FAQs

The term ‘escrow’ is used in many ways to describe specific details of a real estate transaction. Escrow is a service which contracts a neutral third-party to secure transactions, hold legal documents as well as money/funds on behalf of the buyer and seller. The escrow process was put in place to ensure the protection of the principals (buyer, seller and lender).

Escrow services minimize risk, protect and provide clients with convenience.

An escrow officer is a licensed, unbiased third-party who oversees the transfer of funds and related documents between the principals. It is imperative that all pre-requisites and conditions of the sale are completed before the property and money are exchanged. The escrow officer is entrusted to consistently carry out instructions reached and agreed upon by the buyer, seller and lender.

Escrow is also referred to as the closing process in its entirety.

Property title is a legal term stating whole or partial rights for a specific real estate property. Title refers to a process of proprietary rights being reassigned from one client to another.

When you hold the title to a property you have the ability to sell or transfer the share of property that you own. The ownership, duties and rights of individuals holding a title for a property is legally recorded in documentation that is filed with public records.

Before you purchase a property, Trident’s licensed escrow officers conduct a title search. A title search is a detailed investigation of the ownership history of a property. The purpose of this examination is to authenticate the seller’s right to transfer ownership. Our escrow officers use their expertise to ensure the property is clear of any claims, defects, liens, easements, encroachments or other burdens on the property.

Our expert’s commitment is to uncover any potential issues in the transfer of ownership that would affect the sale or impact the new owner.

Title insurance is a policy that insures your rights to the property. Unlike auto insurance that safeguards things from potentially happening in the future, title insurance protects owners and their investment from things that occurred in the past. In addition, holding title insurance equips the lender and buyer with security from financial loss due to title errors.

There are two types of title insurances in real estate transactions:

+An owner’s title policy protects the buyer as long as the owner and he or her heirs own the property.

+A loan policy protects the lender institution and typically lasts until your mortgage is paid off.

Title insurance gives you an added layer of security as well as peace of mind when purchasing property.

Usually title insurance is a mandatory purchase from lending institutions. Title insurance is a policy that protects against loss if any assortment of defects exist in the title of the property. Title problems can be minor or cost more than the value of property. Remember, any issues found, you will be liable for that claim. Title insurance reassures and can give owners peace of mind that they will be covered if any unforeseen problems arise with the ownership of property.

There are various things title insurance protects you from and some of the most common are:

* Fraud

* Flawed record-keeping

* Unpaid taxes

* Liens

* Fraudulent signatures and impersonation

* Lack of competency, capacity or legal authority of a party

* Misinterpretations of wills

* Outstanding lawsuits concerning the property

* Undisclosed restrictive covenants, such as easements

* Deed recorded incorrectly

There are two types of policies, a lender’s policy and an owner’s policy. Coverage for owners lasts as long as you or your heirs own or partially own the property. Lender’s coverage lasts until the loan is paid in full.

Instead of monthly premiums like other insurance coverage, title insurance is a one-time cost.

Title insurance is not legally required. However, majority of lenders in Utah will require it in order to issue the loan and protect its interest.

There are two types of title insurance policies. A lender’s policy that protects the lending institution and an owner’s policy that protects the owners.

No. title insurance is a one-time payment, unless you choose to add additional coverage. Your title insurance policy is valid for as long as you or your heirs own the property.

The major difference between a title commitment and a title policy is when it is issued. The commitment is issued before closing and a title policy happens after closing.

After the title search, Trident will complete a title commitment. This step in the process confirms the buyer obtains a clear title on the property and the seller fixed certain conditions and issues. A title commitment does not insure that there are no present issues or that none will emerge in the future. The commitment states that Trident is willing to issue a title insurance policy.

A title insurance policy covers title issues for the property itself.

A title commitment is Trident’s promise to issue a title insurance policy after the closing on a property. The commitment will have terms, conditions and exclusions consistent with the actual insurance policy.

After the title search, Trident will complete a title commitment. This step in the process confirms the buyer obtains a clear title on the property and the seller fixed certain conditions and issues. A title commitment does not insure that there are no present issues or that none will emerge in the future. The commitment states that Trident is willing to issue a title insurance policy.

A title insurance policy covers title issues for the property itself.

The closing process encompasses the investigation and/or actions taken by a title agent or title attorney before issuing a title policy. Below are the five steps that are followed by most agencies in a real estate transaction.

STEP 1

STARTING THE PROCESS

A sales contract is delivered to the escrow officer and then the closing process is initiated by starting a title order. Then the file is processed. Loan payoffs, tax information, homeowner/maintenance fees, survey (if necessary), inspections/reports, hazard and other insurances as well as legal papers are ordered. Then title commitments and preliminary reports are examined and sent out.

STEP 2

TITLE SEARCH AND EXAMINATION

A search of public records is conducted. The records that are searched include wills, liens, deeds, paving assessments, mortgages, divorces settlements and any additional documents that may affect title to the property. Next, a title examination occurs, which is an investigation of those flagged documents found during the title search.

STEP 3

DOCUMENT PREPARATION AND/OR REQUEST TO PRODUCE

The closing agent goes over the lender’s requirements, reviews directions from other parties to the transaction, analyzes loan and legal documents, assembles charges and preps closing statements and schedules the closing.

STEP 4

SETTLEMENT/CLOSING THE TRANSACTION

An escrow officer supervises and watches the closing of the transaction. The seller signs the deed and closing affidavit. The buyer’s old loan is paid and he or she signs the new mortgage. It is during this step the real estate professionals, seller, attorneys and other parties to the transaction are compensated.

STEP 5

POST-CLOSING

After signatures have all been finished, the escrow officer will distribute payment to any previous lender and all unpaid parties who contributed services in your closing. Then the documents affiliated with the transaction are then recorded in the county where the property is located. And finally the title insurance policies are prepared and delivered to the new lender as well as you. This step occurs without any effort or involvement from the buyer and seller.

After the title search, Trident will complete a title commitment. This step in the process confirms the buyer obtains a clear title on the property and the seller fixed certain conditions and issues. A title commitment does not insure that there are no present issues or that none will emerge in the future. The commitment states that Trident is willing to issue a title insurance policy.

A title insurance policy covers title issues for the property itself.