A title company makes sure the proposed title on a piece of real estate is legitimate, accurate and everything about the legal status of the property is told to all parties involved in the transaction.
Checking the status of the title is important. The check does not guarantee the property has a clear title. It does check to see if there are old outstanding loans, liens, easements or other issues attached to the deed.
A title company does two major actions when involved in a real estate transaction.
1) It checks the status of the title.
2) It issues title insurance.
The title search then reports this information to the buyer and the seller. This report is called an abstract of title.
If there are issues like those mentioned above, the buyer and seller then have to work out how these matters will be handled. Sometimes the information found in a title search is a deal killer, but that is not the fault of the person doing the title search.
When the issues are financial, past due taxes, construction or other liens, a mortgage company will require some settle these claims before completing the loan. Sometimes, these kinds of financial claims against a title can force a sale, which is something the new buyer and the mortgage company do not want.
Sometimes a title company will also order a property survey to make sure the legal description is both accurate in the deed and matches what is on the property. A survey can point out easements that might otherwise not be found, but there is no guarantee of this.
Title insurance protects the buyer and the mortgage company from errors and problems in the title search.
For real estate title company needs, contact Wendy at http://www.EverythingTitle.com, or call (310) 927-0351