Below please find useful information and suggestions regarding the following:

Deed

In most states, deeds must be prepared by a licensed attorney or a member of his or her staff under direct supervision. Commonly, this service is contracted-for by the Escrow Agent and is incorporated into its billing statement. Costs are usually minimal, and in all likelihood, will range between $30.00 and $100.00. Check with the Escrow Agent to ensure that deed form and preparation have been arranged. If not, the buyer and/or seller should engage a licensed attorney in the state where the real property is located to determine the appropriate form and prepare the deed. In that instance, the cost for the same should be agreed to by the parties, and included in the purchase agreement or an addendum, if possible.

Escrow Agent

The escrow agent is the person or entity (i.e., a law firm, lender, title company, or similar agency) which acts as a middleman to the real estate transaction. It is the Escrow Agent that acquires and holds the materials provided by the parties (deed, mortgage keys, earnest money, loan proceeds, title search, title insurance, etc.) until the closing date, when performance of the transaction occurs.

It is advisable to utilized a licensed and/or bonded Escrow Agent, to ensure that performance will properly take place, and that in the event that it does not, that recourse for damages suffered will be available. To locate potential Escrow Agents, consult your local telephone directory for a listing and/or consult with an attorney or lending institution for a recommendation. An online search may also be conducted, with recommended inquiry being "(name of city or state) + escrow + agent", or a reasonable variation of the same.

Title Examination/Title Search and Title Insurance

Title Examination/Title Search is the process by which a licensed and bonded Title Company determines that there are no prior encumbrances on the property (judgments, liens, etc.), which would prevent the Seller from giving and the Buyer from receiving "good" or "clean" title. Absent good or clean title, a Buyer will be relieved of his obligation to purchase the property, unless otherwise agreed to in writing by the parties.

As a result, although a Title Examination/Title Search is not mandatory, it is customary and commonly advised. Its cost is normally bargained for between the parties and included in the purchase agreement, and its relatively-minimal cost is paid at the closing out of the gross funds held by the Escrow Agent.

Title Insurance provides protection to the Buyer in the event that a cloud on the title (undiscovered judgment or lien, etc.) later becomes known and impedes the Buyer's free and clear ownership of the property. It too is not mandatory, but customary and advised. Its cost is also bargained for between the parties and included in the purchase agreement. Once again, the relatively-minimal cost is paid at the closing out of the gross funds held in escrow.

In most cases, the Title Examination/Title Search and the Title Insurance are obtained from the same Title Company. To locate potential companies performing these services, consult a local telephone directory for a listing and/or consult with an attorney or lending institution for a recommendation. An online search may also be conducted, with recommended inquiries being "(name of city or state) + title + company", "(name of city or state) + title + examination", "(name of city or state) + title + search", "(name of city or state) + title + insurance", or reasonable variations of the same.

Statutory Code Provisions