What Exactly Does A Title Company Do?
You do not generally buy more than a single property in your lifetime. It is a high value transaction involving legal risks. Besides using a professional home inspector for pre-inspection of the home, the buyer has to rely on a number of other professionals such as real estate attorney and a title company.
The title company performs the necessary role of checking all aspects relating to the title of a property right from the legal ownership to title insurance. The buyer and title company have a common goal of avoiding any legal disputes which might emerge later in case the title of the property is not clear.
It would be title company's prime responsibility to provide the necessary comfort and assurance to the buyer that the property he intends to buy is free from any legal trouble and would not lead to any ownership dispute once the buyer closes the transaction.
The title company starts playing its role as soon as the sales agreement is signed between the buyer and the seller until the time that the title is transferred from the seller to the buyer. They have to ensure compliance to the necessary real estate laws and regulations of the state in which the transaction takes place. The primary role and responsibilities of a title company is covered in the sections below
Verification of the seller
Their main role is to establish the seller in whose name the property is registered as per the legal documents submitted with the State. The title companies find out the legal owner of the property by examining and verifying the public land record held by state.
The property title can be legally transferred
The title company also takes steps to help real estate buyers in that they confirm that the title company ensures that there are no liens preventing the buyer from taking title cleanly. Any and all liens and encumbrances must be settled at the point of title transfer.
Insuring the title
In many instances, the title company also organizes for title insurance to the buyer against any legal risks that might surface in the future. This would insure the buyer against any ownership issue emerging in future and costs involved in litigation and other matters related to settling any dispute regarding the sale being made by the actual owner of the property. Though the buyer has the right to choose his title insurer, the buyer usually prefers the same company with whom the lender takes tile insurance cover.
The "Commitment of Title Insurance" is issued once the title company has certified the title of the property. All parties and participants in the transaction receive a copy.
You have to gather all the information regarding the property your are purchasing a you spread out the liability for this step by hiring the appropriate entities to do so. - 23217
The title company performs the necessary role of checking all aspects relating to the title of a property right from the legal ownership to title insurance. The buyer and title company have a common goal of avoiding any legal disputes which might emerge later in case the title of the property is not clear.
It would be title company's prime responsibility to provide the necessary comfort and assurance to the buyer that the property he intends to buy is free from any legal trouble and would not lead to any ownership dispute once the buyer closes the transaction.
The title company starts playing its role as soon as the sales agreement is signed between the buyer and the seller until the time that the title is transferred from the seller to the buyer. They have to ensure compliance to the necessary real estate laws and regulations of the state in which the transaction takes place. The primary role and responsibilities of a title company is covered in the sections below
Verification of the seller
Their main role is to establish the seller in whose name the property is registered as per the legal documents submitted with the State. The title companies find out the legal owner of the property by examining and verifying the public land record held by state.
The property title can be legally transferred
The title company also takes steps to help real estate buyers in that they confirm that the title company ensures that there are no liens preventing the buyer from taking title cleanly. Any and all liens and encumbrances must be settled at the point of title transfer.
Insuring the title
In many instances, the title company also organizes for title insurance to the buyer against any legal risks that might surface in the future. This would insure the buyer against any ownership issue emerging in future and costs involved in litigation and other matters related to settling any dispute regarding the sale being made by the actual owner of the property. Though the buyer has the right to choose his title insurer, the buyer usually prefers the same company with whom the lender takes tile insurance cover.
The "Commitment of Title Insurance" is issued once the title company has certified the title of the property. All parties and participants in the transaction receive a copy.
You have to gather all the information regarding the property your are purchasing a you spread out the liability for this step by hiring the appropriate entities to do so. - 23217
About the Author:
Gavin King is the Designated Broker of Realty In Idaho and enjoys writing articles on boise idaho homes and homes for sale in boise idaho
posted by X - Men @ 6:08 AM
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