Which document is commonly involved in the closing process of real estate transactions?

The title insurance policy is a crucial document in the closing process of real estate transactions because it protects the buyer and lender from potential losses arising from defects in the title or issues related to ownership. This could include problems like undisclosed liens, claims from previous owners, or errors in public records. When a transaction closes, the title insurance policy is issued to ensure that the new owner has clear and marketable title to the property.

During the closing, various documents are reviewed and signed to finalize the transaction, but the title insurance policy specifically safeguards the investment in the property itself, making it a key component of the closing process. The buyer's payment for this policy typically occurs simultaneously with the closing costs, further solidifying its central role in ensuring that all title-related issues are resolved before the buyer takes possession of the property.

In contrast, the other documents listed serve different purposes: a homeowners association contract governs community guidelines and management for properties within a specific development, a real estate investment trust agreement pertains to investments in real estate portfolios held by trusts, and a lease agreement outlines the terms between a landlord and tenant but does not directly relate to property title or ownership at the point of closing.