Settlement for Buyers

We have supplied the information below to assist you in understanding what is expected of a Buyer at Settlement. This information is generally how the settlement process works, however, we encourage you to speak directly with your settlement company to receive specifics on how they hanndle settlements in their office.

Question: What are the main responsabilities of a settlement company from a Buyer's perspective?

Answer : From a Buyer's perspective the settlement company will:

1. Review the title search and survey (if a survey is required) and determine that the seller's title is clear, marketable and insurable;
2. Pay in full and secure releases for any existing liens against title to the property as found in the public land records;
3. Note any easments, rights of way and/or covenants of record;
4. Coordinate delivery of your mortgage loan papers from your lender to the settlement company's office prior to closing;
5. Conduct settlement at a pre-arranged place (typically the title company's office) at a pre-arranged time;
6. Disburse all sums collected at closing to the various parties as set forth on a standard settlement statement (HUD-1) and as directed by the Contract of Sale;
7. Record all necessary documents to effectuate transfer in the appropriate land records office;
8. Issue policies of title insurance to yourself and your mortgage lender subsequent to recordation of documents.

Question: How am I supposed to know what I am reading at settlement?

Answer: At settlement the Settlement Attorney will review with you all the documents, provide a brief explanation of the forms and have you sign these documents and forms.

Question: How long will settlement take?

Answer: Closings generally last about one (1) hour.

Question: What will I need to bring with me to settlement?

Answer: You will need to bring:

1. A cashier's check or certified check for the balance of your down payment and closing costs. The check sould be payable to the settlement or title and escrow company. The exact amount due from you may not be available until shortly before closing. Most settlement companies provide a preliminary settlement statement in advance of your closing so you have an idea of how much money you should get in your check.
2. Your check book to cover any difference in the amount owed and the amount of your cashier's check or certified check. Usually the settlement company will only accept personal checks less than $1,000.00, but you should check with your settlement or title and escrow company to know what their policies are in this matter.
3. A photo identification card from a U.S. or State Government Agency (like a Driver's License, Passport or Governmental ID Card). Failure to produce proper identification can delay settlement.

Question: What shoul I do the day before settlement?

Answer: You should call your loan officer or loan processor the day before settlement to confirm whether you need to bring any documents to closing, such as a homeowner's insurance policy or original termite report.

Question: What should I do the day of settlement?

Answer: You will need to notify the following utility companies of transfer of the accounts to you. The transfer should be made on the day of settlement (or the date the seller vacates the property if a rent back is involved). The water company is the only utility that the settlement company pays directly out of the seller's proceeds. For your information, here are some of the phone numbers to area utility companies:

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