Blog Layout
DD Web • Feb 21, 2017

What Does a Title Company Do? A Behind-the-Scenes Look

You’ve found the perfect home and negotiated a successful contract, so the house is yours…right? Not quite. There’s a lot that happens from the time your offer is accepted to the day of the actual closing. So why does it take so long, and what actually goes on behind the scenes?

Between loan approval and closing, your title company is busy doing a lot of work to oversee the purchase process and make sure everything goes off without a hitch. If you are working with a real estate agent, they will place an order with a title agent as soon as your sales contract is accepted. While many homebuyers rely on their real estate agent to select a title company, homebuyers should know they have the option to choose for themselves! After all, a title company has a lot to do with how smoothly and timely the process goes.

But what exactly does the closing process entail? Here’s a ‘behind the scenes’ look at what your title company is doing to ensure your transaction closes on its scheduled date and time (and get you into your new home as quickly as possible!)

PURCHASE AGREEMENT – In order for title work to begin, the title company receives a copy of the Purchase Agreement (which defines the terms of the sale) and as a neutral party we follow the contract and instructions that are given to us. The title company also often acts as the settlement/escrow agent and will hold the earnest money deposit in an escrow account, where the funds will remain until the time of closing.

TITLE SEARCH – Next, the title company will conduct a thorough title search of public records to determine that there are no issues with the title (such as judgments, liens and encumbrances, and title defects). Once that search has been completed, a commitment or preliminary report for title insurance is prepared for the lender and/or home buyer.

TITLE INSURANCE – If you’re receiving financing, your lender will likely require that you purchase a Loan Policy (however, it only protects the lender). In many cases two policies are issued — one to protect the lender and one to protect the homeowner (Owner’s Policy), which protects you from title defects that existed prior to the issue date of your policy. In the state of Utah it is typical that a buyer purchases a lender’s policy and a seller purchases an owner’s policy.

SETTLEMENT STATEMENT – Once the title company has received and complied with all of the lender’s closing instructions and loan documents, they will prepare a settlement statement which outlines all of the costs for both the buyer and seller associated with the closing. This includes earnest money deposits, adjustments and prorations, existing loan payoffs, disbursements and escrow fees.

CLOSING DAY – When all paperwork has been completed, the title company will confirm the date, time, and location of the closing with all parties involved. At the closing, your escrow officer will explain the documents that need to be signed and collect the required signatures. Once papers are signed and the loan has been funded, you’ll receive the keys to the house. This is, of course, based on the possession date on your real estate contract.

While you’ve been busy packing and coordinating the movers, much more is done behind-the-scenes that leads to move-in day. It is the title company’s role to not just facilitate the transaction that will get you into your new home, but to alleviate some of the stress that comes along with it. At Novation Title, we believe that everyone working together makes closing day a cause for celebration!

-Novation Title Team

Do you know WHO picks your Title Company?

By Stephanie Cline • 29 Mar, 2024
Hey there, future homeowner! So, you're diving into the wild world of real estate, huh? Exciting times ahead! 🏡 But hold up – before you pop the champagne, let's talk about something crucial: choosing your title company. Now, who gets to decide on this? Spoiler alert: it's you! Sure, your real estate agent or lender might throw a few suggestions your way, but ultimately, the choice is yours. So, let's make it count! First things first, do some snooping around. Check out different title companies online, ask your pals for recommendations, and see what vibes with you. You want someone reliable, experienced, and who's got your back, no matter what. Oh, and don't be shy – ask questions! Seriously, grill them like you're on a first date. How long have they been in the game? What's their process like? And most importantly, can they handle your quirks and concerns like a champ? Remember, this isn't just about paperwork – it's about peace of mind. Your home sweet home is a big deal, so choose a title company that feels like the perfect fit. Trust me, it'll make all the difference when it's time to pop those keys in the door!

February Giveback- For The Kids

By Stephanie Cline • 29 Feb, 2024
February is not just about Valentine's Day chocolates and romantic gestures; it's also about spreading love and kindness to those who need it most. And boy, did we have an amazing time doing just that with our February Giveback! This month, we teamed up with the incredible For The Kids nonprofit to make a difference in the lives of children in our community. And let us tell you, it was a heartwarming experience from start to finish. First things first, our team rolled up their sleeves and dove straight into action. We spent a day volunteering, packing a whopping 100 meals to be delivered to those in need. The joy of knowing that these meals would bring smiles to the faces of children warmed our hearts in ways we can't even describe. But we didn't stop there! Oh no, we were just getting started. With our sleeves still rolled up and our spirits soaring, our very own Joe packed the truck with all those delicious deliveries for that Friday. The excitement was palpable as we imagined the happiness these meals would bring to families across our community. And guess what? Our amazing supporters rallied behind us in full force! Through their generosity, we collected over 100 additional items to donate to For The Kids. From canned goods to pantry staples, every single donation meant the world to us and to those we're helping. As we reflect on our February Giveback journey, we can't help but feel overwhelmingly grateful. Grateful for the opportunity to make a difference. Grateful for the support of our community. And most of all, grateful for the chance to spread love in every way we can. It's worth mentioning that our dedication to For The Kids goes way back – we supported their mission back in 2021, and we're committed to continuing this beautiful partnership for years to come. To everyone who volunteered, donated, or simply cheered us on from the sidelines – thank you. Thank you for believing in the power of kindness. Thank you for joining us on this incredible journey. Together, we're making the world a brighter, happier place, one meal and one smile at a time.

Nova Reveal 2024!

By Stephanie Cline • 31 Jan, 2024
The curtains have risen, the confetti is in the air, and we are ecstatic to share the electrifying plans Novation Title has in store for 2024! This year's big reveal event was nothing short of a spectacle. Hosted on Zoom, it was a virtual fiesta with most of our incredible team. We kicked off the event with a bang, unveiling not just launches but also insights from a unique case study involving over 250 Agents. Picture this: a backstage pass to what the real estate game-changers need in 2023. It's a report that's about to revolutionize the way we navigate the real estate landscape. There were reminders of the tools that spark creativity at Novation Title – from ecording rooms to meditation rooms. We also shared all about Nova Connect, and an exclusive savings opportunity. A mic drop moment, unveiling our Referral Program, updated Diamond Partnership and Diamond Plus perks, and our Nova Show: Real Estate Records Podcast now with fresh episodes every week. As if that weren't enough, Novation Title is officially rocking the YouTube scene as of Season 3! The website got its moment in the spotlight as we went through its hidden treasures. Real Estate Pop Bys, the Title Rate Calculator – it's like a digital treasure hunt. And let's not forget the Nova Academy Calendar, our roadmap to success with all of our class schedules. Speaking of Nova Academy, we shared the excitement about upgraded classes tailored to your needs. Learning just got a whole lot more thrilling! We put the spotlight on Nova Stories – and how we have updated this experience to help you. Lights, camera, action! Novation Title's values – the Give Backs that have shaped our community. From Primary Children's Hospital to Sub for Santa, we've been making a difference for over six years. We are so excited for all of our upcoming community services. Novation Nation, are you as pumped as we are? The future is now, and we're ready to take 2024 by storm. Stay tuned for more updates, adventures, and game-changing moments from Novation Title. Here's to an extraordinary year ahead!
More Posts
Share by: