What is a self-performed real estate closing?
In short: It's when our team files a transfer of deed from Seller to Buyer without using a title company or attorney.
When we self-perform a real estate transaction, that means we're doing the work of a title and escrow company or attorney by performing title and lien searches, requesting payoff amounts, preparing transfer paperwork, coordinating notary signatures and transfers of funds, and finally having the deed transfer recorded with the local county recorder's office.
Why would someone want to self-perform?
There are certain types of loans which title companies and attorneys either refuse to, or are barred from transferring subject-to. The only option when you encounter this situation is to self-perform the closing.
What's different about a self-performed closing?
When we self-perform, we're not providing title insurance, so it's important that the end-buyer (and any new lenders) be fully aware of that and be comfortable with no title insurance based on a review of the title and lien searches. If someone comes with a claim to the property, there will be no title insurance to lean on. Title insurance claims are infrequent and range from minor (small liens that weren't discovered or paid) to major (such as a fraudulent sale when a "Seller" didn't rightfully own the property to be sold).
We also aren't an escrow company and are seeking a national partner to be the escrow agency while our team simply does the title work. In the meantime, our process ensures all parties complete the appropriate paperwork, get paid, and then the documents are recorded with the county.
Honestly, there are also higher risks of errors and omissions in the process of transferring the property. While the overall tasks in the process are relatively simple for a team with attention to detail, there are local nuances we may not discover during the process of interviewing county officials, lienholders, HOAs, etc. Due to this variability, there is a higher risk of additional fees, transfer taxes, surcharges, etc that must be paid post-COE to the city, county, state, and/or lienholders. While we do perform due-diligence to discover any local requirements, the only way to avoid this risk is to go with a local title company that is well-versed in the local requirements.
How can I get title insurance?
This is an area we're still researching to determine how we can acquire title insurance after-the-fact. As we continue to gain experience in more states and build better relationships, we will improve our craft.
How fast can you self-perform a closing?
We have done them in as little as 48 hours to meet COE deadlines, such as when a title company refuses to close the transaction a day or two before scheduled COE.
Do you need a self-performed closing? Contact email@example.com or book a call to request assistance.