6 Important Title and Escrow Facts Every Agent Should Know

As a real estate agent, you make it your business to know the distinct details surrounding a property, as well as the specific needs of each client. You may even have a good idea of the inner workings of settlement, a factor important for seeing your clients through the entire purchase process. In truth, the more you know about title and escrow services, the better equipped you are to deliver the ultimate in customer service to your clients – and be the one people turn to when looking to buy or sell.

Know These 6 Key Settlement Facts

  1. The process of searching and rendering a clear title varies among title companies and attorneys, and even from state-to-state. Experiences from one closing process to the next may differ for both you and your clients.
  1. A Lender’s Policy and Owner’s Policy serve different purposes. It’s important to make certain you know what each entails, and pass this information on to your clients.
  1. To follow up fact #2, an Owner’s Policy is the only thing protecting your clients in the event problems with title are discovered after closing. Strongly encourage your clients to purchase an Owner’s Policy to avoid having to pay for someone else’s error.
  1. Though not required, obtaining a survey reveals specifics of the property in question and is highly recommended for the buyer. Since many buyers are unware of such benefits, it’s a good idea to initiate this conversation and encourage them to request a property survey to protect their interests.
  1. Disclosure of final closing figures is very much lender-dependent. Each lender differs in how and when they release the amount needed for closing, typically until the day before or even the day of closing. Though often a stressful time, prepare your clients to be flexible (and patient) until those final numbers are released.
  1. Funds cannot be held in escrow pending issues or needed repairs detected during a walkthrough conducted the day of closing. To prevent final hour escrow concerns, avoid waiting until the last minute to schedule the walkthrough. The title company or closing attorney needs any and all invoices for work/repairs to be completed at least 48 hours prior to closing.

At Linear Title & Escrow, we are always ready to answer any questions, no matter how simple or complex. Contact us today at (757) 340-0340 to learn more about our settlement services.

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