A real estate closing is like the icing on the cake of home ownership. Icing is great, but if you don’t have the cake to go with it, you don’t have much.
A good real estate closing is important. It is the legal conveyance of real property, and it’s the distribution of the money. Whether you’re a fast-food clerk or a bank manager, handling money properly is very important. I can’t stress this enough, especially at a real estate closing. It’s often a lot of money, and it’s often going in a lot of directions. The truth is, most closing companies make sure correct amounts go to correct accounts. The other truth is, most closing companies don’t offer the full value of the transaction, because they just don’t know better.
Some closing companies fail to offer the customer appropriate title insurance endorsements. Are they doing the customer a favor by cutting cost in the short-term? Or do they cripple the customer later with financial liability that could have been avoided at closing for only a handful of dollars?
If the customer wants to cut corners, let them decide, but let them understand the risks too.
In Florida, a closing company is allowed to do real estate closings because they issue title insurance, but most closing companies don’t understand what they’re issuing. They make the closing look pretty, and distribute the money properly, but they’re not there for support after the transaction. They’re not there for the full value of property ownership. They cut corners to reduce cost by not offering proper endorsements on the title insurance, and in doing so, they cut corners on value for the customer.
Home ownership is the vital part of a real estate closing; it’s going to last and be good, adding value for you and your family. The closing itself is just the icing on top. With title insurance and proper endorsements, you should have your closing and savor it too.
Hint: Use a title agency that issues title insurance and does closings, rather than a closing company that issues title insurance.
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