A real estate transaction, whether it is a purchase, sale, or refinance, has many steps that must be completed to assure that all parties involved are satisfied and protected. The culmination of these steps is the closing. Here's a simple summary of the loan closing process:
For a purchase or sale, once a sales contract is signed by the buyer and seller, it is delivered along with a deposit check to the closing agent, Bay Surety.* We then begin the closing process by ordering necessary documents including tax information, loan payoffs, property survey, homeowner association fees, inspections, and other insurances.
With the assistance of a title insurance company, we search the public records for deeds, mortgages, liens, wills, marriage and divorce records and other documents affecting the title and ownership of a property. Once legal ownership is confirmed, the debts owed against the property are determined.
Following industry guidelines the necessary documents are gathered and completed for closing. Bay Surety conducts the closing of the transaction and makes sure documents are signed by all parties. In many instances, representatives from the real estate company, lender, or attorneys are present.
Once the closing has been completed, we distribute funds from the escrow account to any lenders, the seller, and anyone else who performed services in connection with your closing. We then record documents related to the transaction in the county in which the property is located. Title insurance policies are prepared and sent to the buyer and/or the lender.
*In a refinance transaction, the lender wil give you the option to choose your title agent and place the order for you.