Most real estate transactions are completed with the assistance of a title company. The buyer and/or seller will normally hire a title company to help move the transaction along smoothly and provide title insurance. A title company works as a third party in the real estate transaction, handling most of the paperwork involved with the home purchase and sale.
Reasons why it is Important to Hire a title company
To provide title insurance
To help ensure that the buyer purchases the property without the possibility of anyone being able to come along later claiming to have interest in the property. The title company does a thorough check of the property’s title records to make sure there are no claims pending, or anything outstanding that might hinder the process or come back later to haunt the buyer and/or seller. Anything found during the search is paid off before the transaction is complete.
Handle all property transactions smoothly
The title company helps to make sure that all facets of the property transaction go through smoothly and correctly. They check to be sure there are no outstanding taxes, liens or claims against the property or owner so the sale transaction goes seamlessly, with no unpleasant surprises.
To provide escrow services
Crucial especially for the seller, to be sure the mortgage is totally paid off and that all exchanges of funds are accomplished before the buyer takes over ownership and possession of the property. The title company handles all money, so the buyer does not have to give the deposit or other money directly to the seller. The title company holds the deposit until the property closes, when funds are then exchanged to complete the transaction.
To handle the closing and preparation of all the title/transfer documents
This includes not only the financial aspects of the sale, but also being sure that any deeds or documents to clear title are recorded and executed correctly so they will be legal.
Is a Title Company worth the cost?
When you are in the middle of buying or selling a home, the last thing you want is to have complications come up that could hinder the sale or delay the process. A title company isn’t an absolute requirement, but there will still be a need to make sure that the title to a property is properly written, executed and lawful.
An attorney could be hired to act as a closing agent, but that is usually a more expensive option. For most buyers and sellers, the smartest route is to use the services of a title company to receive all the services needed to close the transaction without any issues. There will also be extra ‘peace of mind’ in knowing that everything was handled correctly, and the buyer is insured against any possible issues that could arise.