Title Resources Inc. is a small and friendly title company that will keep you informed through every step of the process.
In the United States, a title company is a third-party organization that works with both the lender and the buyer to research and insure the title of the property being purchased. The primary goal of a title company is to ensure that the title is free of any encumbrances or defects that could cause issues for the buyer or lender down the line.
Title companies have been around in the US since the late 1800s, when the growth of the real estate market created a need for a more efficient way to handle property transactions. Initially, title companies were responsible for researching property ownership and maintaining a record of property transfers. However, as the industry evolved, title companies began providing a more comprehensive range of services, including title insurance, escrow management, and closing services.
Real estate transactions are complex, and even seemingly small issues with the title can cause major problems down the line. For example, if there is a lien on the property, the buyer could be responsible for paying off that lien even if they were not aware of it at the time of purchase. Title companies help to prevent these types of issues by thoroughly researching the property's ownership history and providing insurance to protect both the buyer and the lender from any liability.
A house title, also known as a property title or real estate title, is a legal document that shows who owns a particular property. It contains information about the property's ownership history, any liens or encumbrances on the property, and the legal description of the property. When you purchase a home, you will receive a house title that shows you are the new owner.
One of the most important services provided by a title company is a Title Exam. Title companies conduct a range of searches to ensure the property's ownership record is accurate and free of any encumbrances. They research the "chain of title," which is the property's ownership history, ensuring that you are buying it from the rightful owner. This involves a thorough examination of the property's ownership history, including all previous sales and transfers. The goal is to ensure that the current seller has a clear and marketable title to the property, which means that there are no liens or encumbrances that could affect the buyer's ownership rights.
In addition to title research, a property survey is often conducted to ensure that the property boundaries are clearly defined and accurate. This helps to prevent any disputes with neighbors over property lines and ensures that the buyer knows exactly what they are purchasing.
Once the title research is complete, the title company will provide a report called a title commitment. This document outlines the property's ownership history and any issues that were found during the research process. The title company will also determine who holds the title to the property, which is typically the seller but can sometimes be more complicated in cases where the property has changed hands multiple times.
The closing process is the final step in a real estate transaction, where all necessary paperwork is signed, and ownership of the property is officially transferred from the seller to the buyer. Title companies often play a crucial role in the closing process, providing escrow services to hold and manage funds until all necessary conditions have been met.
Funding is another crucial aspect of the real estate transaction, and title companies often play a role in this process as well. They may work with the lender to ensure that all necessary documentation has been provided and that the funds are transferred correctly to complete the purchase.
Who pays for the title insurance?
Generally, the seller pays for the buyer's title insurance policy, while the buyer covers the lender's policy.
What are some common title problems?
Common title problems include unpaid taxes or assessments, liens or judgments against the property, improperly recorded deeds or mortgages, and errors in the public records.
Do I need title insurance if I am paying cash for the property?
While title insurance is not required if you are paying cash for the property, it is still a wise investment to protect your investment.
How long does it take for a title company to complete a title search?
The time it takes for a title company to complete a title search varies depending on the complexity of the property's ownership history and any potential issues that arise during the search.
Who are title companies regulated by?
Title companies are regulated by state laws and regulations, and in some cases, by the Consumer Financial Protection Bureau (CFPB).
What is title clearance?
Title clearance is the process of resolving any issues or defects in a property's title to ensure that it is free and clear for transfer of ownership.
In conclusion, working with a title company is a vital part of any real estate transaction. It ensures that the title of the property you are buying is accurate and free of any encumbrances, protecting you and your lender from any liability. Understanding the role of a title company, the importance of title insurance, and the steps involved in the title research process can help you navigate the home buying process with greater ease and confidence.
Remember to choose a reputable title company and work closely with them throughout the transaction. With the right guidance and protection, you can enjoy a smooth and stress-free closing process and secure your investment for years to come.
Title Resources Inc. is consistent in customer service from receipt of the title order through closing and post-closing should questions arise. Altogether, our skilled title professionals show efficiency with their quick turn-a-round time and adept handling of all title issues. Not to mention, each member of our experienced staff takes pride in their work and is motivated to assist our customers in any way possible.