Lenders often ask why they need to get a title company to sign their closing instructions, given the stress that it can add to the closing process. In many cases, the title company can refuse to sign the closing instructions if they are not prepared or explained properly. However, if the instructions are prepared and explained correctly, the title company is more likely to sign them.
In order to get a title company to sign the closing instructions, it is important to understand why they are necessary in the first place. The closing instructions typically include information about the property, the loan, and the parties involved in the transaction. This information helps to ensure that the title company can properly protect the lender’s interest in the property.
It is also important to make sure that the title company has a clear understanding of the loan terms and conditions. The title company should be able to review the closing instructions and determine whether or not they are in compliance with the loan agreement. If the title company is not able to understand the loan agreement, they may refuse to sign the closing instructions.
Lastly, the title company should be provided with a copy of the deed to the property. The deed should be signed by all parties involved in the transaction, including the seller, the buyer, and the lender. Without the deed, the title company may not be able to properly protect the lender’s interest in the property.
You can read this full article at: https://geracilawfirm.com/why-make-title-companies-sign-lenders-closing-instructions/(subscription required)
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