A title company is responsible for all that is related to a real estate settlement, everything from the smallest details to the biggest ones. The company oversees everything and deals with real estate agents, buyers, sellers and lenders. Before the settlement takes place, it is this agency that investigates the property's history to ensure that the title has no claims or liens against it. This type of protection provides peace of mind to the person who is interested in buying a piece of property or a new home. |
It is the job of the title company to organize the transfer of both money and property when the time for the closing of the deal rolls around. Everyone involved must assemble at the settlement table. The company will collect and distribute the funds from the sale. The next piece of business is to transfer the ownership of the property to the buyer, and finally, to provide title insurance.
Title insurance is necessary because it protects both the owner of the property, as well as the lending institution. It is in place to offer protection against any unexpected claims that may come up in relation to the property in question. The rates for title insurance are set by state insurance commissions. They are based upon the amount of the loan and the property's price.
When purchasing a new dwelling, most lenders will deem it a necessity for the prospective buyer to purchase a lender's title insurance policy. This protects the lender in terms of the investment they have made in the property purchase. You can choose to buy an owner's policy if you wish. This is entirely up to you. Be aware that the one-time payment you make will serve as protection for the length of time that you remain the owner of it.
There are three main functions that a title company performs. The first is to perform title searches for their clients. The second thing they do is provide title insurance to lenders and homeowners. The third thing they do is the reconciliation and closing of the property transaction. What this third part means is that they make sure that the books get balanced properly and that all funds are disbursed as required.
Not all title companies are run in the same manner. Some are independently run, while others are owned by larger companies. Before working with a company, this is something you might want to find out about.
Title searches are often thought to be the most important duty performed by a title company. What this involves is sorting through county records to find out who owns a piece of property and then checking to see if there are any liens presently on it.
Liens can come from a variety of sources. They can come from mortgages (current or from the past), contractors who are presently owed money, or back taxes that are in arrears. They can also come from any federal or state taxing agencies that have yet to collect their money.
There is a Title Company Sterling Heights, MI residents can turn to and trust to provide proper guidance through this often confusing and arduous process. Locals should visit http://www.libertytitle.com.
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