Title companies usually play a large and important role when it comes to the formal sale closing in real estate.
There are a lot of factors which have to be taken into consideration when buying and selling real estate. It must not be done without preparation and exhaustive researches as important financial and legal matters are being handled.
In these cases where there are a lot to be taken care of, the services of a title company can offer invaluable help and relief, as well as peace of mind that you are protected in your transactions.
In order to understand what title companies do, let us first discuss what a title is. A title is a document which confirms that a person or a company is the true owner of a property.
Title Company Responsibilities
Companies that look for title deeds as mentioned are called title companies. Title companies are responsible for examining the titles thoroughly in order to validate its authenticity. As such, it also tries to clear out all legal and financial issues that are related to the property that may become a hindrance for the new property owner. Another important task for title companies is to facilitate a smooth closing for the real estate deal.
The first and primary responsibility of title companies is to confirm and certify whether the seller of the property is the true owner or not. Aside from the ownership details, title companies also look for possession details. This means that title research is very crucial in transactions as false claims can and will affect the deal.
The next step for title companies is finding out the legal and financial upheavals that are related to the property. These may be in the form of pending litigations, back taxes, first and second mortgages, debt, mechanical liens and other matters of grave concern. Should there be any of these left not taken care of, the buyer inherits them when they become the new owner of the property and when the deal closes. Therefore, not hiring a title company may lead to these things being left hanging.
In order to close the deal properly, title companies must help in the closing through reading documents and completing those that have to be signed. A good title company lets you understand all the intricate and detailed terms and phrases and ultimately makes the process easier for you and for the other party concerned. This may prove invaluable as in can offer you the peace of mind to help you enjoy your newfound landowner status or your success in closing a deal with the buyer of the property you are selling.