LET'S TALK TITLE
It is often said that a real estate transaction resembles a 3-ring circus. You might even say that the REALTOR ® serves as the ringmaster under the sometimes frenzied big top, and works diligently behind the scenes to choreograph the dizzying details and multiple moving parts! One of the third parties that realtors work very closely with is the title company. So, what exactly does the title company do?
IMPORTANT JOB - NEUTRAL PARTY
1. Perform the Title Search: The “title” is a collective term for all of your legal rights to own, use, and dispose of (ie. sell) any real estate property. A clear title guarantees that your ownership is legitimate, and that no one else can stake a claim to the property you are trying to sell. During the title search, it's not uncommon to uncover contractor liens, back due child support, or outstanding taxes due that must be resolved prior to closing.
2. Issue Title Insurance to Buyers: The title company also guarantees via the issuance of a "title policy" that the new owner (buyer) is protected against any future claims of property ownership. This insurance policy gives peace of mind to the buyer that no one can lay claim to their property for as long as they own it.
3. Maintain Escrow Account: The duty here is to safeguard money and important documents related to the transaction for the parties involved. It's important to note that the title company is a completely neutral 3rd party who works neither for the buyer or seller.
4. Close the Transaction: This process involves drafting all of the final paperwork and documentation, getting signatures on said documents, ensuring the title successfully passes from seller to buyer, & overseeing the disbursement of funds from escrow.
The title company is tasked with critical responsibilities in the real estate transaction. Realtors interface with them daily, so you can sit back and enjoy the show!