Step Three: Verify the Property
With an earnest money deposit in place and the property officially off the market, the next step is to have a third party verify that both buyer and seller are meeting all their respective requirements. To ensure that the property is legally available, the agency handling the escrow, usually the title insurance company, organizes any necessary paperwork.
This involves verifying the state of the property (including surveys, deeds and inspections) and checking to ensure that no outside organizations have issued a lien against the property, claiming it as collateral against an outstanding debt on the seller's side. Once it's verified that the property is clear, the settlement agency issues title insurance, which officially declares the new buyer as the owner of the property and legally protects them against any mistakes that may have been missed.
With the title insurance and surveys in place, the only thing that's left to do is transfer the purchase price of the house and dole out closing cost fees to everyone involved in the transaction.
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