Answers to Your Clients’ Most Common Questions about the Title and Closing Process
Jul 22, 2025 | Realtor Resources | Share:
Real estate agents are experts at helping clients buy and sell homes, but the title and closing process often generates questions that go beyond typical real estate knowledge. While you may understand the general process, explaining the technical details of title searches, wire transfer protocols, or document requirements can be challenging when clients want specific answers.
These questions typically arise because the title and closing process involves legal, financial, and procedural elements that clients don't encounter in their daily lives. A first-time homebuyer might not understand why they need title insurance for new construction, while experienced investors may question why certain documents require advance approval. Even seemingly simple questions like "When will I get my money?" involve complex security measures and regulatory requirements that aren't immediately obvious.
This guide provides clear, detailed answers to the most common questions about title and closing procedures. Whether you're helping a nervous first-time buyer understand what happens after their contract is accepted or explaining to a seller why their mortgage statement balance differs from their payoff amount, these explanations will help you provide confident, accurate information to your clients throughout the transaction process.
From Contract to Closing
How long does it take to close on a home?
Most financed transactions close within 30 days of contract acceptance, while cash purchases can close in as little as one week. However, cash transactions still require time for title searches, property surveys, and other essential steps that protect your investment.
Several factors can extend this timeline, including lender delays, title issues that need resolution, or required property repairs. Complex situations like estate sales or divorce proceedings may need additional time for document preparation and legal review.
Rushing the closing process isn't recommended because it increases the risk of errors and may not allow sufficient time to resolve issues that could affect your ownership rights.
What happens after my contract is accepted?
After your contract is accepted, your title company receives the order and begins the title search process. This involves examining public records to trace the property's ownership history and identify any liens, encumbrances, or other issues that could affect the sale.
Communication channels are established between all parties through secure platforms like Qualia Connect, which provides real-time updates on your transaction's progress. You'll receive login credentials and instructions for accessing important documents and status updates.
During the first few days, you can expect contact from your closing coordinator, who will gather necessary information, explain the process, and answer initial questions. Sellers should expect requests for payoff information, while buyers will receive preliminary closing cost estimates and document requests.
Why do I need to provide so much personal information during this process?
The personal information you provide serves multiple purposes in your real estate transaction. During the title search, your name and identifying information help verify that you're the correct party on the property's chain of title and that there are no liens or judgments against someone with a similar name. This prevents mix-ups that could affect your transaction.
Real estate transactions involve significant financial transfers, making them attractive targets for fraud. Federal and state laws require title companies to verify the identities of all parties involved to prevent money laundering and other illegal activities while protecting legitimate buyers and sellers.
Your information is protected through secure, encrypted systems and strict privacy protocols. Title companies are bound by professional standards and legal requirements to safeguard your personal data throughout the transaction and beyond.
Why can’t I just use my mortgage statement to pay off my loan?
Your monthly mortgage statement shows your principal balance, but the actual payoff amount includes additional costs that accrue daily. Interest continues to accumulate each day until the loan is paid off, and your statement balance doesn't reflect this daily accrual.
Payoff amounts also include fees that don't appear on regular statements, such as processing fees, overnight delivery charges, or prepayment penalties. Some loans have specific payoff calculation methods that differ from the standard principal and interest shown on monthly statements.
Lenders provide official payoff letters that are good for specific time periods, typically 30 days. These documents give the exact amount needed to satisfy the loan on a particular date. Your title company coordinates with your lender to obtain current payoff information and ensure the correct amount is paid at closing.
The Title Search and Examination Process
What exactly are you looking for during a title search?
A title search examines public records to trace the complete ownership history of your property, typically going back 30 years. This process verifies that each transfer of ownership was legal and properly documented, creating an unbroken chain of title.
The search identifies any liens, judgments, or encumbrances attached to the property, such as unpaid taxes, HOA fees, contractor liens, or court judgments. These must be addressed before ownership can transfer cleanly to you.
Title examiners also look for easements, restrictions, or covenants that affect how the property can be used. They verify legal descriptions, check for survey discrepancies, and ensure that previous mortgages were properly released. This thorough examination helps ensure you receive a clear, marketable title to your new property.
