This is a common question that comes up when buying and selling real estate. The purpose of a title company is to search court records to verify property ownership and to identify any liens or judgments that may exist on the real estate.
The people who work at title companies are professionals who understand the complex record keeping systems at court houses. A title company is much more than just a research company. When you purchase a title search you are also purchasing title insurance which protects you in the event an unknown lien shows up against the property at a later date.
The title company follows a procedure accepted in the world of real estate closings. In some cases you can choose whether you want to purchase title insurance, but in most cases the loan underwriter will require the title search in order to protect their interests as well as yours. If you are paying cash for your property it is highly recommended you purchase title insurance.
Common Title Insurance Company Services
A professional title company will offer a range of services related to property transfers. An experienced company is prepared to offer many different services. It’s like one-stop real estate transaction shopping.
- Escrow services
- Flood certification
- Commercial and residential property sales processing
- Abandoned property title searches
- Trustee sales
- Real estate tax recording and payment
- Debt settlements
- Real estate document recordings
This list gives you an idea of the many services a title insurance company offers. All services are completed efficiently and as quickly as possible. The company agents know you are anxious to close the sale and want to help you finish the transaction with as few problems as possible.
For many people, buying and selling a home is a major financial commitment. A title company actually does a public record search for all kinds of property including residential and commercial.
The first step the title company takes is doing an Abstract of Title. This is the basic search which documents all court recorded information. This information includes property ownership; liens or mortgages; unpaid real estate taxes; and easements or any other restrictions recorded against the property.
Once the Abstract has been completed, the title company will then prepare a Commitment of Title Insurance for the buyer or seller. The insurance will list all the information uncovered during the title search including problems which must be resolved before the sale of the property can be completed. As part of the service you receive for buying the title insurance, the title company will do whatever it can to resolve problems and create a clear title.
Closing the Deal
At the actual closing, the title company makes sure all the proper documents are signed and funds are properly collected and distributed. The title company is responsible for insuring the existing mortgage is paid off and the seller receives and net sale proceeds. The title company must also record the new lien against the property and the new deed at the court house.
Taking Care of Valuable Assets
Real estate transactions are the most important financial events in the lives of many people. Buying and selling real estate is a complex process that can get bogged down unless close attention is paid to the process from beginning to end.
A Title company helps buyers and sellers complete and record the sale of real estate and avoid problems that might not be immediately apparent or obvious.
In order to make the real estate transactions proceed as smoothly and seamlessly as possible, it’s important that you choose the services offered by a professional title company. Hiring the right title company can make all the difference when it comes to a successful closing.