About the Closing Process
Offer is accepted. What's Next?
This is where we come in. Here's what to expect below. If you have any questions along the way, please reach out to us at any time.
Step One
The Contract & Initial Payments
Buyer and Seller Agreement
Buyer and Seller, often with the help of a real estate agent, agree on the terms of the contract. The contract is then initialed and signed by both parties.
Your Title Company
The contract is delivered to the Title Company, often accompanied by the earnest money check.
While the choice of Title Company is ultimately up to the purchaser, it is common for the seller or their agent to recommend a company they trust.
Initial Payments
Earnest Money
Earnest money is a security deposit from the buyer that demonstrates to the seller that they are a serious purchaser. The amount can vary.
Option Fee
The termination option fee is typically part of the contract and is paid by the purchaser to the seller.
This fee gives the buyer the right to terminate the contract within a specific timeframe (common in Texas real estate). The option check is delivered to the seller or the seller’s agent and can only be receipted by them.
Step Two
The Title Process Begins
Your escrow agent begins processing the order. Key events in this step include:
Step Three
Title Search & Examination
This is the heart of title insurance.
The title order is sent to the abstract/examination department, where a detailed search of public records is conducted to:
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Verify legal ownership
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Identify debts, liens, or other encumbrances
Step Four
Clearing Title & Prepping for Close
Your escrow agent works to prepare the file for closing by:
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Rreviewing documents obtained from all parties (lender, HOA, surveyor, etc.)
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Coordinating closely with the buyer’s lender
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Providing the lender with the title commitment and all known closing fees
This ensures the lender can move forward with loan approval.
Step Five
Countdown to Close
Closing Disclosure (CD)
The Closing Disclosure outlines all fees for both buyer and seller based on the contract. Regulations require that the buyer receive the preliminary CD at least three days before closing.
Scheduling Closing
The Title Company coordinates signing times for both buyer and seller. These are usually scheduled separately due to the confidential nature of the transaction.
Closing Location
Closings typically take place at the Title Company office, though remote closings may be available for an additional fee.
Step Six
Welcome to Sewell Title!
This is the day you come into the office, enjoy the coffee bar, and sign your documents. Your escrow agent will:
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Walk you through each document
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Answer your questions
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Ensure you feel informed and comfortable
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Maintain a secure transaction
Congratulations!
You are either a proud new homeowner or have successfully sold your property! Here's what to expect to recieve at the closing table or after closing:
Copies of Closing Documents - You’ll receive copies of everything you signed either in person, by mail, or electronically. Digital copies are recommended for easy record-keeping.
Owner’s Title Policy - This is the buyer’s final product, protecting their ownership interest in the property. It reflects the work completed through title examination and closing.
Payment Coupons - While less common today, these can still be useful for understanding when payments are due, how much to pay and where to send payments.
Property Value & Taxes - You should receive a notice from the Tax Office as to property value or taxes due. If you think you missed the notice you can go to the Tax Assessors website and look up your property. Tax bills are out as of October 1st of each year and become due upon assessment, but not late or subject to penalty until after January 31st of the following year.