Closing a real estate transaction can be a long, complex process, which many first-time buyers find confusing and intimidating. In fact, some of the most important steps in the process have to be taken care of long before you meet with the sellers at the title company. Here are a few tasks that should be completed before closing.

3 Important Steps to Complete Before Closing

1. Open an Escrow Account

In most real estate sales, you’ll have to hold some funds in escrow until the conclusion of the deal. An escrow account gives both buyers and sellers the security of knowing that the earnest money, deposits, and other costs are held by a neutral third party. Opening an escrow account with the title company you intend to use can streamline the process and prevent unexpected last-minute issues.

2. Commission a Title Search

After closing, it’s the buyer’s responsibility to settle any competing claims, even if you didn’t know about them when the sale was finalized. To identify any potential issues, your title company will carefully comb through public records and sales documents to ensure there are no outstanding liens or descendants of previous owners with a valid claim to the property.

3. Buy Title Insurance

Title insurance provides another layer of protection against third-party claims that may arise later. If the title company missed a lien or failed to identify a competing claim, your title insurance will cover the cost, potentially saving thousands of dollars. Most real estate experts recommend getting title insurance equal to the selling price of the property.
 

As one of Pinellas County, FL’s leading title companies, Scarab Title & Escrow Services, LLC. delivers reliable service backed by the most sophisticated tools in the industry. They pride themselves on streamlining every step of the process and treating every client like family. Visit their website for more on their array of services, get more tips and advice on Facebook, or call (727) 378-4553 with any questions.