| There are many people who want to know the | | | | In addition, the title company is usually in charge of |
| purpose of a title company in a real estate transaction. | | | | organizing the entire process during escrow. It has to |
| Any home buyer wants to be sure that they will be | | | | synchronize things between buyers, sellers, mortgage |
| receive a title to a property that is free and clear. | | | | companies, realtors and anyone else involved in the |
| Buyers should beware and never buy a home unless | | | | process. The company ensures that everything gets |
| the title is free and clear. | | | | done how and when it is supposed to be done so that |
| As a buyer, you want a title that is free and clear | | | | the property transfer gets done in a lawful manner. |
| because you are the legal owner of the property once | | | | If a title company is in charge, it will also be responsible |
| the deed goes from the seller to the buyer. Since you | | | | for collecting all the money due and disbursing it to the |
| will be held legally responsible for any liens or | | | | corresponding parties. It will then pay the costs of the |
| encumbrances on the property, you should not wait | | | | transaction, any existing mortgages, and give the net |
| until after you buy the home to make sure the title is | | | | proceeds of the sale to the seller. The guidelines for |
| free and clear. | | | | the entire process are listed in the HUD 1 settlement |
| The title company plays a crucial role because it does | | | | statement. |
| an abstract of title, meaning that it searches through | | | | Once closing occurs, the title company must record all |
| the country records where the property is located, and | | | | the legal instruments such as the deed, assignments, |
| it makes sure that the title is free and clear from any | | | | mortgage papers, etc., at the county courthouse and |
| and all liens and encumbrances. The abstract will | | | | the make sure that the correct documents go to the |
| determine if there are any liens against the property, or | | | | parties involved. |
| whether there are any other concerns that can arise | | | | In essence, the title company is like an orchestra leader |
| later and affect an ownership claim. | | | | and it makes sure that everyone plays his/her/its part |
| The title company will conduct research into past | | | | when they should. It makes sure that everything runs |
| mortgages, deeds, liens, claims, maps, tax records, | | | | effortlessly and easily between all of the parties |
| CC&Rs, divorces, court judgments and marriages | | | | involved. |
| which may encumber ownership claims. After the | | | | The company also provides the seller with peace of |
| abstract is done, a title opinion letter and/or a | | | | mind by issuing insurance in case it does not uncover |
| commitment of title insurance will be issued. These | | | | everything relating to the title. You will know that if any |
| documents will list the things that need to be | | | | future problems with the title come, you will be |
| completed and everything that needs correction in | | | | covered by the insurance issued by the title company. |
| order for the buyer to receive good title to the | | | | Peace of mind during and after a real estate |
| property. | | | | transaction is invaluable. |