Resources
Tools to Help You with the Title Insurance and Closing Process
Qualia Connect
Download the Connect App, or login on your desktop computer to help you to stay up-to-date on your closing process. You can also securely submit important information to us.
Qualia Connect
Download the Connect App, or login on your desktop computer to help you to stay up-to-date on your closing process. You can also securely submit important information to us.
Texas Real Estate Commission Contracts
If you are not working with a Real Estate Agent or Attorney please use this link to find the appropriate contract for your sale.
Texas Real Estate Commission Contracts
If you are not working with a Real Estate Agent or Attorney please use this link to find the appropriate contract for your sale.
Calculators
Use the title policy calculator to help estimate the cost of your title insurance, and the mortgage calculator to help you estimate your monthly mortgage payment.
Calculators
Use the title policy calculator to help estimate the cost of your title insurance, and the mortgage calculator to help you estimate your monthly mortgage payment.
Funds Disbursement
If you are a seller or realtor and would like your commission from the sale of your property wired to you, simply fill out this form and bring it with to your closing.
Funds Disbursement
If you are a seller or realtor and would like your commission from the sale of your property wired to you, simply fill out this form and bring it with to your closing.
Glossary of Terms
An appraisal fee is the cost of having an appraiser come out to your property and evaluate it to determine the fair market value. This fee is usually paid by the buyer.
The Closing Disclosure form is a five-page document that gives you the details of your closing. It helps you to understand the terms of the loan and breaks down the closing costs. You will typically receive the Disclosure from your lender or title company three days before your closing.
Discount points, also called mortgage points, are interest that you can pre-pay at your closing. This will help you lower your future interest rate. One point is usually equal to 1% of the total loan amount. Refer to your lender for specifics.
An endorsement is an addition or modification to a standard title insurance policy, offering specific coverage for unique property issues or risks. It essentially customizes the policy to address particular concerns beyond the standard protection.
The Truth in Lending Act (TILA) is to make sure that lenders are giving all of the important information to you about your loan during your closing. Refer to your lender for specifics.
Hazard insurance is part of your homeowner’s insurance and protects the house itself and other buildings on your land like garages and sheds. Some things it may protect against include fire, wind, hail and falling objects. Refer to your lender for specifics.
A home inspection is your last chance to find out any potential issues with the house. If any issues are found you could add them to the terms of the sale so that the seller can pay for them before closing.
Interest rate is the amount of money that is charged on a loan for the lender to issue the mortgage. This is usually a percentage of the total amount of the mortgage and can be either fixed or variable.
The loan title policy is basically a safety net for the lender. It is set up so that if any problems come up with the title, that may affect the lender’s ability to get their funds paid back, the policy will cover the balance of the loan. Refer to your lender for specifics.
An origination fee is charged by lender to cover administrative costs that go along with processing a loan application. It is usually paid up front and calculated as a percentage of the total loan.
The owner’s title policy is a safety net for you when you are purchasing a property. It protects you from any problems that may have come up before you bought the property that were not known before closing.
Taxes are prorated and split between the buyer and the seller, depending on when the property sale takes place, and whether the current year’s taxes are due. For example, if a property is purchased in June the seller may give the buyer a credit for 6 months of taxes, and the buyer would pay for the entire years taxes once they take ownership of the property.
This a percentage of the sale price that is paid out to the real estate agent(s) who are helping with the purchase or sale of a property, and is typically paid by the seller.
A recording fee is usually paid by the buyer at the time of closing and covers the cost of publicly recording the documents, at the county clerk’s office, that are associated with the sale of the property.
Deed restrictions are created to regulate the use of the land and can direct how the land is used, i.e. the type, character, and location of buildings or other structures. The restrictions usually go with the land which means they will apply to all future owners as well.
A property survey is a document that shows a picture of the physical features of the property and a written report of the surveyor’s findings. A 1A survey is typically required in order for the title company to provide any additional coverage on the loan or owners title policy.
A tax certificate lists the property’s tax status. It certifies if property taxes have been paid or if there any balances, penalties or interest owned.
A title commitment is a document that outlines the terms under which a title insurance company agrees to issue a title insurance policy to a buyer and/or lender in a real estate transaction. It serves as a promise to insure the title, subject to certain conditions and exceptions. The title commitment is issued before the actual title insurance policy, allowing time to address any issues that may cloud the title.
- Schedule A: Who is to be covered in title, who is vested in the title, and the property description
- Schedule B: What your policy will not cover
- Schedule C: Curative work that needs to be completed before you close
Frequently Asked Questions
The closing process is the final step in a real estate transaction where ownership of the property is legally transferred from the seller to the buyer.
How long a closing process takes can vary. The general title commitment turnaround time is about 10-15 business days from the date the contract is receipted. Factors such as the complexity of the title or unexpected issues may affect the timeline. Once all requirements of Schedule C of the commitment are satisfied, and the lender (if one is involved) has given a clear to close, then the actual closing can be scheduled.
To prepare for closing day, follow this checklist:
- Confirm with your lender or closing agent what documents and funds you need to bring.
- Ensure all required insurance policies are in place and provide proof.
- Verify arrangements with your closer for any parties who cannot attend in person.
- Review the Closing Disclosure in advance to understand the final loan terms and costs.
Buyers should bring a government-issued photo ID, and to make sure to wire their funds prior to closing. They should also bring any additional documentation requested by the closing agent.
Sellers should bring a photo ID and their wiring instructions (usually either a voided check or by filling out the Funds Disbursement form).
You would typically except to see the buyer(s), seller(s), each of their real estate agents, and a member of the Garland Smith Abstract Co. team to facilitate the closing. You may also see an attorney or someone that is representing the lender.
If you cannot come to the closing there are several options that you choose from. Be sure to let your closing agent know ahead of time if you cannot come to the closing so that everything can be set-up for you to still close. These other closing options can include:
- Power of Attorney: This allows an agent that you have chosen to come to the closing and sign on your behalf. (Not applicable to all transactions.)
- Mail Out: Upon your request we can arrange ahead of time to set-up a mobile notary service to meet you to come and get the signatures needed. The notary will overnight the documents to our office for you.
During the closing several things will happen including:
- Signing all the necessary documents like the deed, loan agreements, and settlement statements.
- Paying closing costs like title fees, taxes and any charges from the lender.
- Verifying that all the conditions of the sale have been met.
- The official transfer of ownership where the deed is recorded to public records. This finalizes the real estate transaction.
- The buyers will receive the original deed and title insurance policy once the sale is recorded.
Closing costs include:
- Recording
- Tax Certificate
- Escrow Fee
- Deed Prep
- Realtor Commission etc.
The costs are more specifically defined in paragraph 12 of the TREC Contract.
Our team prepares everything ahead of time to ensure that your closing goes smoothly, so issues are uncommon. However, it is possible for some issues to come up including missing documents, last-minute funding delays or unresolved title matters. By working with the buyer, seller, and their real estate agents we can team up to take care of any issues together and successfully close your property.
Once all documents are signed and funds are distributed, the closing agent will:
- Record the deed and other necessary paperwork with the local government to finalize the sale.
- Disburse proceeds to the seller and any other parties involved.
- Send any payoffs to loan holders and verify or record the Release of Lien.
- Issue the title insurance policy to protect your ownership rights. This typically takes no longer than one week.
At this point, the buyer officially becomes the property owner, and the seller receives any remaining proceeds from the sale.
Do you have more questions? We are here to help!
