In Southwestern Ohio, if you’re in the process of selling or buying real estate, the house or real estate property closing is typically a “direct exchange” or “round table closing.” Using the services of a title & escrow agent helps protect buyers and sellers alike. 

The Purpose of a Title & Escrow Agent

When buying real estate, transferring the title is a crucial step that legally determines the ownership of the house. If a seller transferred the title before receiving payment, they might risk not being paid. And if the title is held until after money is transferred, the seller might delay turning over the title, causing problems for the buyers.

To make buying real estate safer for both parties, a third party such as an attorney or a specialized title and escrow agent controls the assets, making sure both the title and payment change hands smoothly.

How It Works

After both buyer and seller have finalized their agreement (purchase contract), the buyer goes through the process of finalizing their financing with the bank, obtaining final inspections as needed, and putting all the paperwork in order for buying the property.

Getting title insurance and a title report at this stage is a smart step to avoid any problems caused by faulty paperwork. In addition, closing protection coverage may be purchased (when a title insurance product is purchased) for the benefit of the buyer, seller and/or lender for Ohio properties to protect the funds utilized in the closing process. 

The seller will need to furnish a deed to transfer title to the buyer. The seller may elect to have an attorney of choice or choose to have the attorney utilized by the title and escrow agent.  

The title and escrow agent will prepare the closing statement, and the buyer and the lender—and occasionally the seller—will send or wire applicable funds to the title and escrow agent. 

Lastly, all the finalized paperwork will be signed by both parties; the monies will be transferred according to written instructions, closing statement, and agreements between the parties; and the buyer will receive ownership of the home or property. The title and escrow agent is typically responsible for recording the legal documents after closing.

A cash sale is handled in much the same way, except no bank financing is involved.

If you’re buying real estate in Ohio and need help navigating the process, choose All Points Title & Closing in Hamilton, OH. For over 30 years, this trusted and dedicated title insurance company has made the home buying process more secure for everyone involved. To schedule a consultation, call them at (513) 863-7600, or send them a message online.