Settlement on Your New House

Posted on by Horman Nichols, LLC

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.

She Gave an Interview and Now Mel Gibson is $500,000.00 Richer

Posted on by Horman Nichols, LLC

Many of you have likely heard of civil settlements that involve confidentiality provisions. The terms will vary depending on the agreement, but generally they say that no party can discuss the settlement amount (usually applicable to the party receiving the settlement) or comment about the underlying facts that gave rise to the litigation or potential litigation.

This is not an uncommon thing in cases that involve large sums of money, public figures (i.e., athletes, celebrities, etc.) or cases where the defendant may have additional exposure in other pending cases (e.g., GM with the ignition switch litigation).  I once had a judge in Baltimore City get very irritated with me because I wouldn’t disclose the amount my client was paying to the plaintiffs to settle their cases.  I calmly explained that it was a confidential settlement.  After voicing his displeasure at me, he eventually conceded that it was within my client’s rights for me to not disclose the amount.

Do provisions like this have any teeth?  What can be done if a party violates the confidentiality provision?

Oksana Grigorieva, Mel Gibson’s ex-girlfriend, found out the hard way.  A California appeals court just affirmed a judgment that absolved Gibson of his obligation to make settlement payments to Grigorieva.  Gibson and Grigorieva both sued each other in 2010.  He sued to establish paternity of the couple’s daughter.  She sued him for defamation and battery.  They eventually reached a settlement agreement in which Gibson would pay $20,000 per month for child support and in exchange he was declared the father of the child. Additionally, to resolve the battery and defamation claims, Gibson agreed to pay Grigorieva $750,000.00 in three installments.

Sometime after receiving the first $250,000.00 payment, Grigorieva appeared on the Howard Stern Show and made comments that Gibson argued violated the settlement agreement.  The California appellate court agreed and Grigorieva is not going to receive any of the remaining $500,000.00 from the settlement.

Another person had his $80,000.00 settlement voided when his daughter decided to post something on Facebook.

If you sign something that contains a confidentiality provision, it’s best to comply, or it could end up costing you.  Just ask Oksana Grigorieva.