The Title Company's Role
The purchase of a home is often the largest single financial investment many people may make in their lifetime. The importance of fully protecting such an investment cannot be overly stressed. A basic home ownership protection essential to the security of the home is safe, sound, reliable, title insurance.
What is Title insurance?
It is the application of the principles of insurance to risks present in all real estate transactions. These risks are divided into two main categories: hidden hazards that cannot be detected in the examination of title, and human errors which will always be with us. Examples of hidden hazards are forgery, incompetence of grantor or mortgagor, unknown heirs, fraud, impersonation, etc.
Title insurance differs from other types of insurance by protecting against future losses arising out of events that have happened in the past. There are no annual premiums. One premium, based on the amount of the sale or mortgage, is paid when the policy is issued and is good for the life of the policy. A lender's policy, insuring the lender, stays in effect until the loan is paid off. An owner's policy, insuring the buyer, is good as long as the owner or owner's heirs own the property.
Preliminary Title Report or "Commitment For Title Insurance"
The title company will search and examine the public records to investigate information surrounding title to the property. he title search is used to create a preliminary report provided to the lender or purchaser before closing, and reveals the following:
- Who the legal owner of the property is.
- That the "estate" or degree of ownership being sold is currently and accurately vested in the seller.
- Property tax status and other public or private assessments.
- The presence of any unsatisfied mortgages, judgments or lies that must be satisfied before "clear title" can be conveyed.
- Existing easements, restrictions, rights of way or other rights granted to others.
Teamwork
The title company is involved in the real estate transaction almost from the time the purchase agreement is signed, through and beyond the closing. Working mostly behind the scenes, but always in close coordination with real estate agents, lenders, escrow officers, and legal counsel, the title company strives to carry out an important, complex procedure in an efficient and professional manner.
The Home Selling Process:
FSBO vs. Listing with an Agent
Selecting the Right Agent to List Your Home
Preparing Your House for Market
Open House Preparation Checklist
Escrow for Sellers & Buyers
Escrow Flowchart
The Title Company's Role
Lender Assistance to the Seller
Disclosures in Real Property Transactions
The Appraisal
Inspection & Home Warranty
Federal & State Withholding Regulations
Capital Gains
Closing Costs
Moving Checklist
Glossary of Terms
