Welcome Home: You’re under contract – now what?
You have a Realtor, and together you shopped for the perfect property and chose the best one. You made an acceptable offer, provided earnest money, and now you’re under contract. What happens now, between contract and closing? Brooke Roberts, from the Land Title Guarantee Company, provides this information and advice about how a title company will help both the buyer and the seller get to closing!After you sign the contract to purchase your property, one of the first things your Realtor will do is order title insurance from a title company. Most buyers and sellers rely on their Realtor’s expertise to choose the title company when a contract is finalized. The title company industry in Colorado is a competitive business and highly regulated by the Colorado Division of Insurance. Many Realtors have relationships and trust certain title companies; therefore, they tend to lean towards choosing a consistent title company to get the deal closed efficiently and accurately. In the state of Colorado, title companies are used to close real estate transactions. The title company searches and examines the property background or history to ensure that the property is free and clear of any hidden defects. Title companies issue the title commitment and policy. They also have Escrow Officers or “Closers,” people who handle the transaction between the buyer, seller, lender, and agents. The title company records all the documents, handles the payoffs, and in the end, closes your deal.There are several important factors involved when choosing a credible title company. It is important that earnest money is held in a local bank, and that the earnest money is deposited into a CARHOF (Colorado Association of Realtors Housing Opportunity Foundation) trust account. CARHOF promotes safe, decent, and affordable housing for all in Colorado. CARHOF collects interest on escrow accounts and donates the money to nonprofit and public agencies that help low to moderate income families with their housing needs. The title company underwriter must be financially stable, with a good claim history. They must also demonstrate professionalism, provide competitive pricing, be knowledgeable and use experienced Escrow Officers or Closers who provide excellent customer service. The Real Estate Settlement Procedures Act (RESPA) was enacted in 1974 to provide consumers with insights of settlement costs and to reduce the costs of closing by the elimination of referral fees and kickbacks. Through the years, the Department of Housing and Urban Development (HUD) has issued regulations and policy statements to provide RESPA guidance to industry and consumers alike.Buying and/or selling a property is an important event in your life. Make sure that you choose a capable Realtor, and that together, your are working with a title company, trusted to get the job done. TheTeam@Elich.com is at Re/Max Properties of the Summit, 305 Main Street in Frisco. Butch Elich & Paula Parker are longtime locals providing real-estate customers with award winning service. Find them at http://www.elich.com or search for them by name on Google, Twitter, or Facebook.
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