What Does it Mean When
My Realtor says,
“We are Waiting for Title” ?
As Real Estate professionals we deal with transactions, almost daily, while the average person will own only three to four homes in their lifetime. Most individuals are involved in three to four real estate transactions throughout their lives. Therefore, many terms and technical details of the transaction are not communicated or are just skimmed over with very little depth. One phrase I know I have used and not given much thought is, “We are waiting for title.”
Surprisingly, very few clients actually stop me to explain what this means. The typical response is, “Oh, okay. How long will it take to get back?” I will dissect this statement for my own professional understanding.
Here is what it means to
“Get Title Back.”
Once a home is put under contract, a Title Company is hired by the lender and real estate agent to complete the closing. The first and most important task in the closing process is to do a title search. A representative for the closing office will physically go to the courthouse and research the deed. They are verifying proper transfer of the deed from owner to owner. They are also looking to make sure there are no judgements against the property. Judgements can be in many forms, such as liens or past due taxes.
The attempt is to create a line of ownership back 60 years. If the title company can do this, title insurance is issued, protecting the buyer from any issues associated with the property. If the line of ownership is not clear or there are ownership conditions, which need to be resolved, the title company will also do such. So “waiting on title” means the Title Company is waiting to get notification of a clean title. Some title searches are extensive and some are easy. Be prepared to wait three to four days at least for this process.