Learn About A Title Closing Company
Posted on: 1 June 2022
When you are going to be buying or selling a home, you want to learn about the process so you know what to expect. One of the things that you should learn more about is title closing companies, more commonly simply called, title companies. Here is more information on title companies and the role they play in real estate transactions:
Title companies offer protection
One of the first things to understand about title companies is they are there to protect both parties, the buyer and the seller. The title company is hired to act as a neutral third party who will tend to the research on the property's title to ensure it is free and clear. Without a title company, there may be things that would come up and cause problems with the transaction, such as there being someone else with a legal interest in the property.
Title companies look for many things
When the title company researches the title, there are many things they will be looking for. Mainly, they will be making sure the title is free and clear. They do this by checking into things like possible liens on the property, unpaid taxes, unpaid HOA dues, court proceedings, heirs with a possible interest, land mineral rights, and much more. Each of these things could potentially be problematic. Having the title company do all this research and deem the title as free and clear is very important because it means the property sale can go through without a hitch.
The title company provides specific items at the closing
When the closing time comes, the title closing company will present all the required documentation. They will make sure all parties have a clear understanding of what the documentation is stating. The title company will also be the one responsible for collecting the money for the closing costs and distributing the money.
At the closing, the title closing company will also collect all necessary signatures for the contract and loan. Many times, they will also take on the role of the escrow agent. As the acting escrow agent, they will also collect the other payments, such as the payment for title insurance, property taxes, homeowner's insurance, etc. They will then be responsible for ensuring that money is distributed accordingly.
Conclusion
Now that you have a better understanding of the role the title closing company plays during a real estate transaction, you will likely have much more respect for their position. They are so important to the process due to the protection they offer to both parties.
Contact a title closing company for more information.
Share