During a typical real estate transaction, we provide a title policy to the buyer, seller or lender. We also offer closing services to ensure a smooth transfer of ownership. However, some clients may opt to close a transaction without the assistance of a title company/policy-issuing title agent. It’s important to note that choosing to close without title-related services means that you may not be insured during the “Gap” period. What is the Gap period and what are the benefits of having insurance during this time?
Protection During the “Gap” period
During the “Gap” period, we provide protection for the buyer and lender against covered liens and title defects that may arise. This period is between the date of the last courthouse record search and the recording date of the new deed and/or mortgage. The protection covers any issues that are recorded against the property during this time and is provided through the title policy.
Payoffs
We ensure that all existing mortgages and other liens are paid off after a real estate closing. This is based on written payoff instructions.
Defects in Title and Recordable Documents
We typically fixes any title defects before closing a transaction. This includes errors in legal descriptions or party names, and resolving any legal issues that may affect the property.
An Itemized Listing of Receipts and Disbursements
We are required by federal law to provide an itemized settlement statement that lists all the receipts and disbursements that resulted from the transaction.
