Step 1: Under Contract
A buyer and seller contractually agree on an offer price and set a closing date.
Step 2: Title Search
The title company performs a search to identify ownership history and any title issues, and then summarizes it in a report.
Step 3: Receive Report
The buyer receives a report, called a title commitment, that highlights any defects, liens, easements, or encroachments.
Step 4: Title Issues?
The title company works to clear the title with the help of the seller and agents.
Step 5: Prepare to Close
The title company schedules your settlement appointment, and then starts gathering the documentation needed to close from several other parties (HOA, lenders, HOI, etc.).
Step 6: Closing Day!
The buyer attends the settlement appointment to review and sign the final paperwork.
Step 7: Recording & Money
Title is transferred to the buyer and recorded with the county in the deed. Plus, money is distributed as outlined in the Closing Disclosure.
Step 8: Coverage Starts
Your title insurance policy is issued shortly after closing day.