What is a Title Company?

The title company will do an “Abstract of Title or Title Search”, which means searching the real estate records in the county which the property is located. An abstract will (1) determine the legal owner of the property, (2) identify any open mortgages, judgments, liens and unpaid taxes; and (3) detail any restrictions, easements or leases that affect the property. It is our job to examine the title and clear any liens or claims on the property so that the new buyer receives “clear” title to the new property.

After the abstract is complete, the title company will issue an insurance commitment for the lender’s title insurance policy and issue both owner’s and lender’s coverage. There are two types of Title Insurance: Lenders, which is required by the mortgage company, and protects the lender’s investment in the property; and Owner’s, which may be purchased at settlement for the advantage of the new owner. We strongly suggest that the buyers purchase an owner’s title insurance policy, which protects them against any hidden risks against the property. For more information on title insurance, please contact us.

Most lenders require a survey. With the buyer’s authorization the title company will order a house location survey. Once the survey is returned, we will review for any potential problems. Should any problems come up, we will notify all parties immediately.

The reason of the closing is to sign the necessary documents needed to convey title and secure the lender. We explain thoroughly explain the costs to each party at closing. The “settlement statement” and/or “HUD-1″ includes the lender’s charges, title company fees, county/state recording costs, mortgage payoffs and include the pro-rations for taxes and HOA/Condo (if applicable), and any other costs included in the transaction.

Once closing is complete, the title company sends the legal documents (Deed, Mortgage, Assignments, etc.) to the appropriate county. New owners will receive their recorded deed and owner’s title insurance policy (if purchased) and this should be kept in a secure place. The lender will receive their original documents back along with the lender’s title insurance policy. Once the loan is paid in full, the lender will “release” the lien on the property.