Through the home sale process, a title company wears many hats. A single title company can issue insurance, hold funds and paperwork in escrow, and serve as a closing agent. It can be difficult to remember all of the tasks a title company can help you with during a home sale, so we’ve broken it down into four distinct roles a title company can perform. Read on to learn what those four roles are and why they are essential for a successful home sale.
A Title Company Performs a Title Search Before Your Home Sale
Before you can sell your house, you have to “clear” the title. Title issues can account for nearly 11% of closing delays, and may sometimes come as a surprise to the seller. Naturally, it is crucial to get the help of a title company in finding any potential issues. A clear title is necessary for selling because it guarantees that you have ownership of this property and therefore have the right to sell that ownership.
The Company Issues Title Insurance to the Buyers of Your Property
A title company can then issue title insurance to the buyers of your home, which protects that new buyer from any troublesome future claims of property ownership. This helps make for a smooth and satisfying home sale for you, and a home purchase for them.
The Company Maintains Escrow Accounts
A title company may also manage the escrow account for a home sale while acting as an escrow officer. The company’s duty in this role is to safeguard money and documents related to the transaction. This can include the deed, closing costs, and, eventually, the down payment from the buyer. The title company will only disburse payment and release documentation with the written permission of the buyer and seller.
The Title Company Helps Oversee the Final Steps of the Closing Process
In Maryland, the final phase of your home sale will be handled by a title company. The closing process involves:
- Drafting final paperwork and documentation
- Overseeing signatures on closing documents
- Making sure the property title passes from the seller to the buyer
- Overseeing disbursement of funds from escrow, including costs and fees
When you are ready to begin the home sale process, select a title company that is transparent about its work, responsive and communicative, and has excellent customer service. Colony Title Associates is just the place to help you through your real estate transaction.
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, and LinkedIn.