What Does a Title Company Do?

A title company’s main responsibility is to conduct a title search to ensure that the property’s title is clear and can be legally transferred to the new owner. They also issue title insurance to protect against any unforeseen issues that may arise with the title in the future. In addition to conducting title searches and issuing title insurance, title companies may offer escrow services to ensure that all conditions of a sale are met before the transaction is finalized. This involves holding funds and documents in a neutral account until both the buyer and seller have fulfilled their obligations. The title company will investigate public records and documents to determine property ownership, liens or encumbrances, and other issues that may affect the transfer of ownership during a title search. If issues are found, the company will work to resolve them before the sale can go through.

Alt text: A photo of title insurance document

The role of the title company is to ensure that the transfer of ownership of a property is conducted legally and accurately. They act as a neutral third party and provide title insurance to protect against any defects in the title that may arise. The title company works with a team of professionals, including attorneys, title examiners, and escrow officers, to ensure that the transaction is completed in compliance with all applicable laws and regulations.

What Is Title Insurance?

Title insurance safeguards real estate owners and lenders against financial losses caused by title or ownership defects. During the sale process, a title search secures clear ownership by addressing liens, taxes, and other issues. It shields against undisclosed defects or issues that may arise after purchase, covering resulting losses. There are two types: owner’s title insurance protects the owner, while lender’s title insurance protects the lender; both are typically required in real estate transactions.

How Much Does Title Insurance Cost?

Title insurance costs vary based on factors like property location, value, loan amount, and policy type. In the United States, prices range from a few hundred to several thousand dollars, averaging between 0.5% to 1% of the property’s purchase price. Note that costs may be negotiable, so comparing rates from different companies ensures fairness. It’s advisable to check with the Department of Insurance as some states regulate title insurance expenses.

Who Represents the Title Company?

In a real estate transaction, the title company acts as a neutral third party, representing itself. Its role is to ensure a smooth and legal transfer of property ownership while providing title insurance against any title defects. The title company has a team of professionals, including attorneys, title examiners, and escrow officers. They collaborate to ensure compliance with the purchase agreement and relevant laws, facilitating the transaction. While working closely with other involved parties like buyers, sellers, agents, and lenders, the title company’s primary responsibility is to accurately and efficiently complete the transfer of ownership.

Who Pays Off the Seller’s Mortgage at Closing?

During closing, the seller’s mortgage is paid off with the sale proceeds, while the buyer covers the purchase price and clears any outstanding mortgages or liens on the property. The title company or closing agent handles the process, working with the seller’s lender to obtain a payoff statement and make all necessary mortgage payments. It’s important for the seller to provide the total payoff amount, including principal balance, accrued interest, fees, and charges, to the title company or closing agent before the closing date.

In Conclusion…

The title company ensures legal and accurate property ownership transfer as a neutral third party. It provides title insurance against title defects. With a team of professionals including attorneys, examiners, and escrow officers, the company ensures transaction compliance with laws and regulations. Realtors assist in various ways, providing property information and facilitating effective communication among parties. A reputable title company and knowledgeable realtor are crucial for a smooth closing, addressing any issues that may arise.

The Putzier Real Estate Team Assists Sellers and Buyers

The Putzier Real Estate Team can assist both sellers and/or buyers with the title company in a number of ways. Here are a few examples:

  1. Referrals: The team refers clients to reputable title companies in Natrona County.
  2. Connect with a title closer: The team connects clients with a title closer to discuss available title insurance policies and choose the best one for their needs.
  3. Coordinate with the title company: The Putzier Team collaborates closely with the title company, ensuring timely document preparation and signing. They facilitate communication among all parties involved in the transaction.
  4. Issue resolution: If a title problem arises, the team works with the title company to address it and maintain transaction progress.
  5. Provide support: The Putzier Team offers emotional and logistical support to buyers and sellers during the closing process. They answer questions, provide guidance, and ensure everyone feels comfortable and confident.

The Putzier Real Estate Team helps Buyers and Sellers navigate the complexities of the title company and ensures a smooth and successful closing. Start your home search today! We cannot wait to help you!!