What does a title company do? If you have ever bought or sold a house, or are currently in the process, you know it is not as simple as signing a couple of documents and exchanging money. There is a lot of other behind the scenes work that takes place and that is where a title company comes in.
In a broad scope, a title company is responsible for making sure the real estate title is legitimate and then will guarantee the title is valid through title insurance. There are some other additional responsibilities a title company can be responsible for as well. Here’s what you need to know.
A title company orchestrates the legal transfer of property rights
between the seller and the buyer.
Verifying and Validating A Title
The primary responsibility of a title company is the transferring of property rights from one owner to the next. A title company, like True Concept Title, will verify that the title to the real estate property that is being sold is legitimately given to the new homebuyer.
There are many reasons why a title may not be legitimate and it is up to the title company to make sure that the seller actually has the rights to sell the real estate. During a title search the title company will look for:
- Prior mortgages
- Prior unpaid taxes
- Court judgments
- Fraudulent transfers
- Unknown heirs
- Restrictions on the property such as easements and right-of-ways
Protection Through Title Insurance
Without a legitimate title, the new buyer could have unimaginable legal issues. This is why a title company will provide title insurance after verifying the title. Title insurance acts as a guarantee and protects the owner (or lender) if someone tries to question or claim legal ownership of the real estate. Title insurance not only protects borrowers against recorded and unrecorded liens that could attach to a property, but may also provide savings for future refinances and/or sales of a property. Additionally, title insurance can protect the owner and/or their heirs against future litigation, from a prior owned property found to have clouds on title, for years after a property sale.
Other Services Our Title Company Offers
Title companies can assist with many additional services that make selling or buying a home more efficient, effective, and secure.
Maintaining Escrow Accounts
Title companies oftentimes manage and maintain escrow accounts on behalf of the sellers and buyers. An escrow account contains the funds needed to close on the home. They will ensure that the money is only being used for settlement and closing costs.
All parties rely on the title company to be honest and impartial when it comes to handling monies. We offer full escrow processing services through our centralized escrow division. Our title company coordinates order entry, escrow, file funding, and disbursement for all loan types nationwide. Real estate professionals appreciate our centralized production center can also manage:
• Payoff Ordering
• Loan Document Processing
• Loan Disbursements
This service can be used in conjunction with full loan processing, or independently. When you choose this level of support from True Concept Title, your property reports include:
- Current Vesting Information
- Legal Description
- Parcel Number
- Tax Information
- Open Mortgages/Judgments / Liens
- Recorded Bankruptcy Proceeding Information
Some of our property reports may include an abstract of title or a title opinion. These two documents focus on researching the history of the property, and if any issues arise during the research, they will need to be taken care of before a buyer can get title insurance.
An abstract of title is a good source for determining the history of the property. It outlines the ownership of the property by looking at when that particular property has been sold as well as looking at records that may show any applicable inheritance, court litigation, and/or tax sales.
After the abstract of title is complete, the title company will then write an opinion of title. This document states that the title company thinks the seller has a valid title to the property and they feel comfortable insuring the title through title insurance.
True Concept Title develops customized processing that meets your business needs. This includes:
- Quick Turnaround Times
- Centralized Mortgage Processing, Available in all 50 states
- Customized Processing Options
- 24-7/365 Access to Files
Conducting the Closing
At the closing, a settlement agent from the title company will conduct the formal closing on the real estate property. The settlement agent will bring all the necessary documentation, explain it to the parties, collect closing costs, and distribute monies.
We offer clients and partners a way to close loans quickly. More importantly, we build our processes and services around your needs. From attorney services to notarizing documents and document processing to mobile closings, our title and escrow experts can help with a successful closing experience.
After the closing, the title company will ensure the new titles, deeds, and other documents are filed with the appropriate entities.
Related > Convenient Mobile Closings
True Concept Title is Your One-Stop-Shop
A title company plays a large role when a property seller and a buyer enter into a formal purchase agreement and at True Concept Title we want to be there every step of the way. Our job is to cater and build our title and escrow services around your customers’ needs.
At True Concept Title, we maintain a national presence, as well as local to the Tampa Bay area. We work with many mortgage, real estate, and legal partners across the country. We are ready to assist you in developing your customer relationships, no matter where they are located. Contact us at 813-263-7168 to get started today!