The average person does not buy more than 1 or 2 houses in their lifetime so the transaction is viewed as pretty substantial. Most homes cost tens of thousands of dollars and some are upwards of that, so you can see why banks and homeowners alike take steps to preserve the value and ensure the transfer of the property.
The most important responsibility that title companies have is to make sure that the title goes from the seller to the buyer easily and actually is what it is supposed to be. If it supposed to be a 10 acre parcel, the title company ensures that, as well as any existing liens or other encumbrances on the property.
It would be title company’s prime responsibility to provide the necessary comfort and assurance to the buyer that the property he intends to buy is free from any legal trouble and would not lead to any ownership dispute once the buyer closes the transaction.
Realtors involve the title company as soon as they have an accepted contract by sending the file to them as soon it is signed by all parties. The title company immediately confirms all compliance with pertinent laws and regulations and then oversees the transfer of title and the following responsibilities as well.
Confirming the identity of the sellers
The confirmation of the seller’s identity and their legal ability to transfer the property is verified at this point by the title company. Then they submit all necessary legal paperwork as well at the appropriate time.
The title is legally transferable
The other important objective of the title company would be to ascertain the title of the property being purchased by the buyer is absolutely clear. This would mean that the property has no encumbrance or is not under lien. There is no property or any other fiscal tax or costs due by the seller to the state.
Insuring the title of the subject property
In many instances, the title company also organizes for title insurance to the buyer against any legal risks that might surface in the future. This would insure the buyer against any ownership issue emerging in future and costs involved in litigation and other matters related to settling any dispute regarding the sale being made by the actual owner of the property. Though the buyer has the right to choose his title insurer, the buyer usually prefers the same company with whom the lender takes tile insurance cover.
When a title company is satisfied with respect to title of the property, they issue a document called as the “Commitment of Title Insurance” to the mortgage lender along with a copy to the other parties involved in the deal i.e. the buyer, seller, Realtor and the real estate attorney. As a buyer it is essential that you understand the role and responsibility of the title company.
It is in your interest to get all ownership and legal details about the property that you intend to buy. Share the responsibility with the company checking the title for your property and understand the details that they provide.
Gavin King is the Designated Broker of Realty In Idaho and enjoys writing articles on kuna idaho homes for sale and homes for sale in boise idaho
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