What is a Title Company?
In common real estate transactions, title companies play a major role. The role of a title company is to act as a combined agent for the insurance company, the seller, the buyer and other parties involved in real estate transactions. Title companies, on receiving their title company fees, are responsible for reviewing titles, issuing insurance policies, facilitating the closing of mortgages, studying files and completing paperwork to ensure the transaction is completed successfully and without much delay.
Title companies usually have a real estate title review and research department. These departments are responsible for reviewing public records, to inform interested parties about the condition and status of the property they are interested in. Title companies are, in short, responsible for managing anything and everything related to real estate. Not only do these companies provide information to each of the parties about a particular real property, they also provide title search information related to other types of foreclosures and legal actions regarding real estate.
Roles of a Title Company
Titles companies make sure that the title of a real estate is genuine and legitimate and issues title insurances for that particular property. These companies also protect the owners and lenders from lawsuits and disputes over a specific title. Other than this, title companies also fulfill a number of roles when during a real estate transaction, which include:
Title companies are often known as the closing agents of real estate transactions. On continuing its role as a closing agent, these companies are responsible for obtaining signatures of the buyer on all closing documents and also making the payments related to the transaction. After the documents have been signed, documents like mortgages and deeds are further processed and recorded in the local county.
Title companies also act as an escrow officer, meaning these companies are a medium between the buyer and the seller. In simple words, the purchaser of the particular real estate will provide the title company the necessary funds to cover the purchase price and the seller will provide the company the signed documents of the property. Acting as an escrow officer, these companies only release the money and documents of the property after the terms and conditions related to the transaction have been fulfilled.
How to Pick the Right Title Company?
It is important that you pick the right title company as you are risking a great deal of money as well as the documents of your property. So, to pick the right title company, ask your friends and family or anyone you know who has recently bought a new home, about the title company they used. Go over a number of title companies before selecting one to ensure that you make the right choice.
Now that you know what a title company is and the role it plays during a real estate transaction, make sure to choose the right title company when buying a house or conducting any other real estate transaction to ensure that your investment is safe and secure.