In this slower real estate market, no real estate agent wants a botched deal, a late closing or a surprise at the closing table.

Although it's the title agent’s responsibility to compile all necessary documentation for the closing, collaborating closely with the real estate agent and gathering key information early in the process helps ensure the title company is fully prepared to complete the transaction smoothly.

Here are a few details that sometimes get overlooked in the process.

Unusual Circumstances

It’s true that most transactions are pretty standard, but there are plenty that involve unusual circumstances that require special documentation and verification.

Title agents must be told well in advance, for instance, if a power of attorney (POA) is being used in the closing process. The legitimacy of a POA must be established before a closing can occur, so it is not something the buyer or seller can show up with on closing day.

Divorce decrees, probate documents and wills also must be presented ahead of time for verification.

If the transaction involves a 1031 Exchange company or the seller is a foreign owner, there are additional steps to navigate and the sooner the title company is made aware of the circumstances, the sooner they can get started on ensuring all requirements are met.

Client Preferences

And then there are the basics. Here are three things to focus on at the outset:

Communications

All parties to the transaction should agree on the best way to communicate as the process winds its way from contract to close. Establishing phone, text, email and automated communication protocols from the beginning will not only put all parties on notice about how pertinent information will be transmitted to them but will also provide an opportunity to educate everyone on safety measures to prevent cybercriminals from entering the transaction.

Taking Title to a Property

How a client wishes to take title to the property is an important piece of information that a title company must have.

Generally speaking, a single owner would take title as sole ownership, but for multiple owners there are several options, including tenancy in common, joint tenancy with rights of survivorship, tenancy by the entirety or community property. Title can also be taken as trust ownership, which provides some tax advantages.

Homebuyers should be encouraged to consult an attorney if they are unsure of how they want to take title to the property.

Closing Preferences

From the outset, it is helpful for the title agent to know how the client wishes to conduct the closing, for instance in person – and at what location – or through a remote online notarization (RON) platform. Establishing this early on helps the title company make the necessary arrangements.

At FAN, we maintain the highest standards in providing title, escrow and closing services throughout Florida, and in addition, we are dedicated to protecting the integrity of the real estate transactions we manage. Contact us today to learn how we can help you with your next transaction.