When buying or selling a home, you want the process to go as smoothly as possible. However, you also want to ensure that everything is done correctly from the beginning to the end. Luckily, a title company can help!
So what exactly is a title company, and what does a title company do?
What is a Title Company?
A title company is a third party that works on behalf of the lender and the buyer to ensure a smooth and steady process. You hire these companies to research the title of the home you’re buying.
Hiring a title company is essential for a few reasons. For example, they provide title insurance and thoroughly research the title records. They are ensuring that the buyer is purchasing the entire property and there aren’t any pending claims. No pending claims mean that there’s no chance of someone coming along years later wanting to claim their portion of the property.
What Does a Title Company Do?
The title company reviews and researches the title to the property in question. They also issue title insurance policies (one for the buyer and one for the lender), act as a third party at closing, and file paperwork.
What Role Does a Title Company Play During the Closing Process?
Not only are there several details involved in buying and selling a home or property, but there are also several parties involved. Because of this, title companies oversee the closing process from start to finish.
From managing escrow accounts to managing the lender documentation, title companies help avoid disputes over taxes and unpaid bills. Plus, they have to verify the status of all property taxes and make sure the seller is legitimate and has the right to sell the home.
Additionally, they order a municipal lien search from the city to determine any open permits, code violations, or delinquent utility accounts against the property.
Any of these details listed above could become a problem after you purchase the home. It’s best to be confident that the property is in good standing and that the title is clean. Title companies also ensure that the inspection is good and that any necessary repairs are complete.
How to Choose a Title Company
Listed below are just a few things to consider when choosing a title company:
- The reputation of the company
- Professional experience
- Customer service
It’s always advisable to ask questions like how they actively protect your money against fraud, conduct processes, and how many transactions they have handled similar to your situation.
Title company costs may be a factor you consider when choosing a title company. Make sure you choose an affordable option by knowing how much working with a title company costs.
Work with a Recommended Title Company
After buying a home, it’s important to know what role a title company plays and how to choose a reputable company.
When buying or selling a home, the last thing you want to happen is to have complications arise that hinder the sale or delay the process. A title company isn’t a requirement, but there’s still a need to ensure the title is written correctly, executed, and lawful.
There’s no replacing the extra peace of mind knowing that everything was handled correctly, and the buyer is insured against any possible issues that could arise. If you’re searching for a reliable title company to work with, work with a lender on closing requirements. At Loan Compass we put your priorities first and will find a title company with your best interest in mind.
Get in touch today for title company recommendations.