Frequently Asked Questions

What does the title compay do?


Once you have a contract to buy or sell a property as your title company we:
- Act as your escrow agent so funds are handled by a neutral, third party
- Distribute funds to sellers, brokers and, or realtors at closing
- Review title by conducting a title search, and clear any defects of title before closing
- Ensure that you are getting free and clear title at closing
- Issue title insurance policies
- Pay off any back liens or encumbrances on the property
- Work with your realtor to ensure that all contractual contingences have been met
- Order a survey and lien search
- Explain all closing documents, including loan documents sent to us by your lender.
- Conduct a smooth closing and then get your documents properly recorded

Other than title insurance, what are the various costs involved in a closing?
- For a purchase, you have to have a survey and a lien search done which we will order
- The lender will order an appraisal.
- If the property is a condo or has a homeowner’s association, we have to order an estoppel letter which gives us information on the operations of the association
- On a single family home, and on many townhouses and/or villas, the buyer must line up homeowner’s and, where necessary, flood insurance. Enough funds to pay for a year of insurance will be escrowed at closing.

I can’t be at the closing –what are my options?
- If you are the seller we can do an ‘away’ closing and send you various documents for you to sign and have witnessed by an attorney or notary public.
- If you are the Buyer, you can appoint someone to act in your stead and give them ‘Power of Attorney’. The Power of Attorney document must be properly drawn up and must be sent to us in good time for us to have it reviewed by our underwriter. Most lenders also have specific requirements for acceptable Power of Attorney documents.

I’m refinancing – what is the Right of Recission?
The Right of Recission is a federal regulation that allows a borrower to cancel a refinance decision anytime within three business days of the closing. This applies to a borrower’s primary residence only, not to refinancing on a second home or investment property.

This means that the money for the refinancing is not available to the borrower until the 4th day after closing. Also payoffs of mortgage or other debts will also be done on the 4th day.