Real Estate Closing Process and Title Basics
How title work fits the signing
The closing process moves from contract to title search to title commitment to closing to recording. A title search examines the chain of title for ownership and encumbrances. The title commitment is the insurer's promise to issue a policy: Schedule A identifies the insured, the estate, and the proposed policy amount; Schedule B lists requirements to clear and exceptions that will remain. At closing, the lender's policy is issued (usually required by the lender and paid from the borrower's side) and the owner's policy is optional in most states and typically paid by the seller by custom.
Deeds and vesting
A general warranty deed carries the broadest promises from the grantor; a special warranty deed covers only the grantor's own period of ownership; a quitclaim deed conveys whatever interest the grantor has with no warranty at all. Vesting language controls how owners hold title, and the deed must name grantees exactly. Documents are recorded in the county records to give public notice and priority.
Money and prorations
Settlement statements allocate debits and credits: taxes, rents, HOA dues, and utilities are prorated as of the closing date. Escrow holds funds and documents until conditions are met.
Traps
Questions swap the commitment for the policy, assume an owner's policy is mandatory, treat a quitclaim as a warranty deed, or confuse who customarily pays which cost. Read for who is required versus who customarily pays.
Rule of thumb: commitment = promise to insure, with exceptions; policy = the insurance itself, effective at closing.