Written By: Andrew Nichols
Congratulations! Your offer has been accepted and you’re about to be a new homeowner. One of the next steps is to pick a settlement date and pick a title company to hold the settlement. Here are a couple of things to keep in mind about the settlement process.
Is it “Settlement” or “Closing”?
Chances are you’re going to hear the terms “settlement” and “closing” used by your agent and/or lender and you may wonder if they are different steps in the process. When used in this context, they mean the same thing. Settlement or closing is the last step in the process where among other things, you usually go to the title company’s office, sign a stack of documents and get your keys.
How Long Will the Process Take?
The actual closing takes less than an hour, however, that’s usually the easy part. Once your offer has been accepted, on average, it will take 30-45 days before you can go to closing. This is an average, and the number can vary depending on the lender and other factors.
What Does the Title Company Actually Do?
The title company makes sure the sale and purchase of the house goes smoothly. This includes examining the title on the house you’re purchasing. The title company will conduct a title search to make sure the property’s title is “clean.” This means there are no liens, easements, unpaid taxes, judgments, etc., that impact the title. The title company will also issue you title insurance.
What is Title Insurance and Who Pays for It
Title insurance generally protects you against unknown or undiscovered defects in the title to the property. A more comprehensive breakdown on title insurance can be found here.
While the types of coverage required and who is required to pay for them can vary from state to state, in Maryland, lender’s title insurance is required and the homeowner’s title insurance is optional. The new homeowner is required to pay for title insurance.
Who Picks the Title Company?
The buyer gets to pick who handles their closing. While your agent or lender will often be happy to refer you to a title company, as the buyer in Maryland, you get to choose your title company.
Horman Nichols is a Title Company
Horman Nichols is a title company and we handle commercial and residential real estate settlements. While we are also a law firm, our prices to handle a settlement are no different than any other title company. Our attorneys have been handling real estate settlements for decades. Contact our office for questions about the real estate settlement process.
Horman Nichols, LLC 