What Does a Title Company Do?

Posted by admin on September 29, 2016
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It’s the bottom of the 9th, two outs, the bases are loaded, and your team needs just one strikeout to win the game. That’s when you bring in The Closer, the person who gets the job done in crunch time.

A title company’s job is to close the deal on your home and make sure the property is free and clear for you to own. Every little detail matters in real estate, and title companies specialize in working with the details.


What is a title?

A Title is a legal document or documents which say who rightfully owns a piece of property. The title record of a home shows who has owned it in the past and how it has been transferred over the years.

Title Insurance is the preferred Evidence of Title today. Other evidences of title include an Abstract & a Certificate of Title. Additionally some Northern States use and recognize a Torren’s Certificate. Deeds on the other hand are Instruments of Conveyance of one’s interest in real property from one party (seller) to the other party (buyer).

The documents in a title also show who has the rights to certain aspects of the property, such as mineral rights or permits to use the property for renting or farming, for example.


Why do I need a title company?

Title companies collect all of the documents necessary to prove that whoever lives in the home has the legal authority to sell it to you, as well as discover if their property is under lien by the bank. When hidden things such as liens are uncovered, you’re able to take care of them before any contracts are signed.

The title company also provides you with title insurance, protecting you in case the title is contested.

Once the title company determines a property is free and clear to be transferred, one of their agents may act as the agent for the final closing and contract signing, but this can be conducted by a REALTOR® or attorney as well.


Who pays for a title company?

Like most things in real estate, the fees for using a title company are negotiable. Usually the buyer or the buyer’s lender will pay, since many lenders require title insurance before they will lend you money for a down payment. But you will work out who pays the fees with your REALTOR® and the buyer/seller.

In short, title companies make sure all the details are ironed out before a real estate deal is made final. Call us today at 417-818-1237 and we’ll answer any more questions you have.

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