Step 7: Ask for Title Search and Insurance Title insurance protects real estate owners and lenders against loss or damages that might result from preexisting liens, encumbrances, or defects in the title. Each title insurance policy is subject to spe cifi c terms, conditions, and exclusions. Title insurance works a bit diff erently from other types. Automobile and homeowner’s insurance protect against potential future events and are paid for with monthly or annual premiums. A title insurance policy insures against past events for a one-time premium paid at the closing of the escrow. Title defects include another person claiming an ownership interest, improperly recorded documents, fraud, forgery, liens, encroachments, easements, and other items that are spe cifi ed in the insurance policy. Step 8: Be Present at a Walkthrough Many buyers don’t bother with this part of the closing process, or don’t assume it’s important. Don’t make this mistake. A fin al walkthrough is a last chance to see your future house before you buy it. Further, skipping the fin al walkthrough is a commonly reported reason for closure delay. It’s typically scheduled 24 hours before the closure. Th e property should be in the condition spe cifi ed in your sales contract. You may inspect for any changes made subsequent to the home inspection, or for pest inspections. Con fir m that everything is in order and decide if any additional repairs or replacements are necessary. Step 9: Set the Time and Date of the Closing Th e closing time and date are negotiable factors during the o ff er and acceptance phase of a home sale transaction. When making 164
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