Closings with Karissa: Split Closings

What is a Split Closing?

If you are a Buyer, Seller, Real Estate Agent, Banker, Lawyer, or Developer in the area, you may have heard a new term being used in the Manhattan, Kansas area real estate market.  The term is “split closing.”  What is a split closing? How does it work? Is it a good thing for myself or my clients?

To explain a split closing, it is necessary to start with how a traditional closing usually works in this market.   Typically, the Listing Agent will identify a title company for the MLS that the Seller has selected.  In a For Sale By Owner (FSBO) transaction the parties will discuss a title company to handle the transaction.  Buyers then decided make offers on a particular property and accept the Seller’s title company or offer to close at a different company. The order then goes to that title company on the contract that is signed by all parties to coordinate the title work and closing.








So what is a Split Closing?

A Split Closing is where the Seller chooses one title company, and the Buyer chooses another title company. The Seller’s title company will prepare a deed packet and handle the Seller’s side of the transaction.  At the same time, another title company is representing the Buyer and most often their loan process.  Then, the day of close, the Buyer’s close at their title company and the funds are typically wired across town or disbursed by the Buyer’s company.  The Seller’ title company then issues an owner’s title policy and the Buyer’s company issues a loan policy.  Sound confusing and costly?


Then why would anybody choose to do a split closing?

This option is popular in some markets for whatever reason. However in the Flint Hills area it is less popular. The closings are more complicated with so many parties involved. Money has to be moved from one company to the other, opening up the possibility of a high chance of wire fraud. Additional releases may be required to share client information and it can end up costing more for the Buyers in the long run due to not being able to take advantage of the simultaneous issue loan policy premium. Most often, split closings duplicate costs, is confusing, is less efficient, and causes a lot of headaches.


What if one of the parties does not live in your service area? That is not a problem 😊 Tallgrass Title has a solution!

There are many options available for closing and keeping the transaction all with one title company.

Mobile Notary – We can arrange for a mobile notary to sign with Buyers and Sellers anywhere in the country.

Remote Closing – We can set up a signing appointment with another title company or Attorney’s office closer to the signer’s location.

RON – Remote Online Notary is currently revolutionizing the title industry. It allows for a notary public to meet with the client online in a virtual closing room to sign documents electronically. This option is typically the most cost effective and the title company receives the documents quicker than with the other two options.

*Tallgrass Title utilized a RON signing platform that allows us to act as the notary so our clients get to meet with their Closing Agent to sign documents.


Choose a title company that is looking out for you. 

Tallgrass Title is dedicated to providing exceptional service and support to our clients. We understand that Selling and Buyer a home is the biggest monetary life event you will ever go through. Pick a company where you feel comfortable and welcome.

For additional information on split closings or other title/closing related topics feel free to contact us. We are here to help make this as smooth a process as possible.