Title is the legal term that refers to your ownership right to your property. In order to own, use, or dispose of property, there must be a record of title listed in the local County Clerk's office stating that you are the legal owner of said property. This proof of ownership must be free of defects or claims to ownership so that it can be properly transferred to the buying party. Title can be disputed when other entities, such as a lender, seek claim to the property due to some unfulfilled obligation or there was an issue in the recording of the previous title.

Title insurance is a policy issued by a title company, that backs your legal claim to property. Property disputes due to title defects are common and can be caused by:

• Avoided disclosure of using property as collateral for an unpaid loan.
• Fraudently claimed to be sole owner.
• Failure to pay real estate taxes.
• Improper execution of documents.
• Simple mistakes in the recording of documents.

As a home seller, it is important to have your title reviewed early on in the homeselling process. Let us search your title before you have a buyer and run into problems at closing.

Settlement, also know as a property "closing," is the step in the homeselling process where ownership of a property is officially transferred from the current owner to the purchasing party. Settlement is the final stage in the homeselling process and is also the step where purchasing funds are legally exchanged with the seller. There is a substantial amount of paperwork involved in settlement, so having those documents reviewed by an attorney prior to signing is a good idea.

An escrow is an arrangement in which a neutral third party holds documents or funds on behalf of a buyer and seller. The third party, also know as the escrow holder, distributes funds and documents according to the buyer's and sellers instructions.
How does escrow work:

1. Buyer and Seller agree to the terms of transaction.
2. Buyer submits approved funds to escrow holder.
3. Seller signs over property to Buyer.
4. Buyer accepts ownership of property and a new deed is recorded.
5. Escrow holder disburses funds to Seller.

Closing costs cover the services required to process the property transaction. These costs normally account for about 1% - 2% of the property's purchase price. The expenditures you will be making for closing are for:

• Title Search - A detailed review of public records on a property to confirm a seller's right to transfer ownerhsip.
• Municpal Lien Search - A thorough examination of possible unrecorded municipal liens on the property, such as expired permits, code violations, or unpaid fees.
• Owner's Title Policy - New title insurance policy issued to the buyer of the property.
• Settlement Fee - Preparation and processing fees paid to closing agent; including wires, copies, postage and shipping.
• Doc Stamps on Deed - A government tax paid to the county clerk when a new deed is recorded. This tax is generally 0.7% of property's purchase price.