Frequently Asked Questions
Here are a few of the most commonly asked questions about settlements and titles.
More questions? Contact us!
Why do I need to wire funds for my settlement?
In Maryland, we are not permitted to conduct a settlement until we can verify all the funds needed at settlement are received and accessible. A check, even a bank check, normally has a hold placed on the funds by the bank accepting the deposit. That hold would create a delay in our ability to disburse the funds to all the parties at settlement. This is why we request all funds be wired, so that we once we have confirmation from our bank that the wire was received, the funds are available to disburse.
Do I need to attend settlement?
Not necessarily. Everyone involved in the transaction will need to sign the documents specific to them. However, there are times when a power of attorney can be used or a document package can be sent via mail prior to the actual settlement date for signature and notary (most common for parties located outside Maryland). If you need to make arrangements for either a power of attorney or to receive documents via mail, please notify your lender and us as soon as possible so we can accommodate the request without creating a delay in the settlement.
Can my settlement be conducted outside of normal business hours?
In most cases, the optimum settlement time will depend on the hours of operation for your lender, not Key Title. This is simply because conducting a settlement when your lender is closed means there is no one available to answer any questions that may arise during the settlement, or to make required corrections to loan documents when needed. Normally, the lenders instructions will state that Key Title is not authorized to make any changes without prior written authorization from the lender. If the lender is unavailable, the settlement may need to be rescheduled.
Can settlement be conducted in my home?
While there has been a trend in the last decade to push settlements from the title company or realtors office into the consumers home, it is not recommended. There are two main issues with settlements away from the office environment provided by the settlement company or realtor's office. First, in the case of a purchase transaction, it is normally more comfortable for the buyers and sellers to meet in a neutral location. Second, the office setting allows for secure access to systems used to correct errors that may exist in the settlement documents. Many lenders now require title companies to communicate to them through web portals. Any changes to documents which would require lender approval must be requested through a secure site, and corrected documents will only be sent back to the title company through this same site. Those documents must then be printed and executed for settlement to be complete. The logistics of keeping a settlement moving forward in a timely fashion for all parties is dependent on our ability to address any settlement issue immediately. We know your time is valuable and want to avoid any situation that could create a delay in completing your settlement.
I was offered a free appraisal or home warranty if I used a specific title company. What's the catch?
The Maryland Insurance Administration has issued memorandums on this topic, finding that anything of value used to induce a consumer into choosing one provider over another, or trying to convince them not to shop for services, constitutes a violation. Often, the "free" service is paid for through higher overall costs of settlement services to the consumer. It is your right to shop for settlement services and to compare quotes from as many service providers as you need to feel comfortable with your selection.
I'm selling my home. Why do you need my personal information?
We are responsible for confirming any and all items that could block clear title are identified and addressed. That responsibility includes 1) confirming that there are no judgments or liens against any current owner (seller) that could affect the property; 2) independently request payoff statements for any existing mortgages on the property, and; 3) report proceeds received by any seller to the federal government.
In each of these cases, we would need to have the same kinds of personal details your bank would request from you when accessing your accounts.
I'm refinancing my mortgage. Can I waive my three-day right to cancel?
Generally, no. The three-day right to cancel exists to make certain borrowers and buyers have time to review the terms of the transaction after having received them at settlement. This is designed to protect the consumer from predatory lenders, bait and switch schemes, and other unscrupulous lending practices that increase costs to consumers.