the closing process

The professionals at Stewart Title of Tennessee work closely with all parties involved in a closing transaction to ensure that everyone has an efficient and pleasant experience.
When we receive a title request, a file is immediately opened. Acknowledgement letters are mailed or e-mailed to the buyer, the buyer’s agent, the lender, the seller and the seller's agent. These letters let all parties know that the order has been received, who the contact at Stewart Title of Tennessee is, and what documentation the buyer and seller must obtain for closing.
The title search department then conducts a search of the county's lien and land records to determine who owns the property, who has liens on it and if there are restrictions on how the property can be used by the owner. From this report, we determine what must be done to clear the title so the purchaser can obtain a clear and marketable title to the property.
If required by the lender, we also order a mortgage loan survey from a reputable licensed surveyor. When we receive the drawing, we review it to determine if all improvements, including buildings and fences, are within the boundary lines and ensure there are no encroachments of set-back lines or easements.
A payoff of the seller's existing mortgage is ordered from the current lender to be collected at closing along with payment of property taxes and any other liens that may appear on the title search. This clears the title for the next owner.
We then prepare a commitment for title insurance from the information shown on the title search and fax or e-mail the commitment to the lender for their review. This provides the lender with pertinent information such as the current title holder, a correct legal description of the property, any and all easements and restrictions, and a summary of what is required to transfer title. These requirements typically include the execution of a Warranty Deed and Deed of Trust, the payoff and release of any liens or judgments, and the payment of property taxes.
Upon approval of the loan, the lender notifies the processor assigned to the file and we arrange a time and location to close with the buyer and their agent. The lender overnights or e-mails the loan closing paperwork to us and we prepare the remaining documents needed to complete the package.
On the closing day, our designated closing agent meets with the buyers and their real estate agent first. The closing agent provides explanations of all the documents to be signed, and makes sure each term of the contract has been met. After signatures have been obtained and all of the buyer’s requirements have been met, the funds for the final amount of closing costs and/or down payment are collected. Our closing agent then meets with the sellers and their real estate agent to review their paperwork. After their signatures are obtained and their requirements met, their net proceeds and real estate commissions are disbursed and keys exchanged.
After the closing, we disburse the remaining funds to the designated parties for charges collected on the Settlement Statement, send the original loan closing package back to the lender, and record the appropriate documents such as the Warranty Deed, Deed of Trust, Assignment and Release. After the documents are recorded, we issue the title insurance policies. The original Warranty Deed and Owners Title Policy are mailed to the new owner and the original Deed of Trust and the Mortgage Title Policy are sent to the lender. This completes the closing process.