Title Company

April 22, 2010 | Posted by admin

     The title company plays a very important role when purchasing a property. This is because of the various things that you need to verify. Without the title company, no one will look into the legitimacy of the title as well as the right and authority of the seller to sell the house. All these information and more has to be verified to avoid problems in ownership claims in the future.

      The first thing that the title company will do is the abstract of title. The abstract will contain a short history of the property. In order to complete this, the title company will have to check the different records relating to the property. Among the information that will be verified will be the rightful owner of the property. It will also be checked if there are existing liens or unpaid fees concerning the property. Also, other things have to be determined such as the restrictions or leases affecting the purchase.

     The next thing that the title company will issue is the title opinion letter. However, if the company will issue a title insurance, it will be called a Commitment of Title Insurance, which will be issued to the lender or the buyer or both. These will indicate the different requirements that have to be completed and will specify the problems that have to be resolved before a good title can be obtained.

     It is part of the duties of the title company to prepare all the necessary documents as well to resolve the related problems to close the transaction. It is during the closing that both parties will sign the documents prepared. The said documents are essential because they will secure both the lender and the buyer of the property concerned.

     In addition to that, the different cost that the buyer will settle will also be explained. This will be indicated in the settlement statement known as the Hud-1. The said statement will indicate all the fees that have to be paid to the lender, the State and to the other parties involved. The buyer and the seller can agree on who will pay the different items in the statement.

     After the closing, the title company is tasked to record the transaction with the appropriate agency. In addition to that, original copies of the documents will be given to the appropriate individual. The new owner should receive his deed and the lender shall have the mortgage files. Once the mortgage is paid in full, the owner will receive the original mortgage documents.

     It is also the duty of the title company to collect the payment. After that, he will distribute the payments accordingly. He will pay the different parties involved. If there is an existing mortgage, he will pay it off too. Finally, he will also give the seller the proceeds of the sale. The distribution of the payment will be in according to the closing statement.

     The title company plays a significant role in the home purchase transaction. This is why it is essential that you work with a competent title company.

     Get more information here.

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