Frequently Asked Questions
Find answers to common questions about title insurance, closing services, buying, selling, and refinancing.
Title Insurance Basics
What is title insurance?
Title insurance protects you against covered title defects, such as a previous owner’s debt, forgeries, liens, and other claims of ownership that may have occurred prior to you purchasing your home.
“Title” gives the person the right to ownership to a certain piece of real estate property. A title report is required in a home purchase or refinance transaction.
What is a title search?
The title search is typically one of the first steps in our process. A title search involves researching the public records to uncover possible title defects and associated risks that affect the ownership rights to the property being purchased, including liens, assessments and judgments. A title search must be completed before a title commitment is issued.
What is a title commitment?
A title commitment is effectively a promise to issue a title policy after closing, and contains the terms, conditions and exclusions that will be in the actual title insurance policy. The title commitment also identifies requirements and title defects that need to be addressed prior to closing so that the title policy can be issued.
What is a lien?
Liens are a legal claim that gives creditors a right to keep possession of property belonging to another person until a debt owed by that person is paid. If a contractor was never paid for work completed by the previous owner, they may have put a lien on the property. If that lien isn’t discovered during a title search, it would be your responsibility to resolve it once you become the property owner.
What is a title defect?
A defect is an issue with the property title that impacts the transfer of property ownership. A previous owner might have forged a signature or not paid real estate taxes, and defects like that might go undiscovered in the title search process. If you have title insurance, you won’t be responsible for dealing with any claims and legal fees associated with undiscovered defects — your title company will.
What if the title search uncovers issues?
If a lien is uncovered on the property and the lien was, for example, filed by a contractor who performed work and was never paid, we will work with the contractor and the seller on a resolution. The resolution may involve the seller paying off the debt. If the seller doesn’t have the money to pay the debt, we may negotiate to wrap the cost of the debt into the seller’s closing costs — ultimately deducting the expense from the home sale proceeds. Don’t worry, our professionals work with the stakeholders directly to resolve the stickier issues until we achieve clear title.
What is clear title?
The goal of a title search is to produce “clear title”. A clear title is a title that is without liens, poses no question to legal ownership and is marketable to future sellers.
Do I get to pick my own title company?
Yes, and you should absolutely shop around to find the best rate. Your real estate agent may recommend a specific title company, but you have the right to choose your title provider.
What if I have additional questions?
We would be happy to answer any additional questions you have. Please go to the contact us page and we will respond to your request within 24 hours.
Who will I be working with?
The team assigned to your transaction typically consists of an Escrow Officer and a Processor. The Processor will work with you during the initial steps of the process to gather your information and provide you updates. The Escrow Officer will work with your lender to finalize all documents and make sure the closing disclosure includes the correct financial information for the transaction.
Refinancing
I am refinancing my home, what is the process?
1. Loan Application
The refinance process begins when you apply for a refinance loan with your lender. Your lender will begin collecting financial information and documentation needed for loan approval.
2. Introduction
Once Capital Reserve Title receives the refinance order from the lender, you will receive a phone call and email introducing our team and requesting any additional information needed to begin processing the transaction.
3. Title Search
Simultaneous to the introduction, our team will order a title search on the property to identify any title defects, liens, or associated risks that could impact the refinance transaction.
4. Coordination with the Lender
Once the title search is completed, Capital Reserve Title will send the Title Commitment and preliminary figures to your lender while coordinating any title requirements needed for closing.
5. Underwriting & Loan Approval
Your lender will complete the underwriting process by reviewing your financial information, appraisal, and supporting documentation. Once approved, the lender will issue a “clear to close.”
6. Signing Your Documents
Once final approval and loan documents are received from the lender, Capital Reserve Title will contact you to schedule the signing of your refinance documents with a notary public.
7. Recording & Funding
After the signed documents are returned to the lender and funding is approved, Capital Reserve Title will:
- Pay off any existing mortgage(s)
- Record the new mortgage documents with the county
- Disburse any remaining funds, if applicable
8. Transaction Complete
Once the documents have been recorded and funding has been completed, your refinance transaction is officially finalized.
What are my responsibilities during a refinance transaction?
During the refinance process, borrowers are typically responsible for:
- Providing any financial documentation requested by the lender during underwriting, including income, asset, and employment verification.
- Responding promptly to requests from the lender or Capital Reserve Title to help keep the transaction moving toward closing.
- Obtaining or updating homeowners insurance information if requested by the lender.
- Reviewing the Closing Disclosure provided by the lender prior to signing.
- Arranging for certified funds or wire transfers if funds are required for closing.
What should I bring to my refinance closing?
Step 1: Photo ID
The notary is required to confirm your identity. A driver’s license or current passport are two examples of approved documents you may bring to closing.
Step 2: Voided Check
In some cases, a voided check may be requested to help verify the account information for incoming or outgoing wire transfers.
