A title company is a business or legal entity that provides services for the transfer of ownership of the real estate, such as issuing titles and deeds of trust. They also conduct title searches to ensure the property is free and clear of liens or other encumbrances. So, what does a title company offer?
Issue Titles and Conduct Title Searches
A title company is a company that specializes in issuing titles to property and conducting searches to ensure that there are no liens or other claims on the property. They work with a mortgage lender to ensure the property title is clear and free of obstructions before issuing mortgage rates. Title companies also handle the transfer of titles when selling a property.
Act As Escrow Agents
A title company may act as an escrow agent, which means they will hold onto essential documents and funds until all parties involved in a real estate transaction have fulfilled their obligations. This helps ensure everyone gets their share and the deal goes smoothly.
Determining Who Holds the Title
The title company will also be responsible for determining who holds the title to the property. In some cases, the seller may still have the title; in others, it is essential to transfer it to the buyer. The title company will work with the relevant parties to determine who holds the title and ensure that it gets appropriately transferred.
Handle the Payment of Property Taxes
In addition to their work with mortgages and property sales, title companies also handle the payment of property taxes. They collect the taxes from the homeowner and then remit them to the appropriate government agency. This service comes in handy with mortgage payments, as it is easier for the title company to handle both payments simultaneously.
Ensure a Smooth and Successful Real Estate Transaction
Title companies play a significant role in ensuring a smooth and successful real estate transaction. They also handle all the documentation and paperwork related to the transaction, which can help to keep things running smoothly. Acting as a neutral third party can help mitigate potential conflicts that may arise during the sale or purchase of a property.
They Also Ensure That There Are No Liens on the Property
Another essential service that title companies provide is ensuring that there are no liens or other claims on the property. This includes any liens for unpaid taxes or mortgages and any lawsuits or other claims against the property. Before the sale of a property gets completed, the title company will search public records to ensure there are no outstanding claims against the property. If there are any liens or claims on the property, the title company will work to resolve them before completing a sale.
Special Assessments on the Property
Some title companies also offer special assessments on the property. This type of assessment can help to determine the value of the property for tax or insurance purposes. It can also help to determine if you need to address any zoning or code violations. Special assessments are not necessary for all states, but they can be a valuable service for those buying or selling a property.
They Offer Services Such as Title Insurance
Title insurance can give peace of mind to all parties involved in a real estate transaction and help ensure the process goes smoothly. In addition to their role in the transaction, title companies provide other essential services, such as title insurance. This type of insurance protects buyers and lenders from any losses that may occur if there are problems with the title to the property.
There are many reasons why you should consider purchasing owner’s title insurance. One of the important reasons is that it can help to protect you from the costs associated with defending your title in court. If someone were to challenge your ownership of the property, you would be responsible for the cost of hiring an attorney to protect your title. This could be a costly proposition, and it is something you would likely want to avoid if possible.
They Also Involved in the Closing Process
Another essential service that title companies provide is their involvement in the closing process. The closing is the final step in a real estate transaction; during this time, all the paperwork related to the sale is finalized and signed. The title company will be responsible for preparing and reviewing all the closing documents and ensuring they get all the necessary signatures. They will also coordinate with the other parties involved in the transaction, such as the real estate agents and lenders, to ensure that everything is ready for the closing.
How Should You Choose A Title Company?
When selecting a title company, it is essential to consider several factors. One of the most important is the company’s experience in the industry. You want to ensure that your chosen company has a proven track record of completing transactions quickly and efficiently. It is also essential to consider the company’s reputation. You want to ensure that the company you select is well-respected by industry professionals. Finally, you want to ensure that your chosen company offers competitive rates. Considering all of these factors, you can be sure that you are selecting the best possible title company for your needs.
Bottom Line
The title company is vital in ensuring a smooth and successful real estate transaction. Acting as a neutral third party can help mitigate potential conflicts that may arise during the sale or purchase of a property. They also handle all the documentation and paperwork related to the transaction, which can help to keep things running smoothly. If you are ready to buy a new home, contact the Unified Title Company family for all your real estate needs.
