What settlement is
In Maryland, “settlement” is what many other places call the closing. It is the day the property changes hands. Before it, a title and settlement company searches the land records, works with the lender and prepares the numbers. At settlement, everyone signs. After it, the company pays everyone who is owed money and records the deed and any new mortgage in the county land records.
Maryland First Title has done this work since 1994, for home purchases, sales and refinances across Maryland. Our residential settlement service covers the whole process for buyers, sellers and their agents. The money side, including Maryland’s transfer and recordation taxes, is explained in our guide to Maryland closing costs.
From contract to recorded deed
This is the usual order for a home purchase with a mortgage. A purchase with a loan typically settles about 30 to 45 days after the contract is signed, on the date the contract sets.
- Day 1
The contract is ratified and the order is opened
Once buyer and seller have both signed, the agent, the lender or the buyer sends us the contract with every addendum. We open the file and confirm who is involved: buyer, seller, agents and lender.
- First weeks
We search the title
We search the land records for the property’s ownership history and for mortgages, liens, judgments, easements and unpaid taxes that must be dealt with before the property can change hands.
- As soon as they turn up
We clear any problems
An old mortgage that was never released, a judgment against the seller or a missing signature from an earlier sale has to be fixed before settlement. The sooner we see the file, the more time there is to fix it.
- Through the contract period
The buyer’s lender approves the loan
The lender orders the appraisal and gives final approval. Federal law requires the lender to give the buyer the Closing Disclosure at least three business days before settlement.
- The last week or two
We prepare the numbers
We order the seller’s loan payoffs, work with the lender on its documents and prepare the settlement statement: every charge and credit, including transfer and recordation taxes and the share of property taxes each side pays.
- Before settlement day
The buyer sends funds
We email wiring instructions. Before you wire any money, call us at (410) 768-2300, the number on this website, to confirm them. Never use a phone number from an email, text message or email signature.
- Settlement day
Everyone signs
Our settlement agent explains each document before you sign it. The seller signs the deed; the buyer signs the loan documents. When everything is signed and the loan is funded, the sale is complete.
- After settlement
We pay out, record and insure
We pay off the seller’s loans, pay the taxes and everyone else on the settlement statement, and send the deed and the new mortgage for recording with the Clerk of the Circuit Court in the county where the property is. The title insurance policies are issued once recording is complete.
Who does what
| Who | Their part |
|---|---|
| Buyer | Applies for the loan, arranges homeowners insurance, schedules inspections, sends the funds due and signs the loan documents. |
| Seller | Gives us the account details for every mortgage or home equity loan, makes any repairs the contract requires, moves out and signs the deed. |
| Real estate agents | Write the contract, track its deadlines and keep both sides moving. They usually handle the keys. |
| Lender | Approves the loan, sends the Closing Disclosure and the loan documents, and funds the loan. |
| Maryland First Title | Searches and clears the title, holds the settlement funds in escrow, prepares the settlement statement, runs the settlement, pays everyone, records the documents and issues the title insurance, underwritten by Stewart Title. |
Your lender will require a loan policy, which protects only the lender. In Maryland an owner’s policy is optional; it is the policy that protects you, and its premium is paid once, at settlement. Read what an owner’s title policy covers before you decide. How the money is held between contract and settlement is explained in our article on escrow accounts.
Refinance, FSBO and estate sales
- Refinance
- There is no seller. We search the title, pay off the old loan and record the new mortgage. A refinance usually takes a few weeks, depending on the lender. When you refinance the home you live in, federal law generally gives you three business days after signing to cancel, so the new loan funds after that period.
- For sale by owner
- Without agents, the buyer and seller rely on us to keep the file moving: we collect the signed contract, coordinate with the buyer’s lender and run the same settlement. See settlement for owners selling without an agent.
- Estate sale
- When the owner has died, the personal representative named by the Register of Wills signs for the estate, and we need the letters of administration that show who that is. Start early: estate paperwork is a common reason for delay. Read selling a house you inherited.
What happens at the table
- Everyone signing shows a photo ID.
- Our settlement agent goes through the settlement statement line by line, so you can see every charge and credit.
- The seller signs the deed and the papers that confirm who owns the property and what is owed on it.
- The buyer signs the loan documents and the papers the lender requires.
- You ask questions. Nothing should be signed until you understand it.
Plan on about an hour for a purchase with a loan. A refinance or a cash sale is usually shorter. Buyers and sellers do not have to sign at the same time; if you cannot be there on the day, call us early so we can arrange it.
What to bring
Buyers
- A current photo ID for everyone signing
- Confirmation that your wire has been sent, or a certified check if we agreed to one in advance
- Your homeowners insurance details, if the lender has not already received them
- A power of attorney, if someone is signing for you, approved by us and your lender in advance
Sellers
- A current photo ID for every owner on the deed
- The bank details for where your sale proceeds should go
- Account numbers for each mortgage or home equity loan, if we do not have them yet
- Estate or trust papers, or a power of attorney, if someone is signing for an owner
Step-by-step lists for each side, from contract to keys, are in our checklist for home buyers and checklist for home sellers.
Sending money safely
We email wire instructions. Before you wire any money, call (410) 768-2300, the number on this website, to confirm them. Never use a phone number from an email. How to protect your closing funds
Sellers should be just as careful with any request for their bank details, and check it with us by phone the same way.
Where you can settle
You do not have to come to us. Settle at our Glen Burnie office, or we come to you anywhere in Maryland at no extra cost. Weekend and after-hours settlements are available by appointment, and buyers or sellers outside Maryland can settle remotely. We handle title and settlement for property anywhere in Maryland; our list of the Maryland areas we serve covers local taxes and issues by county.
- At our Glen Burnie office306 Crain Hwy N, Glen Burnie. Monday to Friday, 9 a.m. to 5 p.m.; weekends and after hours by appointment.
- We come to you, at no costAnywhere in Maryland: your home, your workplace or your agent’s office. There is no extra charge for us to travel to you.
- Remote settlementBuying or selling from outside Maryland? We arrange a remote settlement.
More about settlement
- Choosing a title company: who chooses the title company in a Maryland purchase, and what to compare.
- What delays settlement: estates, judgments, open permits, lien certificates and other common holdups.
Questions
Do I have to come to your office for settlement?
No. Settle at our Glen Burnie office, or we come to you anywhere in Maryland at no extra cost. Weekend and after-hours settlements are available by appointment. Buying or selling from outside Maryland? We arrange a remote settlement.
How long does a Maryland settlement take?
Two answers. From a signed contract, most purchases with a mortgage settle about 30 to 45 days later, on the date the contract sets; a cash purchase can often settle sooner once the title is clear. The settlement meeting itself usually takes about an hour for a purchase with a loan, and less for a refinance or a cash sale.
Do the buyer and the seller have to be at settlement at the same time?
No. Buyers and sellers often sign at different times, and a seller can usually sign ahead of the settlement date. Call us at (410) 768-2300 as early as you can so we can arrange it.
When does the buyer get the keys?
The contract decides when the buyer takes possession. In most Maryland home sales that is at settlement, once every document is signed and the money is in place. The keys usually pass through the real estate agents.