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What Does A Title Company Do?

 

 

Whether you’re selling a home or purchasing a new one, there are typically three entities that you end up working with: a real estate agent, a mortgage lender, and a title company. Title companies play a major role in a real estate transaction and here’s why:

 

  • A title company makes sure that the title to a piece of real estate is legitimate and then issues title insurance for that property.

 

  • Title insurance protects the lender and/or owner against lawsuits or claims against the property that result from disputes over the title.

 

  • The title company will ensure that the new titles, deeds and other documents are filed with the appropriate entities.

 

How does a title company know that a title is legitimate?

 

  • The title company does a title search, which is a thorough examination of property records, to ensure that the seller of the property legally owns the property.

 

  • During the title search, the title company will also look for things, such as, outstanding mortgages, liens, judgments or unpaid taxes associated with the property or other issues that may impact ownership.

 

  • The title company may also require a property survey to ensure the exact boundaries of the property line.

 

After the title is found to be legitimate, then the title company will likely issue a title insurance policy. So, what is title insurance?

 

  • Title insurance protects lenders or owners against claims or legal fees that may arise from disputes over the ownership of the property.

 

  • Owner’s title insurance protects the property owners from title issues.

 

  • Lender’s title insurance protects the mortgage company.

 

To learn more about title insurance speak with one of our Closers today!

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