A title company plays key roles when it comes to real estate transactions. It acts as an agent of parties such as buyers, sellers, and insurance companies within the realms of real estate. A title company has various roles and duties when it comes to real estates including:
1. Title Review
A title company should search all public records that are related to a particular property in question. A title search is able to inform interested parties of the condition and status pertaining to a property. This information is generally provided to all parties as a preliminary report.
Information such as any legal actions and impediments that are involved in relation to a property are also provided for by a title company. Information in regards to foreclosures may also be provided for here. Title review may help identify the owner of property thereby putting to rest any misinformation.
2. Closing Agent
A title company can act as a closing agent during transactions. It should work closely with all parties during this process. Agents of the title company should ensure that all parties are in agreement and have signed closing documents.
The company should also ensure that all payments are received and distributed as agreed upon. These documents need to be recorded with the land records office within the county.
3. Escrow Officer
An escrow officer posses money or documents that are part of the real estate transactions. This is in accordance with the instructions given by the parties. Instructions may include the transfer of funds and title deeds to quoted parties after written instructions are availed to the title company. This prevents any fraudulent activities where one party may end up losing his or her property or funds.
4. Insurance Issuer
A title company is able to issue you with title insurance. This is done on behalf of a title insurance company. A title company, in any case, is not an insurance company but acts as an independent agent for you.
The company receives commissions for the issuance of title policies. Premiums are paid to the actual insurance firm. Risks under the title policy are hereby transferred to the insurance company. A title company speeds up the process of acquiring title insurance.
A title company is very crucial when it comes to real estate transactions. Such a company facilitates smooth dealings and closing of real estate transactions. Parties can have peace of mind when a title company is involved. It carries out due diligence to ensure the needs of involved parties are met.