Quick Answer
After title requirements are cleared, the transaction moves toward closing subject to lender approval, settlement, funding, signing, recording, remaining underwriting conditions, and title policy issuance. The commitment evolves into the final policy once all conditions are met.
Once the title company has confirmed that all requirements are satisfied, significant progress has been made. But the process is not over yet. Here is what typically happens next.
Step 1: Confirm Requirements Satisfied
The title company verifies that each requirement has been completed. This may include confirming receipt of recorded releases, verifying payoffs, reviewing entity documents, and checking that corrective documents have been recorded.
Step 2: Update Title
A final search update (bring-down) is performed to check for any new matters recorded since the effective date. If nothing new appears, the commitment is still valid. If new matters appear, they must be addressed.
Step 3: Coordinate Closing
The closing is scheduled with all parties. The title company prepares the settlement statement, deed, and other closing documents. Final figures are calculated.
Step 4: Signing
The parties sign the closing documents, including the deed, mortgage or deed of trust, settlement statement, and any required affidavits or disclosures.
Step 5: Funding
The lender funds the loan (if applicable), and the buyer brings their funds. The title company disburses funds according to the settlement instructions, including paying off existing liens and mortgages.
Step 6: Recording
The deed and mortgage are recorded with the county. Recording provides public notice of the new ownership and the lender's interest. This is the legal event that transfers ownership.
Step 7: Policy Issuance
Once recording is confirmed and remaining underwriting conditions are met, the title insurer issues the final title insurance policy. For the transition from commitment to policy, read When Does a Title Commitment Become a Title Policy?
Could Something New Still Appear
Yes, even after requirements are cleared, the bring-down search could reveal new liens or issues recorded after the effective date. The title company addresses these before closing. If a new issue arises, it may add new requirements or delay closing.
Key Takeaway
Clearing requirements is a major milestone, but the closing process continues through funding, recording, and policy issuance. Stay in communication with your title company through the final steps.
FAQs
How long does it take from clearing requirements to closing?
It varies. If all parties are ready and no new issues appear, closing can happen within days. Complex transactions or those with third-party conditions may take longer.
Can I close if not all requirements are cleared?
In some cases, requirements can be satisfied at closing (such as recording the deed and mortgage). Others, such as lien payoffs, may need to be completed before closing. Your title company will advise on timing.