When it comes to buying or selling a home, the title company is one of the most important yet overlooked players in the real estate transaction. You might not think much about your local title company until you’re buying a house and need to get an escrow account to finalize your loan. Or until you’re ready to sell your home and need a fast sale with no hiccups along the way. These are just some of many scenarios where you might reach out to a title company for help. Title companies streamline real estate transactions by verifying and documenting ownership of homes, handling risk management for lenders, and keeping track of property records. As such, finding the right title company can make all the difference when you’re trying to sell or buy property. If you live in South Florida, here is our list of the leading Miami title services.
What is a Title Company?
A title company is an organization that settles real estate transactions and performs title research. They are also responsible for issuing title insurance policies in the event of a property dispute. The process of buying or selling a house involves many steps, title among them. Title companies make sure all the paperwork is in order and the title to a property is legally valid. The title company is also responsible for verifying that all owners listed on the deeds and mortgages are who they say they are. If a person on the deed is deceased, for example, the company will need to verify the person’s identity in order to proceed with a real estate transaction.
How Does a Title Company Work?
When completing a title search, a title company will review records at the county’s land records office. They review the chain of title (who currently owns the home, who owned it before, etc.), as well as any liens that might be on the property. If everything checks out, the title company will issue an “all clear” title report to the buyer and seller. Title companies also review documents pertaining to real estate transactions, like sales contracts, mortgages, and deeds of trust. They make sure all parties sign all the necessary documents. When a real estate transaction is complete, the title company will conduct another title search (sometimes referred to as a “lien search”) to make sure a subsequent real estate transaction won’t disrupt an existing one.
Who Represents the Title Company During a Real Estate Transaction?
If you hire a title company to help you with a real estate transaction, it is possible that you will talk to someone in the organization who is not a title agent. This person may be a title manager, manager trainee, or an underwriter. The title agent is the person who will do your title search, sit in on your closing, and sign off on your title policy. Title agents have a few years of experience and are registered with the state. They are licensed to conduct real estate transactions in their state.
When Should You Hire a Title Company?
While there are situations when a title company is not necessary, it is almost always a good idea to hire one. Some situations where it is a good idea to use a title company are: When selling a home where the owner is financing the sale with a private lender (home equity loan, second mortgage, etc.) When buying a home with an FHA loan. When buying a home from a seller who is deceased. When buying a property from a person who is in the Armed Forces and stationed abroad. When buying a property in probate. When buying a property that is being remortgaged. When buying a property with a trust. When buying a property that has a lien on it. When buying a property that is in a land contract. When buying a property in joint tenancy. When buying a property in a divorcing couple.
Why Are Selecting the Right Title Company Important?
When you’re buying or selling a home, it is not just a real estate transaction — it is a legal and financial transaction. The title company and its staff are the experts in real estate titles. They know what to look for in a title search and can prevent you from making costly mistakes. If you don’t use a title company, you will end up doing your own title search. The problem with this is that you lack the expertise necessary to come to a conclusion. You won’t know what you should be looking for, and there is a very real risk that you could miss something important.
How to Find the Right Title Company for You?
When you are searching for a title company, the most important thing is to find one that is reputable. Start by asking around in your real estate network: Are any of your friends using a specific title company? If so, ask them how they like the service. Next, use these tips to find the right title company for you: Check the BBB: The Better Business Bureau is a great resource for finding out if a company has had many complaints filed against it. Ask real estate agents: These are the professionals you are working with when buying or selling a home. It makes sense to ask them for a recommendation. Check online reviews: A quick Google search will show you reviews for many title companies. Ask your mortgage company for a recommendation: Your lender likely works with several title companies. Ask your real estate agent: Your agent is likely to know other real estate agents, which means they may also know title companies. Use a real estate title service: These services allow you to search for a title company based on your location.
A title company is an organization that settles real estate transactions and performs title research. They are also responsible for issuing title insurance policies in the event of a property dispute. The process of buying or selling a house involves many steps, title among them. Title companies make sure all the paperwork is in order and the title to a property is legally valid. Once the title company has verified that all owners listed on the deed are who they say they are, they will issue an “all clear” title report to the buyer and seller. When you’re buying or selling a home, it is important to find the right title company to help you with the transaction. Start by asking around in your network, and then use these tips to find the right title company for you.