Closings

As part of our real estate practice, Penson Law Firm, P.A., provides real estate closing services, both residential and commercial. In conjunction with our closing services, we provide title searches, title examinations and title insurance to our purchasers and their lending institutions. While many companies sell title insurance, an attorney trained and licensed in the complexities of real estate law is best qualified to advise a party and to handle in a real estate transaction. Title companies may only prepare closing documents and issue a title policy. They may not represent a buyer's legal interest or give legal advice. It is, therefore, best to have a real estate attorney conduct a thorough title examination and issue title insurance in conjunction with advising and guiding a buyer or seller through the real estate closing process.

There are many players in a closing and often people are confused about the role of an attorney versus a title company and just exactly what role title insurance plays. As attorneys, we may be retained by either a buyer or seller to represent their interests throughout the closing process, or we may simply be requested to close the transaction as an escrow agent not representing one party's interest over the other. In either case, we will conduct a title examination to make sure the property being conveyed is free of title defects and the seller is able to pass what is known as "marketable title" to the buyer. Upon making a determination that the title is clear and marketable, we will issue a title insurance policy to the new owner, the owner's lending institution, or to both.

A title examination allows us to review the legal history of the property through an examination of the public records. Such a history will disclose the prior property owners, deeds, mortgages and other encumbrances affecting the property. In addition, the search may reveal court proceedings, such as probate, divorce or foreclosure proceedings which may affect title to the property and other lawsuits or claims which may have resulted in judgments and liens on the property. The goal of the examination is to discover any title defects resulting from the record history and then to correct the defects so a clear title policy may be issued.

The lender will require proof that the title to the property is clear and typically requires title insurance. This comes in the form of a mortgagee title policy. Such a policy only protects the lender's interest in the property and does not provide any protection for the owner. The purchaser may also obtain coverage in the form of an owner's title policy and is well advised to do so in most cases.

Title insurance protects the owner or lender against any loss that may be sustained because of a title defect, or any legal interest another party may claim in the insured's property. Examples of title defects include unpaid taxes for prior years, lost or forged deeds, claims of undisclosed heirs or title taken by improper probate proceedings, a married signer who signs as unmarried, clerical errors made at the courthouse in recording the documents, an incorrect legal description, and documents signed by minors or the mentally incompetent.

Title insurance will secure an owner's or lender's interest in property and will protect them against hidden title defects. If the owner or lender must defend title, the insurer pays the cost of the Defense in most cases.

At the Penson Law Firm, P.A., we have experienced attorneys to assist with closings and related real estate matters, and we can assist you with any of your real estate needs.