What is Title?
Title is the proof that a person or company has the right to own and use a property. Title most often takes the form of a Deed but the right to a property can take many other forms too. It is possible that someone other than the current owner has a legal right to a property. A claim to your title can result in lost money and even the loss of your home.
What is a Title Search?
A title search is a review of public records at the county courthouse to determine the status of a property including ownership rights, liens, judgments, and use restrictions.
What kinds of problems can a title search reveal?
Some examples are unpaid taxes, unsatisfied mortgages, judgments against the buyer and seller, bankruptcies and restrictions on the use of the land.
Are there any problems that a title search cannot reveal?
Fraud, mental incompetence, clerical errors, environmental hazards and defects in the buildings on the property are examples of the hidden history that a title search may not reveal. Title insurance is needed to protect against some such defects coming to light after you have purchased your home. Home Inspections will reveal defects such as construction problems or environmental hazards.
What are the title company’s responsibilities in addition to conducting the title search?
In addition to correcting any minor title problems (i.e. collecting for due taxes and mortgages), the title company will provide a title commitment and insurance coverage. If more major defects are found, we provide the seller with help and guidance in clearing those problems. We will work with the lender providing them necessary information and ensuring their detailed closing instructions are followed to the letter. We coordinate with the real estate agents, mortgage broker, lender, buyers and sellers to make sure all tasks are complete and ready for settlement. Settlement is conducted by our closer. The closer is responsible for making sure all paperwork is completed correctly, notarized and delivered to appropriate parties and locations. Our escrow accounts serve as a neutral exchange for all funds in the transaction, which makes us responsible for safeguarding their security and ensuring they a disbursed to the proper individuals and companies at the correct time. After settlement, we must return the loan documents to the lender, record the deed and mortgage at the county courthouse, prepare the title insurance policies and return the policies with the recorded documents to the new owners and lender.
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