What is the Settlement Process?

Penn Jersey Abstract, Inc. is a licensed, bonded, and insured Pennsylvania title company with its headquarters conveniently located in Bethlehem, PA. As a part of our licensing and bonding we are authorized to receive and disburse funds pursuant to the terms of any contract for the sale of real property and the instructions provided by lenders. We can do this for any transaction that closes anywhere in the Commonwealth of  Pennsylvania. Receiving and disbursing funds is an integral part of the settlement and closing process. Funds from a buyer’s lender, or an owner’s lender, in the case of a refinance, must be received and held by a third party for settlement. Title companies perform this function. The funds are held in escrow until the day of settlement, at which time they are disbursed to various local and state authorities, as payoffs to lenders, for liens and taxes, to pay fees and closing costs, and as net proceeds to sellers, and in the case of a refinance, to the borrowers. All funds are received and disbursed according to the contract, lenders’ instructions, and the Closing Disclosure which is reviewed and approved by all parties prior to signing any other closing documents.

What are the duties of the settlement/title/escrow company?

The settlement/title/escrow company is responsible for carrying out the instructions from the various parties involved including lenders, other financial institutions, real estate agents, and borrowers.  The responsibilities include but are not limited to  examining the title search and clearing title, preparing and issuing a title commitment, ordering payoffs and surveys, distributing a preliminary Closing Disclosure, receiving funds, wiring funds, recording deeds and mortgages, preparing and issuing a policy of title insurance, and returning all documentation to the correct companies/government agencies. The settlement/title/escrow company is also responsible for disbursing funds to lenders (payoffs), sellers (proceeds), and third parties as instructed.