What Does a Title Company Do?
So you’ve made an offer on a home and the seller has accepted. Great! Now what?
Well, typically after an offer has been accepted, a title company steps in to assist in the transaction process. So what should you know about working with a title company?
To put it simply, the title company comes in at the end of a transaction and acts as the intermediary between all parties to finalize the purchase of real estate property. They contact everyone involved in the transaction (buyers, real estate agents, lenders, homeowners insurance companies, surveying companies, homeowners association companies, property management companies and the county records office - just to name a few) and ensure that any and all necessary legal documentation is completed and the transaction can proceed on time with no unwelcome surprises.
A large part of their job is to make sure that the title to a property is legitimate. The title company will look for any unresolved liens, judgments or unpaid taxes associated with the property. Once everything checks out, the title company will then issue title insurance to protect the lender or owner against lawsuits or claims against the property that result from disputes over the title.
Many times title companies also maintain escrow accounts. On closing day, they bring all the documentation, explain it to the parties, collect closing costs, and distribute money. They also ensure that the new titles, deeds, and other documents are filed appropriately.
So, that sums up what a title company does, but what should you know about them as a home buyer?
You should know that you have the right to select who you want to use as a title company. Your real estate agent will be happy to recommend a title company they trust and that they’ve done business with before, but you have the ultimate say in who you want to handle your transaction.
We’re always happy to answer any of your real estate questions at every step of the transaction process. If you’re looking to work with a real estate team that you can trust, give a BHURDinUtah agent a call today!