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An abstract in real estate terms is simply a summary of all transactions and other matters of importance related to a particular piece of property. It will contain a summary of the original title grant along with any encumbrances and conveyances which affect it. Finally, the abstract company representative will certify that the current abstract is complete and accurate.

Before selling any property, the seller must have in his/her possession a certified copy of the abstract. The abstract is different from a deed. The deed is the means by which property rights are transferred, but the abstract is a title to the property. The deed simply represents the rights of an owner to claim the real estate.

When planning to sell your home, business, or other real property, let Muleshoe Abstract provide you with the most up-to-date abstract. This will help ensure a smoother sale and prevent potential pitfalls which could prevent closing.

A title exam requires a careful search of public records which may affect a title to real estate. This includes a review of past wills and deeds, trusts, or any other former claims to the property.

The first thing a title exam does is ensure that the title is clear of liens or other issues which would need to be legally corrected before the sale can be complete.

If a person were to sell a property they believed they owned but was in fact never legally transferred to them, they could not sell the property. Without a title examination, the sale could close and later, the true owner could rightfully make a claim to the real estate. This would be the same as buying stolen property and the courts would almost certainly rule in favor of the rightful owner. Naturally, this would be very costly to the new (illegitimate) owner; the title exam helps prevent such a situation from happening.

In some cases, a title exam could return that the title is “defective.” This happens when a previous owner either did not have clear title as believed, the title contained an incorrect property description, or there exists some other previously unnoticed issue.

One of the key elements of a title search involves checking the chain of title, which is the history of the title as the property is sold from one person to the next to the next and so forth. When checking the chain of titles, the examiner will search for deed notations, judgments, death certificates, joint tenancies, foreclosures, or other title transfers which may affect the transfer of the property.

Many insurance companies will not even issue a policy until the title exam has cleared.

Escrow refers to monies held in trust by a 3^rd party to a transaction. In real estate, escrow accounts are established for the paying of property taxes, insurance, or any other requirements which must be met prior to the closing of the sale.

Muleshoe Abstract provides escrow service for buyers and sellers

Sellers often must have escrow accounts for property needs which arise prior to the sale. Buyers often need an account for down payments or “earnest money” which will be held during negotiations. By providing these funds in escrow, a seller is protected against “shoppers.” Only buyers who are serious and have the funds in place to make the purchase will put the money into escrow, so the account acts as a good faith promise. Should the deal not be negotiated with success, the buyer will receive the funds back; if the deal is to proceed, the funds will be used in accord with any agreements made.

One of the most common expenses used from an escrow account is the inspection, which may be paid by either the seller or the buyer, but most often by the buyer.

Escrow accounts do not usually accrue interest.

A title is legal evidence of ownership in a property. Because properties can change hands, property insurance is provided to protect new owners against problems related to previous ownership. Such problems could include but are not limited to

• ownership interest
• fraud/forgery
• improperly recorded documents
• liens
• encroachments
• easements

Both buyers and lenders would be wise to purchase title insurance when taking possession of a property. In fact, many lenders require title insurance.

Title insurance is issued after a title search is complete and a preliminary report is issued. The policy will list all closing documents along with any other document related to the current sale which may be important in protecting the purchaser.

If you are making a purchase of real estate, contact Muleshoe Abstract for a title insurance policy.

Closing a real estate deal is the cause of much anxiety for most people. It is the final element in making a property purchase and for many, it can be confusing. We take all the mystery our of closing and provide the services needed to ensure the smooth transfer or real estate.

Muleshoe Abstract agents help with real estate closings. Acting as a neutral party, we review all transactions for accuracy, perform notary services for buyer and seller signatures, and make sure the deed or mortgage documents are properly filed with the courthouse.

We can also oversee and handle the exchange of funds including any placed into escrow.

How Long Does Closing Take?

Closing generally takes only a couple of weeks provided all is in order. Depending on the type of transaction or property involved, it could take longer, but not usually. Muleshoe Abstract will provide a reasonable time-table and provide updates both buyers and sellers as needed.

Can We Move into the House or Property on the Day of Closing?

The terms of the contract will determine the earliest move-in date. We can let you know this at any time during the closing process.