These companies will help you investigate the title to a property to make sure that it is in every way legitimate and to help make sure that there are no unknown holders of debt against the title. If someone were to purchase a property without the help of a title company then they are at increased risk later finding out that the title they hold is illegitimate or that there were creditors that hold liens against the title that is unknown to the buyer. An average buyer doesn’t have the skills or expertise to do an in-depth title search and that’s where a company like this comes in.
As part of the service, the title company will do everything possible to ensure that the seller is legitimate in every way and that they hold all the rights to sell the property. The last thing a buyer wants is to buy a property from someone who doesn’t actually have the right to sell it. Using a title company helps protect the buyer or the mortgage lender from this type of fraudulent transaction.
A title company can also be an escrow agent. This means that they will hold payments and deposits until certain transactions have been completed. This takes the money out of the hands of the buyer and seller and puts it into the hands of the title company and as an escrow agent, they will then disperse it as agreed upon. That way both parties do not have to worry about the money as long as everything goes as it’s supposed to.
This company also provides title insurance that can protect the mortgage lender or the buyer. This protection is against any issues with the title after purchase or against any claims made by lien holders. Essentially all mortgage lenders require this type of insurance to approve the loan.
A title company will also be the one who often puts in an order for the property to be surveyed. This means that all parties concerned will know precisely the property boundaries and other factors about the home. This is considered part of the title search.
A title company can also act as the closing agent. When it’s time to do the final closing on the property that transaction will take place at the title company’s office. The title company will make a final assessment to determine that everything is as it should be and then they will issue the insurance, payout any money they held in escrow and do any of the final paperwork necessary to complete the transaction.