The Role of a Title Company

Selling and buying is a big step in the real estate world. For a buyer, it is the investment of a lifetime and a moving forward for a seller. After choosing the home of your dreams, the next thing to do is to obtain a title of the home for the Title Company. A title will give a buyer the right to claim and use the property. It is necessary that you understand the services offered by a title company.

The Role of a Title Company is described as follows:

1. It receives the earnest money. This money is required by a buyer who is serious in purchasing the home or the property. If the sale pushes through, the amount will be added to the down payment, and if not, it could no longer be given back to the buyer, unless otherwise agreed by the parties concerned.

2. The company makes an extensive search of the title of the property. This serves to check the records of the home. This verifies the right of a seller to transfer ownership. This reveals if there are any faults, liens, demands, restrictions or privileges of the property.

3. After making the search, the title company now proceeds to a Commitment of Title Insurance. This is issued to the mortgage lender and copies are given to seller, buyer, realtor and lawyers on both sides. This sets forth matters and exceptions that have to be satisfied before issuing and settling the title policy. Typically, the lender requires that a buyer secure a Mortgagee's Title Policy for their benefit. Both will serve as assurance and will protect from any hidden defects, adverse title claims and even risk to the insured.

4. The time between receipt of contract and the final settlement, the company will establish close contact with the lender, the lawyers and the realtor. This is necessary in order to acquire the necessary documents for the closing process.

5. When a date is set for the closing, the attorney or the lender will send instructions on the closing, all legal documents such as the Warranty of Deed, Deed of Trust, etc. to the escrow officer of the company. The escrow officer compiles all title fees, lender's charges, miscellaneous fees and other costs of closing into a final settlement. During this time, the buyer will be informed of the certain amount to bring during the closing date. When all parties are present, the fees and papers will be explained by the escrow officer, reviewed and then executed.

6. The company will assume responsibility in collecting the funds for a prompt and exact disbursement. After the closing is done, the company will see to it that all legal documents are filed for record, the necessary paper works returned, mortgage lender's requirements are fulfilled and liens are fully paid and the title policies prepared and then sent.

7. A title company plays a big role in the selling and buying process. It establishes involvement from the time of signing the contract up to the time of the transfer of ownership. They strive to secure that the process is done in adherence to the instructions in the parties involved in the most effective and pleasing manner. The title company considers service as of the utmost importance.

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