Sequence Of A Residential Real Estate Transaction - From A Title Agency

One of my buyers related that he would have enjoyed knowing in advance the sequence and timeline of events that would take place between the acceptance of an offer up to the date of closing and possession.

Chris Chipps, Sales Representative, Voice Mail (330)-966-4027 from Real Estate Title Service Corporation has graciously provided me with a very comprehensive print out of the events that take place from several perspectives. First through the interests of the BUYER, next through the interests of the SELLER, and lastly through the interests of the LENDER.

I'll see if Chris will give me permission to provide the complete article to anyone who asks. For now, I will only post the information from the perspective of the buyer. Chris related to me that the TIME factor is dictated mostly by the lender. The entire process seems to take about 2 to 3 weeks for an all cash transaction, and anywhere from 30 to 45 days when loans are involved.

It is important to know that the title company can do title work very quickly, in a very few days, in most instances. The title company is at the mercy of the lender. It is also important to know that the lender is at the mercy of the borrower, and can also do its work in a very few days if the borrower has good credit. The quicker the lender gets all the documents it needs, the quicker the title company can close.

You'll find the information provided by Chris between the dashed lines below:

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1. BUYER
A) Offer and Acceptance
1. Buyer and seller to decide which title company to use.
2. Homeowners inspection ordered and completed.
3. Lender's names and contact numbers proviede to title company.
4. Realtor forwards copy of contract and any addendums.
5. Earnest money check deposited - escrow agent notified.

B) Loan Application
1. Upon approval of loan, title examination started (unless pre-start was ordered)
2. Sight survey ordered.
3. Loan approved, with or without conditions (Buyer: ie payoff debt, co-sign, tax returns, repairs. Seller: ie appraisal repairs, city point of sale, encroachments, chain of title not in line.
4. Commitment issued: (buyers decide how to take title).

C) Escrow Opened (either lender, attorney, title agency)
1. Contracts, addendums, earnest money letter deposited with escrow agent
2. Escrow agent coordinates terms and conditions of the purchase agreement - at arms length - between all parties.
3. If all conditions are met, escrow agent will have buyers execute all documents and deposit necessary funds including property insurance binder or proof of payment. Title agency will deposit a title commitment stating coverage, exceptions, and exclusions (exhibit available)
3a. Preliminary H.U.D. settlement statement issued
3b. Lender notifies escrow agent they are ready to file/close
3b. Closing takes place, either round table or non round table
4. Escrow agent will instruct title company to take the executed documents to court house for filing (recordation)
5. Escrow agent disburses funds to sellers, buyers, real estate firms if buyers bank has funded.
5a. Final H.U.D. settlement statement issued to buyers and sellers - final pro-rations based on actual filing date.
6. Escrow closed. (Any conditions or contract stipulations not completed will be considered).
Owner's title policy mailed from underwriter to buyers.
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Please email a request for the entire article as relates to the perspective from the seller and the lender to:

JDvorovy@CutlerHomes.com

Thanks,
Jim Dvorovy