What is a Title Company Responsible for?
Sun Nov 4, 2018 on Blog
Have you been advised to hire the services of a title company, but are wondering how they can be of help to you? A Title Company plays a crucial role in the real estate industry. Unfortunately, most people don’t know how crucial that role is. Most of the time, they act as an agent for the buyer, the seller and the insurance company, and take part in the transaction process. In this article, we discuss a title company’s function and responsibilities in more detail.
What are the responsibilities of a Title Company?
- They conduct title searches.
One of the key roles of a title company is to conduct title searches. In real estate, title actually refers to equitable interest and numerous legal rights that pertain to a particular piece of property. A title search is a crucial process that helps provide valuable information about a property that is about to be sold or bought. A title search will help to disclose existing lines of credit, judgments, special assessment, and unpaid taxes, and other issues. The title search will also help to uncover any leases, easements or any other restriction that should be a concern to the buyer. Once the title company has successfully conducted a title search, it will issue a detailed report of their findings to the parties involved in the sale and purchase.
- They issue Title insurance policies.
If a title search is conducted properly, then the buyer should have absolutely nothing to worry when they close the deal. However, regardless of how thoroughly the search is performed, it is possible to miss something. Some of hidden problems that can arise later include things like defective deeds, land mineral rights that were previously unknown, forgotten wills, invalid court proceeding and undisclosed heirs. Title insurance is crucial because it helps to protect the buyer against unforeseen issues that may arise later. It also helps to protect buyers from fraudulent ownership claims.
- They act as closing agent.
The title company usually act an agent of each party involved in the transaction process. As a result, they are closing agents. One of their main role is to ensure that all parties involved in the transaction process sign valid closing documents. Once the deal is closed, they usually record all documents and present them to county’s recorder’s office. The closing process is quite complicated, especially for mortgages. Many signatures, forms and documents are needed. The title company will help ease the process by acting as the closing agent. They will act as the intermediary between the buyer and seller as well as ensure that all necessary documentation is served, signed and recorded.
- They serve as escrow office.
If you hire the services of a title company, then they will most likely act as your escrow officer. This means that they will be responsible for handling all funds including down payment and closing costs. They will ensure that all funds are paid and disbursed properly. They will work closely with all parties involved as per the instructions provided to them.
Weston Title & Escrow Inc
2500 Weston Rd Ste 209, Weston, FL 33331