Do I need title insurance if I’m purchasing a brand new home?
Yes, even new construction carries title risks because title insurance covers the land, not just the building. The land may have changed hands multiple times and could have liens, easements, or other encumbrances from previous owners that affect your property rights.
Mechanics liens pose a particular risk with new construction. Contractors and subcontractors can file liens against your property for unpaid work, even after closing. These liens can be filed up to six months after construction completion, potentially affecting your ownership even if you weren't involved in the original dispute.
Additionally, new subdivisions may have survey errors, improperly recorded plats, or unresolved issues from the land development process. An enhanced title insurance policy provides the best protection for new construction, covering post-closing issues like mechanics liens that standard policies don't address.
Preparing for Closing Day
What documents do I need to bring to closing?
All parties must bring current, unexpired government-issued photo identification such as a driver's license or passport. If you're using a power of attorney, bring the original approved document to closing.
Buyers should verify their funding method and bring any required financial documents. Your closing coordinator will provide specific instructions about wire transfers or cashier's checks. Property-related paperwork, like surveys or HOA documents, are typically handled by your title company.
If you forget required identification, closing cannot proceed until proper ID is provided. Other missing documents may cause delays but can often be resolved quickly with electronic copies or overnight delivery.
Can someone else sign for me at closing?
Yes, but only with an approved power of attorney document. The POA must specifically grant authority for real estate transactions and be reviewed by both your title company and lender well before closing day.
POAs aren't acceptable if the principal is deceased, and some situations require the principal to be mentally competent when the document was signed. Both spouses must typically be present for married couples unless divorce is finalized.
The approval process takes several days, so submit POA documents as soon as you know they're needed. Alternative options include mail-away closings for out-of-town parties or travel closings for those unable to visit the office.
How do I know if my wire transfer instructions are legitimate?
Legitimate wire instructions come through secure, verified channels, never through regular email or text messages. You'll receive both an email and text with a secure link to access your wiring information after identity verification.
Red flags include last-minute changes to wiring instructions, requests sent through unsecured email, or pressure to wire funds quickly. Always verify instructions by calling your title company directly using a phone number you obtained independently.
South Oak uses CertifID to provide encrypted wire instructions and account verification. This system includes insurance protection and eliminates the risk of fraudulent instructions sent through compromised email accounts.
Why can't I bring a personal check for closing?
Real estate transactions require guaranteed funds to ensure the money is available immediately. Personal checks can bounce or be placed on hold by banks, potentially delaying the transaction or causing it to fail after documents are signed.
Cashier's checks and wire transfers provide immediate, verified funds that can't be reversed or canceled. Your closing coordinator will provide specific instructions about acceptable payment forms and amounts based on your transaction.
Closing Day Questions
What if someone doesn’t show up to closing?
For married couples, both spouses must typically be present unless there's a final divorce decree or approved power of attorney. All buyers and sellers listed on the contract are required attendees, along with their real estate agents.
When someone can't attend, options include using a pre-approved power of attorney, scheduling a mail-away closing for out-of-town parties, or arranging a travel closing if they're local but unable to come to the office.
Missing parties can delay closing until alternative arrangements are made. Last-minute absences are particularly problematic since power of attorney documents require advance approval by both the title company and lender.
Why does closing take so long if we’re just signing papers?
Closings typically take 30 minutes to an hour because each document requires careful explanation and review. Your closer must walk through loan terms, explain title exceptions, and ensure you understand your ongoing obligations rather than simply collecting signatures.
The process is deliberately thorough to prevent mistakes that could affect your ownership or create legal problems later. Questions and clarifications take additional time, but this discussion protects your interests and ensures informed decision-making.
When will I get my money after closing?
Sellers typically receive proceeds within two business days of closing. This timeline allows for fund verification, security protocols, and proper processing of all disbursements.
Delays can occur if there are issues with wire instructions, problems with payoff amounts, or last-minute changes to the settlement statement. Your escrow department monitors all disbursements and follows up on any checks that haven't cleared within expected timeframes.
What happens if we find a problem during the final walkthrough?
