Lenders' Frequently Asked Questions
Who attends settlement?
At a purchase settlement, typically the sellers, purchasers, and their real estate professionals will attend the settlement, which will be conducted by one of our competent and experienced attorneys or settlement officers. At a refinance settlement usually only the borrowers and our attorney or settlement officer are present.
Who does Peak Settlements represent at settlement?
In a purchase transaction, the title company "represents" the contract. The title company does not negotiate the terms of the transaction; rather we facilitate the execution of the terms of the transaction. We do not act for, advise, or "represent" any one party. In a refinance closing, we are there to follow your lender's instructions and to explain the documents to you and verify that they are properly executed.
How long will the settlement take?
While the time of a settlement can vary greatly, typically a refinance will take between 30 minutes and an hour, and a purchase will take between 45 minutes and 1 hour and 15 minutes.
What is title insurance?
Title insurance provides coverage for certain losses due to defects in the title that occurred prior to your ownership. The seller can give you only those rights that have been previously received by him/her with good title. Title insurance protects against such prior fraud or forgery that might go undetected until after closing and possibly jeopardize your ownership and investment. Some of the most common problems covered by title insurance are:
- Erroneous interpretations of wills
- False representation by sellers
- Fraudulent or misrepresented deeds, releases, etc.
- Incompetency of previous sellers
- Recording mistakes
- Undisclosed or missing heirs
- Unfiled liens
There are two basic types of policies--Owner's Policy and Loan Policy. As the names imply, the Owner's Policy protects the interests of the real estate owner, while the Loan Policy protects the interest of the lender or mortgagor.