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A title company performs many valuable tasks for aspiring homeowners or people who want to purchase plots of land. These companies work to make sure that the ownership documents pertaining to a particular piece of real estate are legitimate. After they do this, they issue insurance to that piece of property. This type of liability coverage protects lenders and owners against lawsuits that arise from disputes about the legitimacy of the titles or arguments about who owns a particular piece of property. A title company also maintains escrow accounts that contain the funds necessary to close on the home. Maintaining these accounts ensure that the money is used for its proper purpose. It also conducts the formal closing for the home. A settlement agent will bring the necessary documentation, explain the documents to the parties involved, collect closing costs, and distribute the money from the closing. To determine if titles are valid, these companies perform searches in the property records to make sure that the person or corporation claiming to own the property actually does so. Sometimes, these searches will uncover subsequent transfers that give other parties legal rights to full or partial ownership to the property. These searches can also uncover outstanding mortgages, judgments, unpaid taxes, restrictions, easements, leases, and liens. All of these issues can impact ownership and usage of the property, which makes the property records search very important. In addition to a search of the property records, these companies may also commission a survey of the property. This consists of determining the boundaries of the plot of land on which the property is located and drawing a map of the result. Sometimes, the actual boundaries as determined by the survey are different from what homeowners think the boundaries are. A survey can also determine whether any encroachments or easements impact ownership claims or give other people rights of access to the property. The title company may also require a property survey, which determines the boundaries of the plot of land that a home sits on. The survey also shows whether the home actually sits within those boundaries and whether there are any encroachments or easements on the property that may impact an ownership claim. To make sure the property is not encumbered and does not have any ownership issues when a person is trying to purchase it, a title company will prepare an abstract that details the history of the property, including the details of each time the property was transferred. This abstract will also give the details as to any liens or encumbrances to the property, and the title company will work to clear them before the new owner takes possession so that the new owner has clear, marketable ownership of the property and will not be affected by a pre-existing lien. Looking to buy some property? This title company in Ann Arbor will help you with the process: http://www.libertytitle.com.
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