Buying or selling a property can be complex, with many questions along the way. To help you navigate the process with confidence, we've compiled answers to the most frequently asked questions about our services, title insurance, and the closing process. Whether you're a first-time homebuyer, a seasoned investor, or a real estate professional, our goal is to provide clarity and peace of mind every step of the way.
Choose a category below or use the search box to explore topics. Please contact us if you have additional needs or questions.
What is a title company?
A title company verifies that the title to the property being sold is legitimate and free of any liens or issues. In Missouri, the title company also handles the closing process and provides title insurance to protect against future claims or disputes.
Why is title insurance necessary?
Title insurance protects against potential issues that could arise from past ownership, such as undiscovered liens, errors in public records, or fraud. It ensures that you are protected from financial loss in case of a title defect. Missouri law requires that all real estate transactions be recorded with the county recorder of deeds, ensuring that your ownership rights are properly documented and protected.
What is the difference between lender's title insurance and owner's title insurance?
Lender's title insurance protects the lender’s interest in the property and is typically required if you're financing the purchase. Owner's title insurance protects the buyer’s equity and is usually optional but highly recommended to protect your investment.
How much does title insurance cost?
The cost of title insurance varies based on the property's value and location. It is usually a one-time premium paid at closing, and rates are often regulated by the state.
Who chooses the title company?
Buyers and sellers can choose to use the same title company, but it is not required except in special situations. Often, lenders and Realtors provide referrals to title companies they have used before. It’s important to choose a title company with a strong reputation and experience, like Elite.
How long does the closing process take?
The closing process typically takes about 30 to 60 days from the acceptance of the offer to the actual closing date, depending on the complexity of the transaction and any issues that may arise.
The Title Search Process
What does a title search involve?
A title search involves examining public records to verify the property's legal ownership and to check for any liens, claims, or other encumbrances that could affect the transfer of ownership.
What does a title search reveal?
A title search reveals important information about the history and legal status of a property. This includes identifying the current legal owner, uncovering any liens, encumbrances, or claims against the property, and verifying that the title can be legally transferred to the new owner. In Missouri, the title search also checks for unpaid property taxes, easements, and any restrictions or covenants that might affect the use of the property. By uncovering these details, the title search helps ensure that there are no surprises or legal obstacles that could interfere with the sale or ownership of the property.
How long does a title search take?
The entire closing process typically takes about 30 to 60 days from the acceptance of the offer to the actual closing date, depending on the complexity of the transaction and any issues that may arise. Title defects are usually discovered within the first two to three weeks after the process begins.
What happens if there is an issue found during the title search?
If a problem is discovered during the title search in Missouri, the title company will work diligently to resolve the issue before closing. Common issues, such as unpaid liens or errors in public records, can often be corrected with the help of the title company and other parties involved.
Closing and Settlement
What is the closing process?
The closing process is the final step in a real estate transaction where ownership of the property is officially transferred from the seller to the buyer. In Missouri, this process typically involves several key steps:
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Reviewing and Signing Documents: Both parties, along with their agents, will meet to review and sign all necessary documents, including the deed, settlement statement, and loan documents if applicable.
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Payment of Closing Costs: The buyer will pay any remaining closing costs, which may include title insurance, taxes, and recording fees.
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Transfer of Funds: The buyer’s funds, including any mortgage amount, are transferred to the seller through an escrow account managed by the title company.
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Recording the Deed: The title company then records the deed and other relevant documents with the local county recorder of deeds, officially documenting the transfer of ownership.
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Final Disbursement: Once everything is recorded, the title company disburses the funds to the seller and any other parties owed money, such as the lender or real estate agents.
What happens at closing?
During closing, all parties involved in the transaction sign the necessary documents, the buyer pays any remaining costs, and the title company finalizes the transfer of ownership. The title company also disburses funds and records the new title with the appropriate government office.
What should I bring to closing?
You should bring a government-issued ID, proof of homeowner’s insurance, any required funds (preferably a wire transfer), and any other documents your lender or the title company has requested.
Can I close remotely?
Elite Title is proud to offer remote or digital closings, allowing documents to be signed electronically. This is particularly useful for buyers or sellers who are out of town or prefer to avoid in-person meetings.
What are closing costs?
Closing costs are the fees and expenses that both buyers and sellers incur during the finalization of a real estate transaction. In Missouri, these costs typically include a variety of charges, such as:
- Title Insurance Premiums: Fees for both the lender’s and owner’s title insurance policies, which protect against future claims on the property.
- Loan Origination Fees: Charges from the lender for processing the mortgage.
- Appraisal and Inspection Fees: Costs for property appraisals and inspections to assess the value and condition of the home.
- Escrow Fees: Fees for the escrow service provided by the title company, which handles the transfer of funds and documents.
