Real Estate Closings

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Real Estate Closings

Trust Torian Law to handle your residential or commercial real estate transaction.

Torian Law will work with you, your realtor, and your lender from start to finish to make your transaction as smooth and efficient as possible. The Torian Law team prides itself on timely, professional closings, with an option for Lender’s and/or Owner’s title insurance to protect your most valuable investment.

A real estate closing, also known as a settlement, is the final step in executing a real estate transaction. It is the process where the ownership of a property is transferred from the seller to the buyer. This event is crucial in both residential and commercial real estate transactions and involves several key steps and participants. Here’s an overview of what typically happens during a real estate closing:

  • Finalizing the Financing: If the buyer is obtaining a mortgage, the closing is when the loan is finalized and funds are provided to the buyer. The buyer must have already secured approval from a lender, and at closing, the mortgage agreement is signed.
  • Reviewing and Signing Documents: Numerous legal documents need to be reviewed and signed at the closing. These include the deed of the property, the bill of sale, the mortgage agreement (if applicable), and the closing disclosure, which details the terms of the sale, the final closing costs, and any remaining financial transactions.
  • Payment of Closing Costs: Both parties are responsible for various fees and expenses, known as closing costs. These can include loan origination fees, appraisal fees, title searches, title insurance, taxes, and agent commissions. The exact costs and who pays what will have been negotiated beforehand and outlined in the closing disclosure.
  • Transferring the Title: The legal title of the property is transferred from the seller to the buyer. This is typically done by signing the deed of the property over to the buyer. The deed is then recorded with the local government, officially marking the buyer as the new property owner.
  • Handing Over Possession: After all documents are signed and payments are made, the seller hands over the keys and any other necessary items (like garage door openers or security codes), and the buyer takes possession of the property.
  • Settlement Statement: A settlement statement (also known as a HUD-1 or Closing Disclosure) is provided, summarizing the financial transactions enacted during the process.

Get Familiar With Title Closing Terms:

What is Title?

A title is a document that shows legal ownership of a property or asset. A Lender’s Title Insurance policy only protects the lender against loss. It does not protect the homeowner.

What does Title Search mean?

What we do as your Title Company is search the court records to confirm who currently owns the property, whether there are any liens or encumbrances recorded against the property, and whether there are any defects in title to the property. A clear title is necessary for any real estate transaction.

What does Title Defect mean ?

The term “title defect” refers to a problem with the title to the property that you are purchasing or already own. A title defect can be in the form of a lien, mortgage, or judgment or can be due to someone else claiming an ownership interest in the property. A title defect prevents title from legally transferring to someone else.

Meaning: if you have a title defect, you may not be able to sell your property at some point in the future.

What is Title Insurance?

Title Insurance is a form of indemnity insurance that protects lenders and homeowners from financial loss due to defects in title to a property. Title Insurance protects the homeowner by hiring an attorney to represent the homeowner (or lender) in the lawsuit brought by another person. There are two basic types of Title Insurance Policies: (1) Lender’s Title Insurance Policy and (2) Owner’s Title Insurance Policy.

The typical scenario plays out like this: A homeowner purchases property only to later find out that another person has an ownership interest in or a lien on the property. If this “other person” files a lawsuit to enforce their ownership interest or their lien, the homeowner must then defend themselves and their property.

What is Lender's Title Insurance?

This is sometimes called a “Loan Policy.”

In order to borrow funds to purchase your home, most lenders require that buyers purchase a Lender’s Title Insurance policy to protect the lender. This means your lender, most likely, will require that you purchase a Lender’s Title Insurance Policy. This is nearly standard practice across the board for lenders in Louisiana.

Please know, however, that a Lender’s Title Insurance policy only protects the lender against loss. It does not protect the homeowner!

What is Owner's Title Insurance?

In order for a homeowner to be protected by Title Insurance, the homeowner must purchase a separate policy of title insurance called “Owner’s Title Insurance.” We recommend all buyers and re-financers of real property purchase Owner’s Title Insurance.

Why do I Need Owner's Title Insurance?

A home, most likely, will be the greatest single investment you will make. When you purchase a home, you are purchasing more than just a building or land; you are purchasing the right to occupy and use the space for you and your family for years to come.

When we search the court records on your behalf, we are doing our best to make sure you are purchasing property that does not have any title defects. However, even the most skilled title professionals may not find all problems associated with a property. Some risks, such as title issues due to filing errors, forgeries, or undisclosed heirs, are difficult to identify.

The last thing you want to deal with is another person claiming they have an ownership interest in your property. When you buy an Owner’s policy of Title Insurance, you are purchasing some peace of mind to know that if the any of the foregoing issues pop up later on down the line, you will be protected!

Owner’s Title Insurance protects you for as long as you own the home!!

What are the risks of not purchasing Owner's Title Insurance?

If you do not purchase an Owner’s Title Insurance Policy and one of the above-described issues arises after you purchase the property, you will be forced to defend the issue at your cost and your ownership to the property may be severely limited and/or precluded.

What is the Cost of Title Insurance?

Title insurance rates are regulated by the State of Louisiana, and are determined by a number of factors, such as: purchase price, loan amount, required endorsements and dates of issue.

Since we strongly recommend every buyer obtain an Owner’s Title Insurance policy, the costs associated with Owner’s Title Insurance will be included in your closing costs unless you advise otherwise.

The good news is: the cost of Owner’s Title Insurance is only paid once at the time of closing and not annually as other types of insurance requires.

Who picks the Title Company?

The buyer has the federally protected right under the provisions of the Real Estate Settlement Procedures Act (RESPA) to choose the title company they wish to use. The LREC Purchase Agreement is prepared with the buyer determining the settlement service provider.

Call Torian Law today for assistance with any residential or commercial real estate transaction.