The role of a title company is to coordinate the interests of all parties to a real estate transaction including the buyers, sellers, mortgage lender, and the real estate agents, and to make sure all requirements for settlement are fully satisfied.
The first step is to research the title to the property through a “Title Abstract”. The title abstract provides a history of the property and its ownership. It will also identify any liens, defects or obstacles on title. It is our job to examine the title and clear any liens or claims on the property so that the new buyer receives clear and marketable title to their new property.
Most lenders require a house location drawing of the property, also referred to as a Survey. With the buyer’s authorization, we will order a survey and review for any potential problems. Should any issues arise on the survey, we will notify the real estate agent, lender and the new buyer immediately. The survey will be given to the buyer at settlement.
We will also verify with the local or state taxing authority that the property taxes have been paid. Similarly, we check with the water company and the Homeowners Association or Condominium to confirm that all payments are current.
Next, we prepare the insurance commitment for the lender’s Title Insurance Policy and issue both owner’s and lender’s coverage. The insurance policy provides protection from financial loss as well as payment of legal costs necessary to clear such claims. For more information on title insurance, please contact us.
We also coordinate with the mortgage lender to receive the Loan Documents for Closing. Once received in our office, we review all forms and comply with the lender requirements for closing. With these documents, we are then able to complete the HUD-1 Settlement Statement. This settlement statement is one of the most important documents to sign, and we will review it in detail at closing. We also prepare the Deed and other documents necessary to comply with State and Federal laws.
At Closing, all documents will be explained to all parties prior to signing. Settlement will last approximately one hour. We will take our time to make sure everyone is comfortable with the documents prior to signing and answer any questions that arise. After closing, we disburse all the monies collected at settlement and pay the vendors such as the termite company and surveyor. We also pay off and release the existing mortgages on the property. We then prepare the loan documents to be returned to the lender.
And finally, it is our responsibility to make sure all documents are properly Recorded in the Courthouse such as the new Deed, mortgage and release of any existing liens on the property. We value the opportunity to play such an important role in the purchase and sale of a home. You can be sure that we will provide professional quality services in a reliable and efficient manner.