Title companies will play several essential roles in common real estate transactions. The roles of a title company include acting as the agent of the insurance company, the buyer, the seller, and any other involved parties. Title companies also review titles, issue insurance policies, facilitate the closing process, and complete paperwork. In your home buying journey, it may be overwhelming to hear all of the services offered by a title company. If you are wondering what Colony Title Associates can do for you, read on to see our breakdown of the most important roles of a title company.
Title Search and Review
Title companies contain sophisticated title search and review departments. These departments work hard to review any public records relating to the real estate in question to inform all interested parties of the status of the desired title. The company confirms the owner of the property or identifies “clouded” information that may call into question the true owner.
It is one of the roles of a title company to provide this information via a preliminary title report or title insurance commitment. Title companies also provide information related to foreclosures and other legal actions involving the property.
Acting as Closing Agent for Real Estate Transactions
One of the most important roles of a title company is as a closing agent. In this role, the company is an agent of each party to the transaction. The title company will get signatures for all of the closing documents and receive and distribute payments related to the sale. After the papers have been signed, the title company records documents, such as deeds and mortgages, in the local county land records office.
Acting as Escrow Officer
An escrow officer holds documents or money for the transaction. For instance, the homebuyer will give the title company the money necessary to pay the purchase price. At the same time, the seller will provide the title company a signed deed to the property. Then, the title company releases the deed and the money according to the instructions of the buyer and seller.
Role of Title Insurance Issuer
Title companies issue the policies of title insurance on behalf of the insurance companies. Most often, the title company acts as an independent agent and receives a commission from the insurance company for issuing the title policy.
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+.