- Recording Fees: Costs for recording the new deed and other documents with the local county recorder of deeds.
- Property Taxes and Insurance: Prorated property taxes and homeowner’s insurance, which may need to be paid upfront at closing.
- Attorney and Notary Fees: If legal representation or notary services are required during the transaction.
- Survey Fees: Costs for a property survey to verify boundaries and identify any encroachments.
In Missouri, the specific closing costs can vary depending on the location, the terms of the sale, and whether the buyer or seller is responsible for certain fees. It's important to review the settlement statement provided by the title company before closing to understand all the costs involved.
What services does Elite title provide?
Elite Title offers a range of services to facilitate a smooth and secure real estate transaction, including conducting a title search to verify the property’s legal ownership and uncover any potential issues, providing title insurance to protect against future claims, managing the closing process, and ensuring that all documents are correctly prepared, signed, and recorded.
Additionally, Elite handles escrow services, holding and disbursing funds to ensure all parties meet their obligations before the transaction is finalized.
Click here to learn about our full range of services.
What is escrow and how does it work?
Escrow is a neutral third-party service provided by the title company to securely manage funds and documents during a real estate transaction. In Missouri, once the buyer and seller agree on the terms of the sale, the buyer typically deposits earnest money into an escrow account. The title company then holds these funds, along with any other payments, until all conditions of the sale are met. This includes completing the title search, obtaining necessary approvals, and ensuring that both parties fulfill their contractual obligations. Once everything is in order, the title company disburses the funds, finalizes the transaction, and records the property transfer.
What is a 1031 Exchange?
A 1031 Exchange, also known as a like-kind exchange, is a tax strategy that allows property owners to defer paying capital gains taxes on the sale of an investment property if the proceeds are reinvested into a similar, like-kind property. This strategy can be beneficial for real estate investors looking to upgrade or diversify their portfolio while postponing tax liabilities. To qualify, the exchange must meet specific criteria and deadlines set by the IRS.
Post-Closing and Other Considerations
What happens after closing?
After closing, Elite’s work continues to ensure the transaction is fully completed. First, we will record the deed and any related documents with the local county recorder of deeds in Missouri, officially transferring ownership to the buyer. We will also distribute the funds from the sale to the appropriate parties, including paying off any existing mortgages on the property, and ensuring all liens are cleared. Within a few weeks after closing, the buyer will receive the final closing documents, including a copy of the recorded deed and title insurance policy, confirming their legal ownership of the property.
How do I get my deed after closing?
After closing, Elite will record the deed with the county recorder of deeds in Missouri. Once the deed is recorded, it becomes a public document. The buyer will typically receive a copy of the recorded deed by mail within a few weeks after closing.
What if I lose my owner's title policy?
If you lose your owner’s title policy, don’t worry—your coverage remains in effect even without the physical document. You can request a replacement copy from the title company that issued the policy. If the company has changed names or gone out of business, the Missouri Department of Insurance, Financial Institutions, and Professional Registration can assist you in locating the company’s successor. It’s a good idea to keep a digital copy of your title policy in a secure place for easy access in case you need it in the future.
Special Situations
What happens in the case of a foreclosure?
In Missouri, if a property goes into foreclosure, the lender will initiate the foreclosure process, which typically involves a public auction. The title company plays a crucial role in this process by conducting a title search to ensure that the foreclosure sale can proceed without any unresolved liens or title issues. After the sale, the title company will also handle the transfer of ownership to the new buyer and may issue a new title insurance policy to protect the buyer from any claims related to the previous ownership.
Can title insurance help with a short sale?
Yes, title insurance can play a critical role in a short sale. In a short sale, the property is sold for less than the remaining mortgage balance, and the lender must agree to accept the reduced amount. The title company conducts a title search to ensure that all liens and encumbrances are addressed, and that the sale can proceed without legal complications. Once the short sale is approved by the lender, the title company will facilitate the closing process and issue a title insurance policy to the new buyer, protecting them from any future claims that might arise due to the previous owner’s financial difficulties.
How does a title company handle a dispute over the property?
If a dispute over a property arises, such as a challenge to the ownership or a claim against the title, the title company steps in to help resolve the issue. If you have title insurance, the title company will provide legal defense and cover the costs associated with defending your ownership rights. The company will work to settle the dispute, which may involve negotiating with the claimant or addressing any errors in the public records. Having title insurance ensures that you are protected against legal challenges to your property ownership.
What is a quitclaim deed?
A quitclaim deed is a legal document used to transfer ownership of real estate from one party to another without making any guarantees about the title's validity. It conveys whatever interest the grantor (the person transferring the property) has in the property to the grantee (the recipient). Unlike a warranty deed, which provides a guarantee that the title is clear and free of encumbrances, a quitclaim deed offers no such assurances. It’s commonly used in situations like transferring property between family members or resolving issues with the title.