The Role of Title Company
Article by Katrina Marie Santes
Buying a house is one of the biggest steps you can make in your life. If you make the purchase without enough funds, it’s like almost going on a suicide.
With such huge expenditure like this, you need to be prepared. You need to secure your interest. You also need to make sure that when you buy the property, it is legally yours to keep and another person can run after it (considering the amount of money you have shelled out).
So when you buy a house, the involvement of the title company is very important. When it comes to securing your legal right to become the new owner of the property, they can help out. In this article, you will learn more about their roles and why they should be part of the home buying transaction.
Their Roles
The title company’s primary role is to perform a research. The purpose of which is to get an in-depth information about the property. They will create an abstract of title which contains the details about the legal owner, current liens, mortgages, tax payables and easements, as well as restrictions existing against the property.
They have to collate this information so that they can create a title opinion letter. They will also be the ones who will issue that commitment of title insurance. Both of these documents will commence all things that are required to be done for the title to be declared good or clean.
The title company can also be the appointed closing agent. As a closing agent, their representative would be in charge of the preparation of the HUD-1 settlement form. They will also be in-charge of collection of all legal documents and have them recorded to become official. But before that, they ensure that all documents would be signed by right person.
They will also do the collection of payments from the lender and buyer. After that, they will disburse the money to the right parties. All closing fees will be paid and the seller would receive their share.
Importance to Sale of Property
With the activities performed by the title company, the transfer of title would be done legally. Hence, the buyer would be protected from any hazards that could cause troubles to them. With the abstract of title, the buyer and the lender could trace the chain of events that lead to the sale of the property. They would also learn if the seller has a saleable interest over the property. With the title rendered clean and good, the parties could proceed with sale. And even if there will be problems in the future, the lenders and the buyers are already insured through the title insurance issued by them.
The title company has a very important role for the completion of sale of property. They will work hand in hand with other real estate professionals. Whether assigned as the closing agent or not, they will be there until the sale is closed. They also ensure that everything will be done smoothly by assuring one aspect of the sale to be legally done.
Find more real estate tips in Chandler Homes and Chandler Foreclosed Real Estate. Article Source: http://EzineArticles.com/?expert=Katrina_Marie_Santes
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