The Title Company
Buyers & Sellers
A title company serves a vital role for both the buyer and the seller in a real estate sales transaction.
Here’s an overview of what a title company does for each party:
For the Buyer
The title company conducts a thorough title search to examine public records and ensure that the property’s title is clear of any liens, encumbrances, or legal issues.
The title company issues a title insurance policy to the buyer, protecting them against any unforeseen title defects or legal challenges that may arise after the purchase.
Acts as an escrow agent, holding the buyer’s earnest money deposit and coordinating the transfer of funds during the closing process.
Facilitates the closing process by working with the seller, real estate agents, and lenders to ensure that all necessary documents are prepared, signed, and funds are distributed appropriately.
Ensures that the necessary legal documents, such as the deed and mortgage, are properly recorded with the relevant government office to officially transfer ownership.
Clearing Title Issues
Resolves any title issues discovered during the title search to ensure the buyer receives a marketable and clear title.
For the Seller
Conducts a comprehensive title search to identify any potential issues with the property’s title that need to be addressed before the sale.
Typically issues a title insurance policy for the buyer, providing protection against unforeseen title defects and legal challenges.
Acts as an escrow agent, holding funds from the buyer and distributing the seller’s proceeds after the closing.
Coordinates the closing process by working with the buyer, real estate agents, and lenders to ensure a smooth transfer of ownership.
Ensures that all necessary legal documents are properly recorded, including the deed and mortgage satisfaction, to officially transfer ownership and release the seller’s mortgage lien.
Paying Off Existing Liens
Ensures that any existing mortgages, liens, or financial obligations associated with the property are paid off from the proceeds of the sale.
Providing Closing Disclosure
Prepares a Closing Disclosure detailing the financial transactions of the sale, ensuring transparency in the closing process.
In summary, a title company acts as a neutral third party that facilitates a secure and legally compliant transfer of ownership between the buyer and the seller. Their services provide protection, transparency, and coordination throughout the real estate sales transaction.
If you’d like more information on any of the above, or anything else pertaining to mortgage loans, please don’t hesitate to get in touch with Treasury Funds Home Loans, Inc. today!