If you are about to purchase a piece of real estate, understanding how to work with a title company is essential. A title company will make sure that a title is legitimate, and will issue the buyer title insurance for the property. Title insurance will protect the lender and owner against lawsuits or claims to the property resulting from title disputes. A title company also often maintains escrow accounts and conducts the formal closing of the property. You simply cannot close a purchase of new property without the help of a title company. Read below for an introduction to what a title company is, and how a title company works for you during the home closing process.
How A Title Company Determines That a Title is Valid
The most important thing a title company does is to make sure a property title is legitimate. To ensure this, the title company will conduct a thorough examination of property records to make sure no one else could claim ownership of the property in question.
The title company will also look for any outstanding mortgages, liens, judgments, unpaid taxes associated, or any other property issues that may impact ownership. Your title company works for you by issuing an abstract of title, which is a summary of what is found during the title search. This gives the new owner an informed history of the property before they claim it as their own.
The Benefit of Title Insurance
Once the title company proves that the title is valid, they will issue a title insurance policy to the new owner. This insurance will protect lenders or owners against claims or legal fees that may arise from disputes over property ownership.
The Cost of Title Insurance
The cost of the title insurance will depend on the size of the loan and the state of residence. Fortunately, the premium is a one-time fee paid at closing and not an ongoing expense.
When to Meet with a Title Company
You may meet with an agent from your title company on multiple occasions. For instance, if the title company maintains an escrow account for you, the agent may reach to provide details on that account. If your title company handles the closing process, you will meet with a settlement agent in person during that time. Your title company works for you by having an agent explain the documents related to the settlement before you sign anything.
However, buyers should feel free to contact their title company at any time. The title company works for you and has your interests in mind during your property closing process. If you have any questions or concerns about your title search, title insurance, escrow account, or closing, you can contact your title company.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.