Understanding What Title Companies Do
Whether buying or selling a home, title companies play an important role in the process. Would you want to unknowingly purchase a home with easements or existing liens? This is where a title company comes into play in a real estate transaction.
One of the title company’s roles is to research the title of the home and verify that the buyer has the legal right to sell the property. This means that they perform a title search to see if there is any reason the sale might not be able to go forward.
Some of the things title companies look into are:
-
Existing liens on the property
-
Unpaid HOA dues
-
Outstanding mortgages
-
Unpaid tax liens
-
Easements on the property
-
Leases
-
Restrictions
-
Judgments on the property
If the property in question comes back clean, the title company will then issue title insurance for the property to ensure that the buyer is protected in the future from any claim on the property in the future.
Title companies also perform the closing on the property. This is where you will sign all the paperwork to take ownership of your new home. The title company also maintains your escrow account until the loan is closed.
When buying or selling a home there can be many companies and moving pieces to the process, but title companies play a crucial role in protecting both buyers and sellers.
For more information about title companies or on buying or selling your home visit SABOR.com and use a San Antonio area REALTOR®.