection with the documents, undisclosed heirs, wills not correctly probated, mistakes in interpreting wills and trusts, erroneous surveys, confusion of names, clerical errors when recording documents, and real estate tax omissions and errors.
WHAT DO I NEED TO BRING TO CLOSING?
Identification will be needed at the closing: A government-issued identification card such as a driver’s license or a passport. In some cases, two different forms of identification are required.
Additional paperwork may be required at the closing, such as proof of homeowners insurance, the results of a home inspection and other legal documents needed for the transaction.
Your spouse should accompany you if you are married. A form of identification from your spouse will be needed.
A cashier’s check should be brought to the closing or or a wire transfer prior to closing in the total amount of the down payment and closing costs. Your mortgage lender will provide you the final amount prior to the closing, allowing you to prepare the check from the bank .
WHAT DOCUMENTS ARE SIGNED AT CLOSING?
You will be signing many different documents on the day of your closing, including:
Title Transfer: This document, usually in the form of a Warranty Deed, transfers the ownership of the home from the previous owners to you.
Closing Disclosure: This document details the fine print of your mortgage loan, and your mortgage company by law is required to provide you with it at the closing.
Title Insurance: Title insurance protects you as well as your lender from any issues regarding the title of your home.
Mortgage Loan Documents: Typically the Promissory Note and Deed of Trust. These documents will finalize the approval of your loan and will give you the necessary financing to purchase it.
HOW MUCH DOES TITLE INSURANCE COST?
The cost of title insurance depends on the value of the home you are purchasing and the geographical area in which it is located. Title insurance, unlike most other types of insurance, is a one-time premium that is directly related to the value of your home. It is a one-time only expense, paid when you purchase your home, yet it continues to provide complete coverage for as long as you or your heirs retain an interest in the property.
HOW IS RIVERBEND TITLE DIFFERENT?
In Tennessee, unlike in many states, real estate closings can be conducted by certain qualifying non-attorneys, and title companies can be owned and operated by non-attorneys. While many banks, builders, developers, and commercial real estate brokers will require that attorneys handle their closings, at Riverbend Title, highly trained, licensed attorneys will coordinate and conduct closings for all of our clients.
Riverbend Title utilizes state-of-the-art software and technology to manage our clients' escrow and title service needs, including VirtualFile, which gives every party to a real estate transaction secure access to related documents 24/7.