Title insurance companies are one of the many institutions that home buyers and sellers encounter during each transaction. These organizations can also represent insurance companies, lenders, and any other parties involved in the sale. They take on a variety of tasks to help manage a smooth sale. Title agents, who help facilitate the transaction, can be called upon to do a title search, act as the escrow agent, ensure that a seller is legitimate, and more, allowing everyone involved to protect their interests and complete the sale in accordance with local regulations. Here’s a closer look at what to expect from a title insurance company and how your title agent can help you protect your investments.
When an examiner conducts a title search, they acquire information about the history of the home that determines whether there are any problems with the title, such as unpaid taxes or liens and other legal concerns. The agent will then provide a comprehensive report on the matter, a binder or commitment of the title that can help buyers, sellers and lenders identify and solve any issues with the sale before finalizing the transaction.
During the title search process, title agents will also determine the legitimacy of the seller. By understanding the history of the property in question, the title agent can ensure that the seller has full legal rights to sell the property. In some cases, the seller may not have these rights because undisclosed heirs of the previous owner exist, or because there are problems with the title that prevent them from being able to sell the home. Identifying these issues before the sale is completed helps the buyer avoid the possibility of losing their home or having to deal with extensive legal proceedings to keep it in the event that another entity has a claim to the property.
Escrow agents are responsible for safeguarding money and important documents used in real estate transactions and distributing them at the appropriate times. Title companies can fulfill this role by managing all of the cash and documentation required, such as signed deeds and inspection fees, giving buyers, sellers, and lenders one place in which to store and access these resources rather than managing them themselves. Title companies will release money and documents as instructed by the buyer and seller in written documents, such as contracts, to ensure that everyone understands when and how distribution will occur.
After establishing the validity of both the title and the seller, a title agent can issue title insurance. This protects the new owner from any ownership-related concerns that may arise after they purchase the house. Unlike other types of insurance, title insurance requires the payment of a one-time premium. Some lenders will not issue a mortgage if the buyer has not purchased title insurance. The title agent can also provide lender’s title insurance, which helps ensure that the mortgage company’s loan will not be harmed in the event of an ownership dispute.
Most lenders ask for a map of the property to determine its boundaries, location, and other important details that may affect the loan offered. After the buyer approves of a survey, the title company can arrange for one to take place and review it for accuracy and any potential new concerns; if there are issues after the survey, the buyer and lender will be notified. The buyer also receives a copy of the survey on the settlement date to keep for their records.
As a closing agent, title companies will oversee the details of each transaction on behalf of both the buyer and seller. This means that they will be responsible for obtaining signatures and payments and coordinating the distribution and collection of final documents. The title agent can then record all documents with the appropriate offices to make the sale legal and final. This gives all parties involved an easy way to verify that all of the necessary steps have been completed before finalizing the sale, rather than having to manage these details themselves.
Finding a Title Agent
Speak to Mathis Title Company for more information or to schedule an appointment with a title insurance agent. Founder Robin Mathis has extensive experience in the legal and real estate industries, allowing her to conduct thorough and accurate assessments of a variety of real-estate related tasks. She and her team can assist with closings, settlements, mechanics liens, mortgage negotiations, and contract review and preparation in addition to title insurance and title searches.