A title company is a business that manages the lending and mortgage process for a property. It is difficult for many people to understand what the duties of a title company entail. However, there are several vital services offered by this type of business. Here are services provided by title companies.
To search titles, an agent would submit an inquiry request with the county office where they want to conduct their search. The county office will then search through their records. The investigation aims to find out if there are any liens on the property. This includes unpaid back taxes or federal loans.
Insurance is purchased to protect the lender, buyer, and attorney against losses that may occur during a closing. This coverage takes effect once the underwriter finds no liens on the property. Title insurance is also used to protect a homeowner refinancing their home loan against fraud or errors related to their title.
A title commitment has a complete list of details about your home’s title. This includes all outstanding and current loans against it. It will also include the purchase agreement, covenants, conditions and restrictions (CC&Rs), deed of trust, and other documents.
A title closing is a process that transfers ownership to a buyer. There are usually two types of title closings in a title company. The full-service closing and a limited-service closing. A full-service closing will contain several people and agents involved in the closing process. On the other hand, a limited-service closing is only made up of the buyer, seller, and real estate agent/broker.
Title companies review and verify property ownership. They also record your property rights to clear who owns the property. It is, therefore, crucial to hire a title company when embarking on a real estate investment.