Quick Answer
After a contract is sent to title, the file is opened, party information is gathered, title work begins, escrow instructions are reviewed, payoffs and documents are requested, and closing preparations begin.
Once a purchase agreement is signed, one of the first steps is sending the contract to the title company. But what actually happens after that? Here is the step-by-step process of what takes place between contract acceptance and closing.
Step 1: The File Is Opened
The title company creates a new file for the transaction. This includes assigning a file number, entering basic property and party information, and establishing the timeline for the closing. The person opening the file confirms the type of transaction, the parties involved, and the closing date from the contract.
Step 2: Contact Information Is Confirmed
The title company reaches out to the buyer, seller, real estate agents, and lender (if applicable) to confirm contact information and gather any additional details needed. They also confirm who will be responsible for specific costs and which party has selected the title company.
Step 3: Title Work Begins
This is where the title company starts researching the property. A title search is ordered to examine public records for liens, judgments, easements, ownership history, and other matters affecting title. For a detailed look at what this involves, read What Is a Title Search?
Step 4: Escrow Begins
If the title company also handles escrow, the escrow portion of the file is opened. The escrow officer reviews the contract and prepares closing instructions. They may request the earnest money deposit from the buyer or agent and begin setting up the financial side of the transaction.
Step 5: The Title Commitment Is Prepared
Once the title search is complete, the title company prepares a title commitment. This document outlines what will be insured, what requirements must be satisfied before closing, and what exceptions will not be covered. Read more about what a title commitment is and what it contains.
Step 6: Outstanding Items Are Addressed
The title company reviews the commitment and identifies any items that need attention. This could include ordering payoff statements from the seller's lender, requesting HOA documents, or beginning to resolve any title issues found during the search. See What Happens Between Opening Title and Closing for how this phase unfolds.
Step 7: Closing Is Coordinated
As the transaction progresses, the title and escrow teams begin coordinating the closing. This includes preparing the settlement statement or Closing Disclosure, scheduling the signing appointment, and ensuring all conditions are on track for the target closing date.
Why Sending a Complete Contract Matters
A complete, signed purchase contract with all exhibits and addenda allows the title company to start working immediately. Incomplete contracts can delay the opening of the file and slow down the entire process. Providing a complete contract, including any amendments, ensures the title company has everything needed to begin the work.
Wire Fraud Warning
Never trust wiring instructions sent by email without independent verification. Scammers often intercept real estate transactions and send fraudulent wiring instructions. Always confirm wiring instructions by calling your title or escrow officer directly at a trusted phone number.
Key Takeaway
Sending the contract to the title company starts a sequence of steps: file setup, title research, escrow setup, commitment preparation, issue resolution, and closing coordination. A complete contract helps everything start smoothly.
FAQs
How soon after the contract is signed should it be sent to title?
Typically within one to two business days. The purchase contract usually specifies a timeline for delivering the contract to the title company. Prompt delivery avoids delays later in the process.
Can the title company start work before receiving the full contract?
Some title companies may begin preliminary work with basic information, but the full executed contract is needed to open the file completely and perform the title search with accurate party and property information.