Net to Seller?
When it comes to selling a property, the net to seller amount is the money that the seller will actually receive after deducting all applicable fees and expenses related to the sale.  Obtaining a Net to Seller from different title agencies is the best way to see the price difference between each company as some fees are based on the selling price of the property.  Most title agencies will provide a Net to Seller to you for free.

Seller Fees?
Who is responsible for each fee is mainly determined by the Purchase contract submitted.  The following example is based on a typical Columbus MLS Purchase contract that defaults the cost of property tax, transfer tax, closing fees, title policies to the seller.

The fees that are take out of your selling amount include:

• Brokerage and Real Estate Agent Commissions:  This amount/percentage should be found on your listing agreement.

• Home Warranty: if you are providing one per contract.

• Property and Transfer Tax:  Property taxes are paid in arrears.  Taxes for the current year get added as a proration calculated by the estimated closing date.

• Closing Fees: These include tile search, deed preparation and exam. These fees can vary from company to company.   

• Title Owners Policy:  The price is based on the selling amount and will vary by the underwriter utilized.

• Mortgage Pay Off: Your current lender’s website should explain how to obtain this amount. A payoff amount it not necessary the balance of the loan.

• Home Owners Associations (HOAs): Some HOAs charge a fee — ranging from $0 to $500 — to obtain a HOA disclosure.  From this disclosure, a proration can be calculated by the closing date. The title agency will secure and and calculate amount due prior to closing.  This fee and proration are not usually available on the initial Net to Seller.

What is a title in real estate?
A title (or deed) indicates that a homeowner lawfully owns a property. Titles are clear or “clean” if the title holder legally holds the title and there are no claims against them by outside parties, such as local governments or contractors. These claims, called liens, are placed if the homeowner fails to pay bills or taxes.The lien-holder can seize the property if the liens are not paid in a certain amount of time.

Associates Title will make sure all  liens or judgments are resolved before a purchase transaction is complete. The title is then protected by title insurance policies which help lenders and home buyers avoid financial losses if problems arise with the title even after the home buyer moves in.

Title search & title insurance?
Determining that a title is clear and free of liens involves conducting a title exam. We search public records looking for liens, encumbrances, and defects during the title exam.

Encumbrances occur if someone other than the owner claims an interest in the property. Defects are omissions or errors that affect the title.

Records examined may include deed records, tax records, mortgage documents, home equity lines of credit, bankruptcy filings, wills and trusts, easements, court judgments, liens, child support agreements, and divorce decrees.

Any problems identified must be cleared before we can issue the title. Clearing a title can sometimes be as simple as asking for the removal of a satisfied lien or correcting a clerical error. Clerical errors can include omitting a co-owner’s name or even misspelling a name.

Once the title is clear, the lender and buyer receive a document called a title commitment. The document outlines the terms of the title insurance, which will be issued after the closing occurs. We deliver all of our documents in a secure online portal.

Encroachment - means something is over the property line.

Small encroachment (i.e. fence):

• To the buyer they are allowed to back out of the contract if they want.  They need to be aware that in future a neighbor might ask for a removal or relocation of encroachment.

• To the Lender, somethings small then the Lenders Policy will insure over it.

Large encroachment (i.e. garage or shed on a foundation):

• To the buyer they are allowed to back out of the contract if they want.  They need to be aware that in future a neighbor might ask for a removal or relocation of encroachment.

• To the Lender, Overage might not be covered.  Possible to do a regular Lender Policy with an exceptions.  OR might stop loan from going through if encroachment is large enough.

Escrow
Associates Title also handles the accounting aspect of the real estate transaction and moves money between the transaction parties. We act as an impartial intermediary and hold the money in an escrow account until the closing.

Balancing the escrow account is an important step in the accounting process. The title company must ensure that the money deposited in the account equals the money that will be removed. After the closing, the buyer and lender place money in the escrow account. The title company then distributes the funds to the seller, real estate agent, title company, and other parties.

Earnest Money can be transmitted to us via our website with a simple two-step process that does not require you to loggin into your bank.  Visit associatestitleinc.com/earnest-money to view this option.   

Closing Timeline
The closing timeline begins almost as soon as an owner accepts an offer and includes these steps:

Order Opening 3-5 Days: The title agency informs all parties that they will be handling the closing. During this phase, employees conduct a title search and send a title commitment and closing protection letter to the lender.

Processing 2-3 Weeks: Closing prep involves gathering accounting information, balancing the escrow account, clearing up title issues, and preparing closing documents.

Closing Day 1 Day: The buyer and seller sign closing documents on the closing date.

Post Closing 1-3 Days: We issue the title insurance, disburse money from the escrow account, and fund the loan. Documents are also recorded at the recording office.