Buying a home is a long process with plenty of opportunities for legal troubles. While some of these can be easily avoided by carefully reviewing contracts and asking the right questions, there are some that new homebuyers may not even realize exist. A title company can help you avoid these issues. But exactly what is a title company responsible for? In short, a title company helps you review documents, protect your investment, and finalize the purchase of your home with no extra stress. Here are a few services you can expect your title company to provide when you decide to buy a house.
Title companies primarily focus, of course, on titles. However, they also assist with the deed to the property in question. Buyers and sellers must sign a deed showing that the property has a new owner, and a title company’s representative will notarize those signatures. This person will also submit the deed to the county recorder’s office, where the buyer will then become the official owner of the property. If you are required to sign a Deed of Trust, in which the property is held as security until a mortgage loan is repaid, the title company will become the trustee that holds legal title to the property until that time.
A title company has the resources to carefully research and review the title to your new property. The company can scour public records to identify any problems with the status and condition of the title, including any legal concerns relating to the transfer of the title. The title company will provide both the buyer and seller with information about the title in a preliminary title report, which can then be used to secure title insurance. This important step in the closing process helps avoid delays and expensive legal fees that could result from purchasing a property with an unsound title.
Most mortgage companies require that you obtain title insurance prior to agreeing to a loan. Title insurance protects the lender if there are any prior claims on the title to your home, such as mechanics liens, undisclosed heirs to the property, and any other roadblocks that would make it impossible for you to legally take ownership of the house. Title insurance also allows the lender to foreclose on the property if you default on the mortgage. Securing title insurance is important, because it can help you get a good mortgage loan and also close the sale more quickly.
While you don’t need the help of a title company to close the sale of your home, the company can make the process faster and easier. Your representative will ensure that everyone has submitted the proper documents, review closing instructions, and conduct closing processes according to state and federal laws. The title company representative will also submit documents as necessary to ensure they are properly filed in the relevant property records. Using a title company during your closing process means that the process will be completed accurately and that the sale will be legally finalized.
With each service, title companies provide both buyers and sellers with legal protections. The research conducted informs all parties involved of any problems with the property’s title, helping them avoid costly litigation in the future. The company can also identify legal concerns during negotiations, contract review, and closing procedures, then work to remedy them and reach a satisfactory conclusion for all. In addition, title insurance for both lenders and buyers helps protect each party’s investment in the home. Title companies help everyone complete the process in a legal, efficient manner.
Contract Review and Preparation
Sometimes it helps to have another set of eyes on a contract, or legal assistance in drawing one up from scratch if you find yourself in a for sale by owner situation. A title company, particularly one that has a legal background, can help you establish a contract that protects your interests while also providing the seller with the protections and privileges they require to make a final sale. This assistance can satisfy both parties that they are receiving a strong and legally sound deal on the property.
Your Northern Virginia Title Company
Speak to Mathis Title Company for more information about the home buying process and how a title company can assist you. Robin Mathis has years of experience in both the legal and real estate fields, including both commercial and private real estate deals. This unique combination of knowledge helps her provide clients with in-depth, comprehensive services during their home buying process. Mathis personally oversee each closing herself to give clients personalized attention and support. The company can provide title insurance, review and prepare contracts, assist with removing mechanics liens, deal with refinancing, and conduct settlements for both buyers and sellers of properties.