Step 3: Certified Funds or Wiring Information
If funds are due at closing, please coordinate with your lender and Capital Reserve Title regarding acceptable payment methods and wiring instructions prior to closing.
Buyer
I am the buyer, what is the process?
1. Receive Signed Contract
Capital Reserve Title will receive a signed contract by both the buyer and seller for the purchase of a home.
2. Introduction
Once the details of the transaction are entered into our system, you will receive a phone call and an email introducing Capital Reserve Title and a request to provide us with some basic information that will allow us to begin processing the transaction.
3. Title Search
Simultaneous to the introduction, our team will order a title search on the property to identify any possible title defects or associated risks with the property being purchased.
4. Coordination with the Lender
Once the title search is sent back to Capital Reserve Title, we will send the Title Commitment and preliminary closing disclosure to your lender.
5. Underwriting & Loan Approval
Capital Reserve Title will request the deed for the transfer of the property and a survey to be completed.
6. Signing Your Documents
Once we have received approval and final documents from the lender, also known as a “clear to close”, then we will contact you to schedule you for the signing of your documents with a notary public. Once everything is signed, we will send those documents to the Lender.
Recording & Funding
Once the Lender approves the documents and sends funds to Capital Reserve Title, we will record those documents with the county and disburse all funds as guided by the contract.
Move In!
We will let your real estate agent know once the documents are received by the county and you can work with your real estate agent to receive the keys to your new home!
What are the buyer’s responsibilities during closing?
During the closing process, buyers are typically required to:
- Make an “earnest money” deposit into an escrow account, where funds allocated for closing costs will be held by Capital Reserve Title until the closing date.
- Provide any documentation and information requested by the lender in the loan underwriting process.
- Obtain homeowners insurance. Many mortgage lenders require evidence of coverage to approve the loan.
- Arrange for utilities to be transferred into their name effective on the closing date.
- Perform a final walk-through.
What should you bring to closing?
In addition to patience, you absolutely must have the following:
Step 1: Photo ID
The notary is required to confirm your identity. A driver’s license or current passport are two examples of approved documents that you could bring with you to the closing to validate your identity.
Step 2: Final Purchase and Sales Contract
Just in case you need to double-check a detail against closing costs.
Seller
I am the seller, what is the process?
1. Signed Contract
Capital Reserve Title will receive a signed contract by both the buyer and seller for the purchase of a home.
2. Introduction
Once the details of the transaction are entered into our system, you will receive a phone call and an email introducing Capital Reserve Title and a request to provide us with some basic information that will allow us to begin processing the transaction.
3. Title Search
Simultaneous to the introduction, our team will order a title search on the property to identify any possible title defects or associated risks with the property you are selling.
4. Coordination with the Buyer’s Lender
Once the title search is sent back to Capital Reserve Title, we will send the Title Commitment and preliminary closing disclosure to the buyer’s lender.
5. Ordering of the Deed and Survey
Capital Reserve Title will request the deed for the transfer of the property and a survey to be completed.
6. Signing Your Documents
Once we have received approval and final documents from the buyer’s lender, also known as a “clear to close”, then we will contact you to schedule you for the signing of your documents with a notary public.
7. Recording & Disbursing
Once the Lender approves the documents and sends funds to Capital Reserve Title, we will record those documents with the county and disburse all funds as guided by the contract.
8. Exchange of Keys!
We will let your real estate agent know once the documents are received by the county and you can work with your real estate agent to transfer the keys to the buyer.
What are the seller’s responsibilities during closing?
During the closing process, buyers are typically required to:
- Remove all your possessions from the property, unless they’re specified to stay under the contract. Major appliances, for instance, are sometimes negotiated into a deal.
- Make any repairs you have agreed to make.
- Clean the home right before the closing date. A good rule of thumb is to leave it as clean as you’d like to find it if you were the buyer. (Typically required unless the home is sold in as-is condition.)
These items aren’t typically required but they’re either a good idea to consider or a nice gesture for the new owner:
- Notify subscription services, creditors and acquaintances of your new address and set up mail forwarding.
- Collect any manuals and warranties you have for items in the home, such as the HVAC system and any appliances you’re leaving behind. Leave them on the kitchen counter for the buyer, along with any spare keys and garage door openers.
- Shut off water valves to prevent any leaks between the time the buyer takes possession and the time they actually move in.
What should you bring?
Step 1: Photo ID
The notary is required to confirm your identity. A driver’s license or current passport are two examples of approved documents that you could bring with you to the closing to validate your identity.
Step 2: Voided Check
Please bring a voided check with you to the closings so the notary can make a copy and provide that to Capital Reserve Title. This will allow us to verify the bank account in which to wire the funds.
Step 3: Final purchase and Sales Contract
Just in case you need to double-check a detail against closing costs.