The Super Bowl is approaching, and that mega-event traditionally signals the start of the home buying season. Home sales are predicted to blossom this year, and you may very well be thinking about selling or buying (or both).
When you decide to get into the real estate market, I strongly advise that you hire an agent to help you through the process of finding the right buyer or new home, and a real estate attorney to counsel you and help you close the deal. As you start moving toward the closing table, here are some steps that you should be aware of:
- Selecting a closing agent
With your permission, your real estate agent or your attorney may place an order with a title company once the sales contract is accepted. The title company will provide a report on the state of title for the property and will oversee the closing process and make sure everything happens in the right order and on time. Most buyers and sellers rely on their real estate agent or attorney to select a closing agent—someone they work with regularly and know to be professional, reliable and efficient. Keep in mind, however, that you can choose your own title company if you wish.
- Provide all important details
Communicate regularly with your attorney to ensure that good collaboration exists among all parties. There is a team that has come together to make sure all interests are protected and that you’re in compliance with laws and regulations. This team of real estate agents, attorneys, lenders, appraisers, home inspectors, and, of course, the title company, works together toward a successful closing.
- Shopping for title insurance
Did you know that you can shop for your own title insurance? In the Chicago area, sales contracts typically stipulate that the seller will purchase owner’s title insurance for the buyer. I urge you to spend some time shopping for title insurance. The American Land Title Association’s consumer site (homeclosing101.org) can help you through the process.
- Title search conducted
Once the title order is placed, the title company conducts a search of public records. This should identify any issues such as liens against the property, utility easements, etc. If a problem is discovered, most often the title professional will take care of it without you even knowing about it. And if an undiscovered problem comes up following closing, owner’s title insurance will protect the owner’s investment.
- Reviewing the Closing Disclosure
If you are a buyer, your lender must provide a Closing Disclosure to you at least three days prior to closing. Whether you are a buyer or a seller, with closing approaching this is a great time to consult with your attorney for a thorough explanation of the financial aspects of the closing.
- The finish line: preparing for closing
As closing day approaches, the attorneys and the closing agent order any updated information that is required. The parties, through their attorneys and the lender will work with the title company to set a final closing date, time and location.
On closing day, all of the behind-the-scenes work is complete. While you’ve been busy packing, ordering utilities and coordinating the movers, your closing agent has been managing the closing process so that you can rest assured, knowing all the paperwork is in order.
For more information, please contact me at fpellegrini@prairietitle.com, or 708-386-7900 ext. 1301.
Frank Pellegrini
CEO, Prairie Title, Oak Park