The Settlement Process
Once our office receives a copy of the ratified contract, we will start preparing for settlement. This includes conducting a title search. The title search is a vital step in the purchase process. A title search involves reviewing all public records in relation to a specific property. The title search looks back a period of 40 years. The purpose is to determine if the title is marketable to ensure the property is free and clear of liens or pending lawsuit. One of our attorneys’ will review the title search to ensure it is accurate. Then, the title insurance commitment is issued.
Settlement will be scheduled in accordance to the contact and held at our office located in Belcamp, Maryland. Pre-signing accommodations are available for sellers.
What to Expect?
A few documents you can expect to see at settlement are: the closing disclosure, promissory note, and deed of trust. Please note, settlement documents are not limited to the items listed.
The closing disclosure is a form the provides the final details of a mortgage loan. The closing disclosure is balanced between the mortgage company and the title company prior to settlement, and by law, they buyer must receive a copy of the closing disclosure three days prior to closing.
A mortgage promissory note is the agreement promising that the money borrowed from a lender will be repaid by the borrower. The mortgage note explains how the loan is to be repaid, including details about the monthly payment amount and length of time allowed for repayment.
The deed of trust or trust deed is a legal instrument that is used to create a security interest in real estate property wherein legal title in real property is transferred to a trustee. The trustee then holds the title as security for a loan between a borrower and lender.
The money required for settlement will be collected and held in an escrow account. Following settlement, funds will be distributed accordingly along with any property keys.
First-Time Homebuyers Tax Credit
First-Time Homebuyers, in the State of Maryland, are eligible for a transfer tax exemption. For title purposes, a first-time home buyer means an individual who has never owned residential real property in the State and who will occupy the property as his or her principal residence