Two common questions I get from my real estate clients who are selling property are: how and when do I get my money?
In Illinois we make sure all parties to the transaction (buyer & seller) are safely covered with title insurance. Title insurance protects the homebuyer and his lender from the possibility that the seller doesn’t – or previous sellers didn’t – have free and clear ownership of the property and are thus unable to transfer full title ownership to you.
In order to obtain title insurance you must have your closing at a title insurance agency office where the policy is provided. The title insurance company has an interest in making sure the closing is handled correctly. Therefore, the title insurance agency conducts the closing. One of the benefits of using the title insurance company is that the title insurance agency acts as the “middle man” for the transaction and collects all of the monies from the buyer and lender. Once all of the money has cleared, the title company then disburses checks to all parties that need to be paid to complete the deal. In most transactions, checks will be given to the real estate agents, real estate attorneys, and the seller’s lender and/or lien holders. Any remaining proceeds are disbursed directly to the seller.