Common issues include property damage, incomplete repairs, or items that should have been removed still present. Minor problems might be resolved with credits at closing or agreements for post-closing repairs.
Options include delaying closing until problems are fixed, holding funds in escrow for repairs, or negotiating credits to address the issues. The severity of the problem determines which approach works best.
Major problems like significant damage or incomplete required repairs may delay closing until resolution. However, it's often better to delay and properly address issues rather than close with unresolved problems that could lead to disputes later.
After Closing
When will my deed be recorded?
Your deed is typically recorded at the county courthouse within two to three business days after closing. The title company prepares all documents in the correct order and ensures proper notarization before submitting them for recording.
Recording establishes your legal ownership in public records and protects your property rights. Until recording is complete, your ownership isn't officially documented, which could create problems if issues arise with previous owners or creditors.
You can verify recording completion by checking your county's online records system or contacting your title company.
What should I do with my title insurance policy?
Store your title insurance policy in a safe place with other important documents like your deed and homeowner's insurance. Keep both physical and digital copies since you may need to reference the policy years after closing.
You might need your policy if title issues arise, when refinancing your home, or if someone challenges your ownership rights. The policy also contains important information about covered risks and exceptions to coverage.
Your title insurance coverage lasts for as long as you or your heirs own the property. Unlike other insurance types, you pay only once at closing, and the protection continues indefinitely without additional premiums or renewal requirements.
What do I do if I discover a title issue after closing?
Start by contacting the title company that handled your closing. Many issues are simple misunderstandings or clerical errors that can be resolved quickly without involving the insurance underwriter.
If the title company can't resolve the issue, contact the underwriter listed on your title insurance policy jacket. You'll need your policy, related documents like your deed or mortgage, and any correspondence about the problem.
Title insurance covers hidden defects in your title that existed before closing but weren't discovered during the title search. It doesn't cover problems you created after closing or issues that were disclosed as exceptions in your policy. Report potential claims promptly, as some coverage may have time limitations for filing claims.
Having questions about the title and closing process is completely normal, even for agents who have been in the business for years. The industry continues to evolve with new security measures, updated regulations, and changing procedures that affect how transactions are handled. What matters most is ensuring your clients receive accurate information and feel confident throughout their real estate transaction.
If you or your clients have questions at any time during your real estate transaction, contact us at South Oak Title and Closing. Our team is always here to provide clear explanations, walk through complex procedures, and ensure everyone understands each step of the process. We're committed to making every closing a positive experience and are happy to answer questions whether you're just getting started or heading to the closing table.
From Contract to Closing
How long does it take to close on a home?
Most financed transactions close within 30 days of contract acceptance, while cash purchases can close in as little as one week. However, cash transactions still require time for title searches, property surveys, and other essential steps that protect your investment.
Several factors can extend this timeline, including lender delays, title issues that need resolution, or required property repairs. Complex situations like estate sales or divorce proceedings may need additional time for document preparation and legal review.
Rushing the closing process isn't recommended because it increases the risk of errors and may not allow sufficient time to resolve issues that could affect your ownership rights.
What happens after my contract is accepted?
After your contract is accepted, your title company receives the order and begins the title search process. This involves examining public records to trace the property's ownership history and identify any liens, encumbrances, or other issues that could affect the sale.
Communication channels are established between all parties through secure platforms like Qualia Connect, which provides real-time updates on your transaction's progress. You'll receive login credentials and instructions for accessing important documents and status updates.
During the first few days, you can expect contact from your closing coordinator, who will gather necessary information, explain the process, and answer initial questions. Sellers should expect requests for payoff information, while buyers will receive preliminary closing cost estimates and document requests.
Why do I need to provide so much personal information during this process?
The personal information you provide serves multiple purposes in your real estate transaction. During the title search, your name and identifying information help verify that you're the correct party on the property's chain of title and that there are no liens or judgments against someone with a similar name. This prevents mix-ups that could affect your transaction.
Real estate transactions involve significant financial transfers, making them attractive targets for fraud. Federal and state laws require title companies to verify the identities of all parties involved to prevent money laundering and other illegal activities while protecting legitimate buyers and sellers.
