Closing/Settlement: This is the process in which all parties sign applicable documents to finalize the transaction and where funds are paid out. Prior to disbursing any monies, all requirements by Federal Regulations, HUD, RESPA, Tennessee State Law, Lending Institutions, Title Insurance Underwriters, etc. must be completely satisfied.

Declarations Page: This is written proof of coverage provided by your homeowner’s insurance agent. Concord Title is required to forward this document to your lender so the pre-closing process can be complete. Without this step, we are unable to receive instructions for closing or a closing package.

Defect: This is any possible or patent claim or right outstanding in a chain of title that is adverse to the claim of ownership. Any material irregularity in the execution or effect of an instrument in the chain of title.

Document Preparation: This is a charge that covers the preparation of all documents used in the process of closing. We receive, organize and complete documents for all parties involved. Any pertinent documents prepared by another party are subject to review and approval by our insurance underwriters prior to closing.

HUD Settlement Statement: This document is one of the most important documents you will execute regarding your transaction. All charges involving all parties must be explicitly outlined on the HUD Settlement Statement. Failure to follow these guidelines could be fraudulent. The lender bases the approval of a loan on income, debt, assets, credit scores, etc. Proceeds from sale transaction may be subject to IRS taxation. Most real estate agents are required to submit a copy of this statemen to their accounting offices with respect to their compensation.

Identification: The title company is required to obtain copies of at least one valid photo I.D. to ensure the identity of each individual executing documents.

Mortgagee Clause: This is the lender’s address that is provided to the hazard insurance company for their policy purposes.

Overnight Courier: This is an expense the title company’s office incurs when they are required to ship overnight documents. Per title underwriting and lender underwriter guidelines, we are required to ship closing packages, payoff disbursements, legal documents, closing proceeds, etc. via overnight delivery for tracking and delivery confirmation purposes.

Owner’s Title Insurance: The premium of the owner’s title insurance is calculated upon the sales price (or loan amount if higher than sales price). Title searches are valid for a short period of time; therefore you have 30 days after closing to purchase owner’s title insurances at the rate provided on the Notice and Waiver. After 30 days, a new title search must be completed, and the full premium would be due.

Power of Attorney: This document allows a person to appoint someone to execute documents on his or her behalf. A Power of Attorney must be approved by both the title company’s underwriter and the lender’s underwriter. Typically, only Specific(or Limited) Power of Attorney will be allowed and can only be used for the specific purpose of the transaction. We highly suggest that you do not use a Power of Attorney unless it is absolutey necessary. For sellers that are using a Power of Attorney, we will provide as many closing documents as possible to be executed along with the POA.

Quit Claim Deed: This is the legal document that the current owner signs and is generally used to add someone to title (a newly married couple), remove a person from title (per Final Decree of Divorce) or transfer property between family members. Tax is not paid on this type of transaction at the Registers Office.

Subordination Agreement: This document is executed by a current lienholder who agrees to maintain or change his or her position, or place in line, so to speak, in which their loan is secured. Liens recorded first take priority over liens recorded at a later date. In the event of a foreclosure, the lien holder in “first” position will have the opportunity to receive compensation first. Second position has the next opportunity to receive compensation from any equity remaining, and so on. For each loan that is paid off, the other lien holders move up in position. A Subordination Agreement means the lienholder has agreed to give another lienholder his or her position in the event of a foreclosure.

Warranty Deed: This is the legal document the current owner signs to convey title. A Warranty Deed will place the title to the property into the name of the new owners and is subject to tax on the sales price at the Register’s Office.