Pre-Settlement Processing
Shortly after your case is opened with LANDMARK TITLE, you will receive a letter from us assigning you a file number and a settlement coordinator. It will also include a checklist of items required from you to complete the closing. You can help us provide the most efficient services by contacting your LANDMARK TITLE settlement coordinator upon contract ratification. LANDMARK TITLE will use this time to diligently process all of the items listed below to ensure a smooth transaction.
- Order and review Title Search
- Order and review a House Location Survey
- Obtain Seller’s payoff figures
- Contact HOA or Condo management company
- Prepare Title Insurance binder for the Lender
- Obtain current property tax information
- Schedule convenient time and place for settlement and coordinate with all parties
- Prepare settlement documents including final settlement statement
Sample HUD-1
The HUD-1 is a form used by the settlement agent (also called the closing agent) to itemize all charges imposed upon a borrower and seller for a real estate transaction. It gives each party a complete list of their incoming and outgoing funds. Fees associated with the transaction but paid prior to closing are also included on the HUD. They are normally marked “POC,” for Paid Outside of Closing.
The statutes of the Real Estate Settlement Procedures Act (RESPA) require the form be used as the standard real estate settlement form in all transactions in the United States which involve federally related mortgage loans. It’s used for nearly all transactions that involve a buyer and seller, including cash closings.
New RESPA regulations were published November 17, 2008 and are scheduled to take full effect on January 1, 2010.
Click here to view the new HUD-1 sample
Title Insurance
Title insurance is an exclusively American invention. Its purpose was well stated in the first advertisement for title insurance back in the late 1800s:
“This company insures the purchaser’s of real estate and mortgages against loss from defective titles, liens, and encumbrances. Through these facilities [the] transfer of real estate and real estate securities can be made more speedily and with greater security than heretobefore.” [circa 1876]
Protecting purchasers against loss is accomplished by the issuance of a title insurance policy, which states that if the status of the title to a parcel of real property is other than as represented, and if the insured suffers a loss as a result of title defect, the insurer will reimburse the insured for that loss and any related legal expenses, up to the face amount of the policy.
Title insurance differs significantly from other forms of insurance. While the functions of most other forms of insurance is risk assumption through the pooling of risks for losses arising out of unforeseen future events (such as death or accidents), the primary purpose of title insurance is to eliminate risks and prevent losses caused by defects in title arising out of events that have happened in the past. To achieve this goal, title insurers perform an extensive search of the public records to determine whether there are any adverse claims to the subject real estate. Those claims are either eliminated prior to the issuance of a title policy or their existence is excepted from coverage.
Landmark Title Services will provide all of your real estate transactions in Virginia, Maryland and DC metro area. Conveniently located within Virginia and Maryland our settlement agents can always be flexible in closing location and settlement time.