Title Documents

In Colorado you will encounter two title related documents in almost every real estate purchase.

The title company issues a Title Commitment.  This document outlines the terms under which they will insure the Buyer’s ownership or “title” to the property. If you are buying a single-family home, not a condo or townhome, the lender may require a survey of the property.  A survey indicates the location of the property boundaries and any improvements such as the home, garage, decks, and so on.

And, finally, prior to closing, the title company will prepare a balance sheet for you.  This shows all the charges associated with the purchase of the property;  (e.g., cost of the property, lender fees, etc.) and all the money coming in to allow the closing to occur (e.g., the loan, your earnest money deposit, a tax credit from the seller, etc.). This balance sheet is called a Settlement Statement.

You should expect to see both of these title related documents during the home buying process.