TITLE TIP TUESDAY: The Life of a Title Order, How a Title Policy is made
Jeff Fells
Partner Langdon Title | Title Insurance ?? Execution ?? Personal Service ?? Top Real Estate Resource ?? Connector
Many buyers receive a Title Policy after closing. Much important work has been done behind the scenes to protect your interest in the new property. This simple infographic to the right can help you understand how a title policy is made. NOTE: This can vary from state to state.
How a Title Policy is Made
- Title Order Opened
The order is opened based on information in the executed sales contract.
2. Title Search & Examination
Various public records are searched to identify potential title risks. The results of the search determine requirements (documents needed in order to complete the deal) and exceptions (items the title company will not insure).
3. Title Commitment
This commitment is to insure title on the subject property and includes amount of coverage, who is covered, policy terms & conditions, and any limitations of coverage.
4. Curative Matters
The title company takes action to correct (or cure) title issues, or insure around/against the identified issue(s).
5. Closing
Once matters have been resolved, and the lender has given their final approval of the loan’s financial details, the deal is clear to close. An appointment is set for the closing, where the buyers and sellers sign necessary paperwork.
6. Post-Closing Processing
If all items are satisfactory to the lender, they fund the loan. All parties are notified once they receive the buyers’ funds from the lender. The Escrow Officer records all related documents with the County Clerk and Recorder.
7. Congratulations! Your Title Policy Is Issued!
If all Requirements listed on the Title Commitment have been satisfied, the final Policy is issued to the buyer.
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Jeff Fells linkedin.com/in/jefffells is a top producing title executive at Langdon Title. Fells has handled many high profile transactions insuring billions worth of title insurance policies for clients across all areas of real estate including owners, operators, developers, investors, private equity groups, family offices, and attorneys that specialize in commercial and high-end residential transactions in New York and nationally.