A title company can help when buying a home or any type of property as it is one of the biggest financial investments a person can make. That's why it's important to make sure the transaction goes through and your money is being put into the right place. Securing the professional services of companies like this will help the sale go smoothly and protect from financial loss. |
What Do They Do?
A title company works to oversee the interests of everyone involved in a real estate settlement. This includes the buyer of the property or home, the real estate agent and the lender. The first thing they'll do is a property abstract.
During a property abstract all legal documents pertaining to the property are collected and cataloged in a chronological order. Generally, it includes references to the will, deeds, any tax sales, probate records, court litigation. A property abstract will reveal all the names of anyone who has previously owned the property, how long each person owned the property, and how much it each sale went for. Sometimes it will even state any capital improvements that were made on the property.
They'll also perform another abstract, which includes in-depth search of the real estate records of the town or county you're purchasing the house in. This will reveal:
- The legal owner of the property - Mortgages, liens, judgments, and unpaid taxes on the property that have to be paid before the property can be resold - Details of any restrictions or lease that can affect the property
They will complete necessary documents to fix any issues pertaining to the property. Once all that is complete all parties can now "close the deal." During this final stage of the settlement a closing statement is prepared. A closing statement will include the charges for preparing the documents, the lender's fees and the title company's fees.
The title company will collect the purchasing funds from both the lender and buyer and the settlement costs from the other parties involved and dispense the funds appropriately. First, they'll pay off any mortgages if they exist, the expenses incurred during the transaction, and finally the seller gets his cut.
Finally, all the legal documents will be recorded at the local courthouse and returned to the appropriate parties. The lender will receive the mortgage to the house and the new owners will receive the deed. Why do you need them?
A title company handles all the dirty of work that comes with purchasing a home or a parcel of property. They make sure that you become the sole owner. So if you are in the process of purchasing a property be sure to use the professional services of one.
A Michigan title company can help locals process real estate transactions smoothly, securely, and conveniently. To speak with a thoroughly experienced and extremely friendly group of industry experts, go to http://www.libertytitle.com/about-us/. P>
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