Frequently Asked Questions
What is Title Insurance?
Title insurance is a product that makes sure you own your home. When you purchase property, title insurers make sure no person or entity has greater rights to your property than you. Title insurance protects against unknown or undisclosed claims from the past against your ownership. It is a way to provide you with peace of mind when you come buy your home.
What is Escrow?
Escrow, in basic terms, is the process in which an owner sells their property to a buyer with the aid of a disinterested third party. Serenity Title & Escrow’s escrow officers act as that third-party, coordinating the sale between the buyer, seller, any real estate agents, lenders, and other involved professionals. The escrow officer will collect earnest money, manage funds, complete documents for the government, and finally sign the property’s title over to the new owner. That’s just a small glimpse at the escrow process and what you’ll expect during the closing process. Serenity Title uses TrustFunds electronic earnest money process to ensure security for all parties.
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What are Abstracts?
Think of an abstract of title as a chronological map of a property's ownership. It tracks who owned the property in the past, how it changed hands, and any outstanding claims like liens or easements that could affect the current owner's rights. Abstracts are necessary for the transfer or financing of property in some of our service areas. We have a network of experienced abstractors who produce a quality product to facilitate your transaction. Contact us today to see if your location requires an abstract of title.
Why do I need Title Insurance?
Owning real estate is an investment. Title insurance provides the assurance that the property you are buying is yours and also protects you against loss should anyone make a claim against your ownership rights of the property. Learn more about Title Insurance here.
What is an Owner's Policy?
Owner's title insurance protects the buyer should a problem arise with the title to the property that was not discovered during the title search. The title insurance company promises to defend against claims made against the title of the property. It is purchased for a one-time fee at closing and lasts for as long as you or your heirs have an interest in the property.
What is a Loan Policy?
Lender's title insurance protects the lender's interest in the property should a problem with the title occur. The policy amount decreases as the borrower pays down the loan and is no longer effective once the loan is paid in full.
What protection does Title Insurance provide?
A title insurance policy provides peace of mind by insuring against any losses that may be suffered due to legal action (up to the face amount of the policy) and pays any and all legal costs incurred in defending your rights against the claim. This can add up to thousands of dollars you would otherwise have to pay on your own.
Is Title Insurance Expensive?
The cost of title insurance on any piece of property is very small when compared with the benefit and security it provides. The amount you pay for closing costs will vary; as a one-time fee of typically 0.5% of the home’s purchase price, title insurance offers significant value protecting against financial losses. When buying your home and obtaining a new loan, an estimate of your closing costs will be provided to you pursuant to the Real Estate Settlement application. This disclosure provides you with a good faith estimate of what your closing costs will be in the real estate process.
Can I pay for my closing costs in installments?
No, and it is easy to understand why. Many different parties will have fulfilled their responsibilities and be waiting payment upon closing. The title company will disperse monies to those parties, pursuant to the escrow instructions, when funds are available.
Will I be allowed to write a personal check to cover my closing costs?
Your closing funds should be in the form of a cashier’s check issued by a Illinois institution; made payable to the title company in the amount requested. If the funds to closing are over $50K, a wire transfer is required. A personal check may delay the closing or may be unacceptable. An out-of-state check could also cause a delay in your closing due to possible delays in clearing the check.​
What is a Closing?
Also called a "settlement", a closing is the process of completing a real estate transaction. This is the final step in purchasing your new home (or property). During a closing, the buyer will most likely sign a mortgage, a note, and any other documents required by law to complete the transaction. The seller will sign the deed and any other documents required by law to complete the transaction. After the closing, the settlement agent disburses money to the appropriate parties. Learn more here.
What documents are at Closing?
Deed – transfers the property title from the seller to the buyer. It includes both the seller's and buyer's information and the legal description of the property. This document is filed at the local Register of Deeds office to complete the transaction.
Mortgage – places a lien on the property as security for the loan. If you default on the note mentioned above, then the bank has the right to foreclose on your property. This document is filed at the local Register of Deeds office to complete the transaction.
Settlement Statement – provides a detailed listing of all the fees and costs associated with the transaction. It also shows that the parties agree to the terms of the funds being disbursed in the transaction.
What should I bring for a closing?
Two forms of identification. One must be government-issued and include a photo, such as your driver’s license or passport. The other must have your name printed on it, such as a Social Security card, credit/debit card, insurance card, wholesale membership card, library card, etc.
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Certified Funds (cashier’s check) made payable to the Serenity Title & Escrow. A wire fund directly to the closing company’s escrow account is also acceptable. Please contact your settlement agent for wiring instructions. Serenity Title & Escrow protects buyers and sellers with Closinglock. We will NEVER contact you directly with wire instructions. If you receive an email, phone call, link, attachment, letter, etc. with wire instructions please notify us immediately.
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All parties on the loan (and their spouses) will need to attend to sign the applicable loan documents.
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What is the Automated Clearing House (ACH)?
The ACH Network is at the center of commerce in the U.S., moving money from one bank account to another through Direct Payment via ACH transactions. Each year, the ACH Network moves more than $40 trillion and nearly 23 billion electronic financial transactions, and currently supports more than 90 percent of the total value of all electronic payments in the U.S. As such, the ACH Network is one of the largest, safest and most reliable payment systems.
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Do you have additional questions?
Contact Us! Serenity Title & Escrow personnel are available to review and explain your title policy and your closing statement. Should you still have further questions or need legal or tax advice, your title or escrow office can help by referring you to the proper source for your answer. Remember, the title or escrow officer is not a legal counsel and cannot give you legal advice. It is their responsibility to give impartial service to all customers.
