Role of the real estate title company

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I am in the initial stage of my mortgage formalities. What role does the real estate title company plays? Do I require them?

blue · Posted: Thu Dec 15, 2005 12:50 pm Post subject:

Title Company helps you with its technical knowledge and experience to assure a smooth closing. It follows the instruction of both buyer and seller and keeps a track of all the transactions with accuracy.

It helps you to avoid any legal problems in future by identifying and sorting it out at the beginning itself.

Samantha · Posted: Thu Dec 15, 2005 2:47 pm Post subject:

Hi Jen,

Real Estate Title Company is a third party who helps both buyers and sellers to have a smooth closing in the process.

Buying and selling a home has some critical processes and need professional and experience in handling to avoid any disputes later on.

Title Company has the experienced and skilled professionals to take care of this process with accuracy.

You have the right to ask for a Title company of your choice at the time of contract. The Title Company ensures verification of past ownership of the land, showing liens and rights of others on the property.

As soon as the title order is placed the process for search, examination and disclosure begins. The company goes through the public land records to check information regarding the title of the property being purchased.

Some of the major points checked are -

Whether the contract seller is the legal owner of the property
Whether there is any type of lien to be satisfied before the title will be clear
Whether there is any existing restrictions which may disturb your rights on the property
Whether property taxes are cleared

When these things are clear they are recorded in a "Commitment of Title Insurance" issued to the lender and the copies are handed over to the buyer, seller realtors and attorneys involved.

The Title Company keeps a track of the procedures performed during the contract period and the final settlement. During the closing time the legal documents are sent to the Escrow Officer of the title company who compiles all the lender charges, miscellaneous fees, title company fees and other closing costs to bring out the total cost and records it in the Final Settlement Statement.

The buyer will be informed of the cost that is required to be paid by him at the closing time. It also takes responsibility of collecting all the funds and proper disbursement of the same.

The real estate title company checks that all the documents are properly recorded, the lender's requirements are fulfilled, all outstanding liens fully paid and the title policies prepared.

So the real estate title company takes care for the successful completion of the complicated procedures and thus has an important involvement in buying as well as selling process.

I hope this will make you understand the importance of Title Company.

God bless you.

For MortgageFit,
Samantha

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