The closing Process Explained
by Nicole from Champion Title
Nicole from Champion Title is excellent and her and her team are doing a fabulous job. Once we are under contract for your Dream Home, that’s when the title company is doing their thing. They will make sure everything is ready for you to purchase your home, free and clear of any title defects.
There are a lot of things to consider once you are under contract to purchase your home. While the title company is doing their thing there will be lots more things you and I will have to do. Like inspections, Loan approvals and much more. This is not the blog that will focus on all this is post mainly focuses on the closing process once we deliver the contract to the title company.
You the buyer will have to deliver your Earnest Money Deposit to the title company and both the title company as well as your Real Estate Agent will instruct you on how to submit the Earnest Money check to them.
Here are more things to consider with it come to the closing process. The title company will be asking you several questions.
How will you be taking title?
TYPES OF TENANCY
One of the documents you will receive from your Champion Title processor asks how you would like to hold title to the property. Please note that there are several ways to hold title.
An undivided ownership interest by one person with no other party having a right or interest in or to the property.
TENANTS BY THE ENTIRETY:
If you and your spouse are purchasing the property together, you may hold title as tenants by the entirety, which is reserved for married persons. This tenancy provides for survivorship so that the property will pass to the surviving spouse at the death of one spouse. It also prevents most judgments against one of the spouses from attaching to the property.
Champion Tip: Any judgment against both parties will attach to the property, i.e. tax liens, HOA/condo liens.
An equal ownership interest by all parties named on the deed with rights of ownership vesting in the survivor of all owners. This tenancy provides for survivorship so that the property will pass to the surviving owners at the death of one owner.
Example: Andy, Beth and Charles own Black Acre as joint tenants. If Beth dies, Andy and Charles will each own the property as surviving owners.
TENANTS IN COMMON:
An individual divided ownership interest in a portion of the property (either equal or unequal) with another party and sharing a common interest and right to use as to the whole. Tenants in Common does not provide for survivorship rights. Upon the death of an owner, the deceased’s interest in the property is passed to his/her heirs or through his/her estate plan.
Example: Andy and Charles own Black Acre as Tenants in Common each with a 50% interest in the property. If Andy passes away, his 50% interest in the property will pass to his heirs or through his estate plan. The heirs or the beneficiaries of his estate plan will then own 50% of the property along with Charles who still owns 50% of the property.
Champion Tip: Tenants in Common is the tenancy that is created if another tenancy is severed. For example, if a married couple holds title as tenants by the entirety and gets divorced, that tenancy by the entirety is severed and the former spouses automatically become tenants in common.
Another question the processor from the title company wants to know is what type of Title Insurance would you like.
Title Insurance Explained was a previous blog post I created.
And then the processor will be asking if you would like a property survey.
Do you need a property survey blog post
Find out more about the Home Buying process right here 👉👉 Home Buyers Guide
Claudia S. Nelson
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