When you are buying a home, it can be head to understand why there are so many people involved, and what exactly each one is doing. Your home inspector has clear roles, a title company may seem to fill a more mysterious role. However, your title company plays a crucial role in the process of closing your home and protecting you from unforeseen legal issues.
So what exactly is a title company? Title insurance companies help to ensure that component of your real transactions are legal and problem-free. Through research, insurance and careful coordination, they make sure that the title to a piece of property is transferred legally and correctly from the seller to the buyer.
In this article, we will discuss what does Title Insurace Company do in great detail.
- Conduct a Title Search
In the real estate industry, the Title refers to numerous legal rights and equitable interest pertaining to a particular parcel of property. The title search process provides insight into the history of the rights and interests to your potential home such as who brought the property, who sold the property and the dates of the transaction. It also determines if there are any other latent defects to the title such as lines of credit, judgements demands etc.
- Serve an Escrow Officer and Closing Agent
National default title services serve as your escrow officer. Correct handling of your pre-closing escrow account includes making sure that all funds, including cost and down payments, will be paid and properly disbursed.
- Title Insurance Issuer
If a title search was done correctly, there should be no issues with you taking tile of your new home. Despite thorough title search conducted prior to settlement, it is practically impossible to ensure a title is clear of all hidden problems resulting from the issues like:
- Undisclosed Heir
- Forgotten Wills
- Invalid Court Proceedings
- Defective Deeds
Title issues are common, but when they do occur they can be significant enough to cost you your home. It is one of the biggest investment of your life and it deserves the best protection you can provide. Check out here to learn why choosing the right title agent will make or break your sale.