Colony Title Associates

The Beginner’s Guide to Title Companies

Title insurance doesn’t have to be confusing.

You found the perfect home for your family and you cannot wait to move in, paint the walls that perfect yellow you found at the hardware store, and sink your feet into the plush carpeting. Before you can get behind the wheel of your moving truck, you need to find a title company to make sure that your property is safe to buy. Here’s what you need to know about title insurance and the world of title companies!

Title Companies

Title companies work on your behalf to make sure that the title to the piece of real estate you are planning to buy is legitimate. After completing this, title companies will also issue your title insurance for the property so that you can move forward. Why do you need title insurance? Title insurance protects you, the owner, and the lender from any lawsuits or claims made against your property.

Title companies can also maintain an escrow account, an account with money needed to close on the home that is only used for closing costs and settlement, and do the formal closing on the home on your behalf.  Once everything is done and the home is officially yours, your title company will make sure that all documents, titles, and deeds are filed with the appropriate authorities.

How Do They Validate the Title?

Title companies, as stated above, exist to make sure that a property is legitimate and that once you purchase the property you will be the owner. First, the title company will do a title search. These involve examining property records to ensure that the entity claiming to own the property legally does and that the property will be able to be transferred easily and legally to you.

The title company will then look at the financial aspects of the property. What outstanding mortgages are associated with the property? Are there liens or judgments against the property? Are there restrictions, leases, or other potential issues that could affect your ownership? Depending on your title company, they may complete a property survey to plot out the exact boundaries, ensure that your home isn’t on anyone else’s land, and ensure that none of your neighbors are overlapping on your land.

How Do You Find the Right Title Company?

Colony Title is an excellent, experienced title company that would love to help take the stress of title validation off of your back. Try to find a title company with years of experience in the area you are moving to. Look up your prospective title company online and with the Better Business Bureau. The amount you pay for your title company and title insurance will vary depending on how large the loan is and which state you are moving from or moving to.

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 take advantage of the record low mortgage rates to come. 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+.