Most real estate transactions are completed with the assistance of a title company. Buying and selling real estate can be a rather complicated affair. There are numerous agreements to be signed, documents to be exchanged, and monies to be disbursed. Fortunately, you don't have to go it alone! A title company works as a third-party in the real estate transaction, handling most of the paperwork involved with the home purchase and sale.
To help give you a better sense of the full scope of title company capabilities, here is a quick list of their typical responsibilities:
One of the most important roles of a title company is to perform a title search. This process will provide insight into a home's owner history – who bought the property, who sold the property and when the transactions occurred. It will also determine if there are any demands, outstanding taxes, liens, claims against the property or the owner, or other restrictions on the property. Lenders will not issue a mortgage without a title search.
Once the review has been completed, the title company will then produce a report of search findings. This title report will list any concerns or problem areas that could potentially stall the sale of the home or cause future fraudulent ownership claims.
Provide Title Insurance
Another important role of the title company is to issue title insurance. Although a title search is conducted prior to settlement, it is practically impossible to ensure a title is clear of all hidden defects, resulting from undisclosed heirs, forgotten wills, invalid court proceedings, or defective deeds.
Title insurance policies, therefore, guarantee the title as reported and recorded. These policies protect a buyer from fraudulent ownership claims and promises relief for the buyer, should any unforeseen defects arise during homeownership.
A title company serves as the escrow officer during settlement. The title company handles all money, so the buyer does not have to give the deposit or other money directly to the seller. The title company holds the deposit and all other funds until the property closing and will oversee that all funds, including closing costs and down payments will be paid and properly disbursed.
A title company serves as the closing agent. In this case, your title company will act as a mediator between the selling and the buying party, ensuring that all necessary documentation is signed and recorded. The title company will handle the closing and preparation of all the title/transfer documents This includes not only the financial aspects of the sale, but also being sure that any deeds or documents to clear title are recorded and executed correctly so they will be legal.
Closing can feel like a whirlwind. It probably took a while for you to find a buyer or for you to find the right property. Now that you have you do not want any complications to hinder or delay the process. But with the help of a title company, you can avoid much of the settlement stress. To find a local title company in your area, contact your real estate professional today. For most buyers and sellers, the best route is to use the services of a title company to receive all the services needed to close the transaction without any issues. With Ocean Title and Escrow you receive the bonus that it is attorney owned and operated in case there is a need to go beyond what most title company can do.