A settlement fee is a fee paid to the title or settlement company for coordinating and completing the closing.
In New Hampshire, title companies handle many of the important legal, financial, and administrative steps required to transfer ownership of the property and complete the mortgage transaction.
The settlement company may:
- Search the Registry of Deeds and other public records
- Review the chain of title
- Identify mortgages, liens, judgments, easements, or other issues affecting the property
- Confirm that title can be properly transferred
- Coordinate and issue title insurance
- Work with the lender to reconcile the Closing Disclosure and final closing figures
- Prepare or coordinate the documents needed for closing
- Conduct the closing and oversee the signing of documents
- Handle the movement of funds
- Pay off existing mortgages, liens, taxes, commissions, and other amounts due from the closing
- Record the deed, mortgage, and other required documents
- Disburse funds after closing
- Complete post-closing requirements and return final or recorded documents as needed
A settlement fee may appear as just one line on the Closing Disclosure, but it represents much more than the time spent signing papers at the closing table.
The title or settlement company is coordinating many of the details that allow the property to legally transfer from the seller to the buyer and ensure that the mortgage transaction is properly completed.