Your North Carolina Real Estate Closing Checklist

The back door of a modern home with a chimney.

Finally, after weeks and weeks of hard work, it’s time for the best part of the real estate transaction: closing day! Without proper planning, it’s easy for closing day to go awry in the world of real estate—especially when it comes to the home’s title. That’s why we’ve come up with this North Carolina real estate closing checklist.

It includes everything you should do as a real estate agent to ensure a stress-free and successful closing day. Have specific questions about working with a title insurance agency prior to closing day? Don’t hesitate to give us a call.

In the meantime, let’s get to it!

Step 1: Verify that the Sales Contract is Correct

This sounds simple enough, but when done incorrectly it can yield potentially catastrophic results! You’ll want to ensure that the sales contract is correct, and that includes:

  • Making sure the person selling the property is the “record title holder”
  • Double checking that all property is represented in the contract

Oftentimes, commercial properties may actually include more than one piece of land so be sure that both the seller and buyer are on the same page and everything is properly accounted for in the contract.

Step 2: Ensure the Contract Includes a “Due Diligency” Clause

This is a huge part of selling—especially when it comes to commercial properties. If there are any contingencies, make sure that all parties are aware and properly informed about them.

Time and time again, we see even the most carefully planned closings fall apart as a result of contingency deadlines not being met!

Step 3: Keep Track of the Buyer

If the buyer is borrowing from a lender, you’ll want to check in with them to make sure they’re following through on all of their requirements. Lenders typically have a set of requirements for borrowers, and when buyers don’t adhere to them it is impossible to get the transaction approved before closing.

Periodically throughout the real estate transaction, contact the buyer’s representative to check that everything is going smoothly! Otherwise, it will be harder for the lender to get the title insurance underwritten and approved.

Step 4: Stay Ahead of Any Title Issues

If any issues with the property’s title arise during the transaction process, deal with them immediately. Work with the seller, the title agency, and the buyer representative to take care of any issues quickly.

Time is of the essence in any real estate transaction, so don’t get bogged down by procrastinating on important title issues!

Step 5: Keep Your Client Informed

Even as an experienced real estate agent, you know that the closing process can be confusing. That’s why you should do everything in your power to educate your client on the closing process.

When your client  knows exactly what to do during the closing, the entire process will go that much smoother!

Step 6: Thoroughly Review Closing Documents with Your Client

And, additionally, make sure that all parties are on the same page about closing! Coordinate all logistics, including closing date and time, and confirm it with the buyer, seller, and their representatives.

Step 7: Work with a Professional Title Insurance Agency

As a real estate agent, you’ll want to work closely with a title insurance agency to make sure the policy is effective and ready on time.

If you have any questions about the role title insurance plays in your real estate transaction, please don’t hesitate to give Tryon Title a call!

 

Tips for a Smart Transaction: Is Title Insurance Transferable?

Two colleagues communicating across a desk.

One of the most time-consuming parts of owning a home is choosing to sell it. There are a number of steps to successfully sell one’s home, all of which require time, careful research and planning.

If you’re about to transfer your home’s title, you might find yourself wondering if your title insurance policy is also transferable. This depends entirely on the state you live in. As your North Carolina title insurance experts, we have the answer:

Title Insurance is Not Transferable in North Carolina

According to the North Carolina Department of Insurance’s Consumer Guide to Title Insurance, you cannot transfer your owner’s title insurance policy to the home’s new owner.

If the new owner of the property wants to be protected against any issues with the title, they will need to purchase their own title insurance policy.

However, as the property’s one-time owner, you may still keep your owner’s title insurance policy even after you’ve sold the property. This may protect you from any issues that come up in the future.

Can I Transfer My Title Insurance to Cover a New Property?

Once you purchase a new property, you will need to obtain a new owner’s title insurance policy to protect its title.

This is because you’ll have to complete a new title search for your new property. In addition, the new policy’s premium price will depend on the market value of the home.

Do I Need Title Insurance for Every Property I Purchase?

While having an owner’s title insurance policy is not legally required, it will protect you in the event of any issues with your title.

That’s why we recommend taking out a title insurance policy for every new property you purchase. Since your existing policy cannot be transferred, it is imperative to protect your new investments.

Interested in learning more about the title insurance policy process? Contact us today to to obtain your own owner’s coverage policy.

Tryon Title Makes All the Difference

At Tryon Title, our experienced staff of underwriters and title insurance providers are here to help. Allow our team to provide you with accurate and reliable results in no time. In fact, our underwriters can deliver a final policy within 24 hours.

If you’re searching for a title insurance policy in North Carolina, please reach out to us today for a consultation.

You Need to Ask these Important Questions about NC Title Insurance

A young couple receiving the keys to their new home.

When you buy a home in North Carolina, it’s important to protect yourself with a thorough insurance policy. That’s why we recommend all homebuyers, whether it’s your first home or your fifth, take out a comprehensive North Carolina title insurance policy.

While title insurance is not legally required, having a policy on your property will ensure peace of mind throughout your homeownership.

Simply put, title insurance protects you in the event of any issues with your title. If you’ve never purchased title insurance before, it’s time to do some research and ask your insurance provider these important questions.

Do I Really Need Title Insurance to Purchase Real Estate in NC?

When you buy a home, the property’s previous owner will transfer the property’s title to you. Title insurance protects your claim of ownership to that property, as well as the equity you build as you pay your mortgage over time.

While title insurance is not legally required, we highly recommend all North Carolina homebuyers take out a sufficient title insurance policy. This way, their equity is protected in the event that something comes up with their title.

Even if you’ve already paid for a title search and it comes up clean, you may still be at risk. Oftentimes, negligence and fraud do not appear on title searches! If something were to come up and you did not have a title insurance policy, you may still be at risk.

How Does Title Insurance Protect Me?

Let’s say you buy a home for $250,000. You pay your mortgage payment every month and then some, and this goes on for many years. Over 10 years, you pay off more than half of the loan, meaning you now have over $125,000 worth of equity. All of a sudden, a relative of the last owner appears and claims that the home is actually theirs. They helped the last owner purchase the property and their name was on the title at one point.

They can take you to court over ownership of the home—and if they win, you could lose your equity and rights to the property. If you have a title insurance policy, you’ll be reimbursed for your court fees and, should you lose, the equity you’ve built up in the home up to the amount of your policy.

Who Pays for Title Insurance?

In North Carolina, the buyer is responsible for purchasing owner’s title insurance.

However, you may also be responsible for purchasing lender’s coverage title insurance for the lender financing your home loan.

Luckily, title insurance in North Carolina is very affordable! You’ll pay a one-time premium when you buy the property. This premium is based on the market value of the home.

You’ll only have to pay again should you choose to refinance your home later on down the line.

How Long Does Title Insurance Last?

Once you purchase title insurance in North Carolina, that’s it. The title insurance will last the entire amount of time that you own the home.

Lender’s title insurance coverage, however, only lasts for the amount of time that you have a mortgage loan. Once you pay off your mortgage loan, the lender’s coverage ends. At that point, however, you’ll only need your owner’s coverage policy.

Tryon Title: Your Top North Carolina Title Insurance Provider

At Tryon Title, we provide our customers with fast customer service, laser-sharp accuracy, and 5-star customer service. Our title insurance professionals are here to help you find the coverage that’s right for you.

For more information on obtaining title insurance in North Carolina, please don’t hesitate to give us a call.