Your information is protected through secure, encrypted systems and strict privacy protocols. Title companies are bound by professional standards and legal requirements to safeguard your personal data throughout the transaction and beyond.
Why can’t I just use my mortgage statement to pay off my loan?
Your monthly mortgage statement shows your principal balance, but the actual payoff amount includes additional costs that accrue daily. Interest continues to accumulate each day until the loan is paid off, and your statement balance doesn't reflect this daily accrual.
Payoff amounts also include fees that don't appear on regular statements, such as processing fees, overnight delivery charges, or prepayment penalties. Some loans have specific payoff calculation methods that differ from the standard principal and interest shown on monthly statements.
Lenders provide official payoff letters that are good for specific time periods, typically 30 days. These documents give the exact amount needed to satisfy the loan on a particular date. Your title company coordinates with your lender to obtain current payoff information and ensure the correct amount is paid at closing.
The Title Search and Examination Process
What exactly are you looking for during a title search?
A title search examines public records to trace the complete ownership history of your property, typically going back 30 years. This process verifies that each transfer of ownership was legal and properly documented, creating an unbroken chain of title.
The search identifies any liens, judgments, or encumbrances attached to the property, such as unpaid taxes, HOA fees, contractor liens, or court judgments. These must be addressed before ownership can transfer cleanly to you.
Title examiners also look for easements, restrictions, or covenants that affect how the property can be used. They verify legal descriptions, check for survey discrepancies, and ensure that previous mortgages were properly released. This thorough examination helps ensure you receive a clear, marketable title to your new property.
Do I need title insurance if I’m purchasing a brand new home?
Yes, even new construction carries title risks because title insurance covers the land, not just the building. The land may have changed hands multiple times and could have liens, easements, or other encumbrances from previous owners that affect your property rights.
Mechanics liens pose a particular risk with new construction. Contractors and subcontractors can file liens against your property for unpaid work, even after closing. These liens can be filed up to six months after construction completion, potentially affecting your ownership even if you weren't involved in the original dispute.
Additionally, new subdivisions may have survey errors, improperly recorded plats, or unresolved issues from the land development process. An enhanced title insurance policy provides the best protection for new construction, covering post-closing issues like mechanics liens that standard policies don't address.
Preparing for Closing Day
What documents do I need to bring to closing?
All parties must bring current, unexpired government-issued photo identification such as a driver's license or passport. If you're using a power of attorney, bring the original approved document to closing.
Buyers should verify their funding method and bring any required financial documents. Your closing coordinator will provide specific instructions about wire transfers or cashier's checks. Property-related paperwork, like surveys or HOA documents, are typically handled by your title company.
If you forget required identification, closing cannot proceed until proper ID is provided. Other missing documents may cause delays but can often be resolved quickly with electronic copies or overnight delivery.
Can someone else sign for me at closing?
Yes, but only with an approved power of attorney document. The POA must specifically grant authority for real estate transactions and be reviewed by both your title company and lender well before closing day.
POAs aren't acceptable if the principal is deceased, and some situations require the principal to be mentally competent when the document was signed. Both spouses must typically be present for married couples unless divorce is finalized.
The approval process takes several days, so submit POA documents as soon as you know they're needed. Alternative options include mail-away closings for out-of-town parties or travel closings for those unable to visit the office.
How do I know if my wire transfer instructions are legitimate?
Legitimate wire instructions come through secure, verified channels, never through regular email or text messages. You'll receive both an email and text with a secure link to access your wiring information after identity verification.
Red flags include last-minute changes to wiring instructions, requests sent through unsecured email, or pressure to wire funds quickly. Always verify instructions by calling your title company directly using a phone number you obtained independently.
South Oak uses CertifID to provide encrypted wire instructions and account verification. This system includes insurance protection and eliminates the risk of fraudulent instructions sent through compromised email accounts.
Why can't I bring a personal check for closing?
Real estate transactions require guaranteed funds to ensure the money is available immediately. Personal checks can bounce or be placed on hold by banks, potentially delaying the transaction or causing it to fail after documents are signed.
