If you’re buying or selling a home or land, you’ll need the service of a title company. A title company protects the interests of everyone involved in the transaction, like a title company professional from a professional firm like Capitol Title Insurance Agency, can explain. Whether they are buying or selling a property, providing financing or they are a real estate professional.
If someone is preparing to refinance their existing mortgage or purchase a new home with a loan, the mortgage lender normally requires one to find a title company to work with fairly early on in the loan process. If someone is not familiar with the home buying, land buying, selling or refinancing processes, one may not be certain what a title company actually does. A title company is one of the most important third parties someone will work with throughout the entire transaction.
A title company provides:
Research the Property’s Title History
Early in the process, the title company will begin researching the property’s title history and will issue a title insurance commitment. This title commitment will show all of the property’s owners as well as the requirements to transfer clear title to the property. Ultimately, the title commitment should show a clean, unencumbered line of ownership that leads to the current owner. If the title history research shows that the current owner does not own the property legitimately or that there may be a dispute or other issues with the title, work is completed to generate a clean title.
Facilitate the Closing Process
The title company also facilitates all aspects of the closing. This involves preparing the title documents they need to close, researching the current payoff figures and creating a Closing Disclosure and/or ALTA Settlement Statement. The Closing Disclosure and/or ALTA Settlement Statement shows all of the financial transactions related to the closing, such as the lender’s fees, title fees, hazard and flood insurance fees, real estate fees, taxes, escrows, payoffs and other miscellaneous fees involved in the closing based on which type of property you’re buying or selling.
The title company will handle all financial disbursements related to the closing, including sending wires or preparing checks for all of the vendors who will be paid for their services at closing.
Issue Title Insurance
A final service offered by the title company is the preparation of a title insurance policy for the lender and/or the Buyer. The title insurance protects the lender and/or buyer from financial liability in the event there is a dispute over the ownership of the land or a lien later on. These types of disputes can create costly legal fees and could also strip the property’s ownership from the buyer. Title insurance, in accordance with the policy, will pay for these legal expenses and for any loss if one occurs.
Contact a local title company for all your title transfer requirements or questions.