What Does a Title Company Do?

Any good title company acts as the glue for all the different parts involved when you buy a home. They work with everyone involved to complete the closing of the sale: lender, realtors, buyers, and sellers. 

Search title

After going under contract, the purchase and sale agreement will be sent to the title company. They will search the property for any problems with the title.

This is an important step in buying or selling a home. Here's an example of how it could go bad if a title company wasn't involved:

You buy the home of your dreams and begin moving in. Two months after you've settled in you get served with legal documentation to appear in court. A person you've never met, or even heard of, is suing you for possession of your new home because they have a claim to the deed that was never resolved 30 years ago.

Your chosen title company will find claims and liens against the property and either make sure they are resolved before closing, or give you the right to walk away. Most real estate contracts have a contingency for clean title built in. 

Issue Title Insurance

Your title company will also make sure the legal description of the property is insurable and provide title insurance, in case an issue was missed that surfaces in the future. 

Title insurance protects you and the lender against any litigation that arises around a title dispute. Should your title company have missed the dispute from the above example, title insurance will protect you during the litigation.

Closing Agent

The title company also gets all documentation together for closing. They will gather all the numbers and provide a settlement statement and have all of the closing documents you need to sign ready at the closing table. Your title agent will answer any questions you have about the closing paper work.

The title company will also collect closing costs and distribute the monies to the appropriate parties.

Lastly, they will record the necessary documents at the county's office to ensure the property transfer.

Hiring a title company or title attorney to ensure your title is clean, is invaluable. Don't overlook the importance of this step in the home buying process.

Contact Us if you’re ready to talk about buying or selling a home!