What is a Title company and What Do They Do?
What Does a Title Company Do?
They carry out a title search
This is one of the most significant duties performed by these companies. Title searching enables you as the buyer to acquire the information on the history of that particular home that you intend to buy. This information explains who was the buyer and the seller of that particular property. The title search ensures there are no outstanding issues with the property such as;
Open second mortgages and HELOC loans
Special assessments Judgements or demands
Unpaid HOA fees Liens for unpaid taxes
Other legal issues specific to the area
What about after the completion of the title search? These companies finally come up with a comprehensive report basing the information on their findings. In the home buying process, this report is very significant. It entails any problems that might stall the sale of the home. What this uncovers by the title search is to come up with an abstract of the title. Finally, a legal document referred to as the title opinion letter indicating the validity of the title issued.
Title Companies also Serve as the Escrow Officers
Hidden issues a complete title search will reveal
Previously unknown land mineral rights
Invalid court proceedings
Issue the buyer with the title insurance
After the validity of the title has been established, the company involved goes on and issues title insurance. Title insurance protects the new owner from any issues that may come up from the previous ownership disputes among other problems. The advantage that comes with this kind of insurance policy is that the buyer pays a one-time premium depending on the value of the property bought, unlike other insurances that have annual premiums. In this case, the insurances involve are the owner’s and lender’s title insurances protecting the property owner and the mortgage company respectively.
Orders a property survey
Most of the lenders ask for a location map of the property, therefore, with the consent of the buyer, the company orders a survey to be done. After the survey is done, they review it to ensure that no issues will arise during the closure of the process or later on. In case of any issues detected, both the lender and the buyer are notified. On the settlement date, the survey is handed over to the new buyer.
The title company acts as a closing agent
For all the transactions involved in the home buying process, the title companies are often the closing agents. This means that the company acts as an agent of both the buyer and the seller during the transactions. As a closing agent, they receive and surrender all kinds of payments related to the transactions and also obtain the signatures on all the documents involved. After signing the documents, all those that require to be recorded including the mortgages and the deeds are recorded by the company in the land records office. The above are some significant services offered by a title company.