Cashier's checks and wire transfers provide immediate, verified funds that can't be reversed or canceled. Your closing coordinator will provide specific instructions about acceptable payment forms and amounts based on your transaction.
Closing Day Questions
What if someone doesn’t show up to closing?
For married couples, both spouses must typically be present unless there's a final divorce decree or approved power of attorney. All buyers and sellers listed on the contract are required attendees, along with their real estate agents.
When someone can't attend, options include using a pre-approved power of attorney, scheduling a mail-away closing for out-of-town parties, or arranging a travel closing if they're local but unable to come to the office.
Missing parties can delay closing until alternative arrangements are made. Last-minute absences are particularly problematic since power of attorney documents require advance approval by both the title company and lender.
Why does closing take so long if we’re just signing papers?
Closings typically take 30 minutes to an hour because each document requires careful explanation and review. Your closer must walk through loan terms, explain title exceptions, and ensure you understand your ongoing obligations rather than simply collecting signatures.
The process is deliberately thorough to prevent mistakes that could affect your ownership or create legal problems later. Questions and clarifications take additional time, but this discussion protects your interests and ensures informed decision-making.
When will I get my money after closing?
Sellers typically receive proceeds within two business days of closing. This timeline allows for fund verification, security protocols, and proper processing of all disbursements.
Delays can occur if there are issues with wire instructions, problems with payoff amounts, or last-minute changes to the settlement statement. Your escrow department monitors all disbursements and follows up on any checks that haven't cleared within expected timeframes.
What happens if we find a problem during the final walkthrough?
Common issues include property damage, incomplete repairs, or items that should have been removed still present. Minor problems might be resolved with credits at closing or agreements for post-closing repairs.
Options include delaying closing until problems are fixed, holding funds in escrow for repairs, or negotiating credits to address the issues. The severity of the problem determines which approach works best.
Major problems like significant damage or incomplete required repairs may delay closing until resolution. However, it's often better to delay and properly address issues rather than close with unresolved problems that could lead to disputes later.
After Closing
When will my deed be recorded?
Your deed is typically recorded at the county courthouse within two to three business days after closing. The title company prepares all documents in the correct order and ensures proper notarization before submitting them for recording.
Recording establishes your legal ownership in public records and protects your property rights. Until recording is complete, your ownership isn't officially documented, which could create problems if issues arise with previous owners or creditors.
You can verify recording completion by checking your county's online records system or contacting your title company.
What should I do with my title insurance policy?
Store your title insurance policy in a safe place with other important documents like your deed and homeowner's insurance. Keep both physical and digital copies since you may need to reference the policy years after closing.
You might need your policy if title issues arise, when refinancing your home, or if someone challenges your ownership rights. The policy also contains important information about covered risks and exceptions to coverage.
Your title insurance coverage lasts for as long as you or your heirs own the property. Unlike other insurance types, you pay only once at closing, and the protection continues indefinitely without additional premiums or renewal requirements.
What do I do if I discover a title issue after closing?
Start by contacting the title company that handled your closing. Many issues are simple misunderstandings or clerical errors that can be resolved quickly without involving the insurance underwriter.
If the title company can't resolve the issue, contact the underwriter listed on your title insurance policy jacket. You'll need your policy, related documents like your deed or mortgage, and any correspondence about the problem.
Title insurance covers hidden defects in your title that existed before closing but weren't discovered during the title search. It doesn't cover problems you created after closing or issues that were disclosed as exceptions in your policy. Report potential claims promptly, as some coverage may have time limitations for filing claims.
Having questions about the title and closing process is completely normal, even for agents who have been in the business for years. The industry continues to evolve with new security measures, updated regulations, and changing procedures that affect how transactions are handled. What matters most is ensuring your clients receive accurate information and feel confident throughout their real estate transaction.
If you or your clients have questions at any time during your real estate transaction, contact us at South Oak Title and Closing. Our team is always here to provide clear explanations, walk through complex procedures, and ensure everyone understands each step of the process. We're committed to making every closing a positive experience and are happy to answer questions whether you're just getting started or heading to the closing table.