Title Companies and Their Duties

Published: 24th August 2009
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Buying a house is a lot more than just looking around, talking to agents, picking a house, apartment, or property, making an offer, and settling a payment for it. There are still a couple of things that you would need to do after finding the right house and before moving in.

The whole legal process of transferring the property from the seller's name to you, the buyer, comes in between. Of course, before you want to go in all of this, you might also want a further background check on the property that you are going to spend thousands of dollars in. TO do this, a title company is your best tool.

What a title company is

Buying a property is one of the biggest financial decisions any person would do, so, any sound individual would take a lot of safety measures to do that. In order to do that, title companies were created.

A title company is basically someone you can hire to settle a lot of things related to real estate. To better understand what they are, let's look at what they usually do first.

One of the top things title companies do for the real estate business is to do an "abstract of title", which basically will investigate the property's deed. They will dig in whether the seller is really the legal owner of the property he is selling. Then, the company will also look for other possible hassles the property can bring to the buyer, like unpaid mortgage, judgment, or any kind of lien that will cause trouble to the buyer if not settled by the seller before passing the deed on.

Title companies also check the presence of unpaid property taxes on the deed for sale, as it can really be something not worth paying for by the new owners. Unpaid taxes remain connected with the property, so when you buy one with a baggage of unpaid taxes, you will be the one billed and even arrested for not paying your dues.

Apart from the property's unsettled dues, the title companies also look for other conflicts that might turn out to legal disputes in the future. One example is whether the property has issues that will restrict, prohibit, or even limit your use of the property or may even give rights to other people who are not the property owners to use your property.

After checking all of these, the title company will now issue either a "title opinion letter", or if there is a need for title insurance policy to be issued for the property, a "Commitment of Title Insurance". Both will get the ball rolling to forward the process, almost like a signal that all paper works and collaterals must be at hand and ready by the closing date.

Title companies will also help you in settling your fees. By using an escrow account and an escrow officer for your case, you can be sure that all of your fees, along with the necessary documents are filed and ready and fully settled.

If you are curious about other real estate issues, Glendale Golf Homes and Phoenix Homes with Pools can be of help. Phoenix Houses for Sale with Private Pools can also explain a number of things about real estates.

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