As closing nears this week for me, it’s time as the seller to prepare for the closing. I emailed over the authorization to release form for the title company so that they could call my 1st and 2nd lender to get the payoff figures available.  They also checked on any levied assessments or past due property taxes or prorated property tax amounts.  Also it’s good that all water bills be current for the new buyer, I mailed in my water bill to pay it in full.  The Listing agent, buyer’s agent, buyer, seller, loan officer will receive some type of letter from the title company about the upcoming closing.  The letter will mention the closing date as well as the address and location, and may even mention who the closer is.  The title company asks the buyer and seller to have their social security #, their driver’s license or picture ID, and where(addresses) they lived the last 10 years.

Schedule A portion of the title commitment lists the effective date, the policy for the new lender.  It mentions that I had fee simple estate as a single status owner.  If I was married I would have to have my spouse also sign the deed and paperwork when I sell. Schedule A also lists the legal description, as well as the address to the property.

Other sections require for the title insurance to take effect that 1st and 2nd mortgage must be satisfied and paid off in full.  Any other liens for the county and or name that have attached to the property would have to be paid off.  Warranty deed must be signed and passed from seller to buyer.  Association dues if their were any would have to be paid in full.  Sometimes additional things are added.

Let me give you an example of an exceptions part of the title commitment, which basically says what’s excluded from coverage.  An insurance company excluding something? NO.

The policy or policies to be issued will contain exceptions to the following unless the same are disposed of to the satisfaction of the Company.

1.       Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the Effective Date hereof but prior to the date the Proposed Insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment.

NOTE: Upon closing with X_ Title, Inc., Item 1 on Schedule B-II will be deleted. The Final Policy will extend coverage as to the gap between the Effective Date listed in Item 1 of Schedule A and the date of recording of the instruments creating the interest to be insured.

2.       Rights or claims of parties in possession not shown by the public records.

3.       Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land.

4.       Easements or claims of easements, which are not shown by the public records.

5.       Any lien or right to a lien for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records.

6.       Taxes or special assessments which are not shown as existing liens by the records.

7.       General and special taxes and assessments as hereafter listed, if any (all amounts shown being exclusive of interest, penalties and costs).

8.       No coverage is provided for municipal code compliance matters and fees including, but not limited to, utilities, water or sewer services, or fees for tree, weeds, grass, and snow or garbage removal, police boarding, vacant building registration and zoning.

9.       Taxes payable in the year 2008 in the amount of $X Total, unpaid plus penalty on unpaid 1^st half;  (27-119-22-43-0015)  Base Tax:  $X, Non-Homestead.
Note: 1st Half Taxes are payable on or before May 15th and 2nd Half Taxes are payable on or before October 15th.

10.   Levied special assessments are as follows:
 St/Ut/Delut…..$X balance…..$X certified to 2008 taxes.
There are no pending special assessments.

11.   Covenants, conditions, restrictions and provisions as set forth in Document Number 4752588.  (These restrictions contain no forfeiture provision.) (Omitting any covenants or restrictions, if any, based upon race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, or source of income, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law.)

12.   Drainage and utility easements over the subject property as shown on the recorded plat.

13.   Easements as to common areas.

If there are any questions regarding this Commitment, please contact —– at (555) 555-1212 or by email at test@x_title.com

This is just one thing that a seller reviews before getting to closing.

I will do future blog posts about title and paperwork for closing.

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