What is a title company?
A. The Title Company, also known as the Settlement Company, administers the transfer of the property from the seller to the buyer. The Title Company researches the title (i.e., ownership) of the property to make sure that the land that you are purchasing is legally in the name(s) of the sellers in order to transfer title to you and to make sure that when title is transferred to you there are no liens on the property other than your new loan(s). Generally speaking, a lien is the entitlement of a creditor to foreclose on property to collect on a debt. Common kinds of liens include deeds of trust, tax liens, judgment liens, and homeowner’s association liens for unpaid assessments. The Title Company is also the escrow agent for the transaction. We receive the buyers’ funds and the proceeds of any loan taken from the lender for the purchase of the property. We then pay off any existing mortgage(s) (and arrange for the lien securing the mortgage(s) to be released) as well as any other amount
Buying or selling a home is, for most people, the largest financial endeavor they will ever undertake. You need to secure the professional services of a title company to efficiently and accurately handle this complex transaction. The title company will do an abstract of title which means searching the real estate records in the county where that particular piece of property is located. An abstract will (1) determine the legal owner of the property; (2) reveal any mortgages, liens, judgments, or unpaid taxes that will have to be satisfied before the property is conveyed; and (3) detail any existing easements, restrictions, or leases that affect the property. After the abstract is completed, the title company will issue a title opinion letter, or if a title insurance policy is to be issued on the property, it will prepare a Commitment of Title Insurance to the lender and/or the prospective buyer. The title opinion letter and the title insurance commitment will each set forth all things t
Buying or selling a home is, for most people, the largest financial endeavor they will ever undertake. You need to secure the professional services of a title company to efficiently and accurately handle this complex transaction. The title company will do an abstract of title which means searching the real estate records in the county where that particular piece of property is located. An abstract will (1) determine the legal owner of the property; (2) reveal any mortgages, liens, judgments, or unpaid taxes that will have to be satisfied before the property is conveyed; and (3) detail any existing easements, restrictions, or leases that affect the property. After the abstract is completed, the title company will prepare a Commitment of Title Insurance to the lender and/or the prospective buyer. The title insurance commitment will set forth all things that need to be completed and any problems that need to be corrected before the purchaser can receive good title. The title insurance com
Title companies are business entities that focus on the examination of the quality of titles or deeds associated with property holdings. In many instances, the title company will also function as the means of insuring the property during the process of a sale. While the title company usually works closely with the current owner of the property, it is not unusual for the company to work directly with real estate agencies and professionals to establish the legality of title claims and thus clear the way for a sale. When taking on an investigation of a given property, the title company first researches the claim of ownership associated with the property. This includes reviewing the current title or deed to ensure there are no defects or questionable factors in the actual construction of the documentation. Once the propriety of the title is established, the title company takes steps to ensure there are no current liens on the property other than those already acknowledged by the owner. Fai
