When purchasing a home, part of your costs will be applied to the costs associated with the title company. The title company plays a critical role in a successful transaction and therefore the fees to a title company are unavoidable. You can find your way to a title company through a variety of avenues including your own accord or with the help of a real estate agency. Either way, the work the title company charged with handling your purchase or sale can prevent a whole host of costly and potentially devastating pitfalls of the real estate business.
1. Title Search
Before purchasing a home, your title company researches the property to ensure it is able to be sold fully. Without an accurate search, the sale could be met with a variety of hurdles or even matters that prevent the sale altogether. A title company is able to search the title of the property to ensure there are no liens on the property or any other conditions to the property or land that would make a completed transaction impossible.
2. Title Report
After searching the title to uncover any matters that would impede or preclude the sale of the property, the title company is responsible for crafting a report to be used to declare the property able to be sold fully. If there are issues preventing the sale, the title company should find them and detail the matters preventing the sale within the report. The title company’s report is the official statement to the buyer that all matters are satisfactory and the sale can be sanctioned.
Armed with the title report from the title company, a buyer still has the option to purchase title insurance. Title insurance is obtained to inoculate the buyer from any snafus that could result from an incomplete or incompetent title search. In any case where a problem is missed by the title company during its search, revelation of the issue could lead to the forfeiture of fees and other expenses paid by the buyer. Title insurance, obtained with the title report as the corresponding document, relieves the buyer from the penalties that would result from a flawed title report and halted sale.
4. Disbursement of Monies
The closing costs and down payment are handled by the title company to be disbursed upon completion of the transaction. As an impartial body, the title company holds the funds paid for closing and down payment until the sale is closed.