A title company is one of the key players between the buyer and the home seller. The company ensures the seller is within his rights to sell the property. At the same time, they protect the buyer's rights by seeing to it that the rights to the estate properly goes to them. They are essential in real estate dealings in many other ways. The following explains what a Destin title company does.
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1. Go Through A Title Search
A property title company is similar to what you’ll find on https://ects.com. They can help you create a thorough search on the property to find out if there will be hindrances to its sale. They want a clean title to make sure the transfer will proceed promptly. A title search also allows the company to spot the following:
• Unpaid Homeowners Association Dues
Unpaid fees will vary on the contract set by the HOA (Homeowners Association). They may at times give themselves the power to foreclose a property if the dues are delinquent. The title company won’t allow the sale of the home unless the dues are paid off.
• Existing Mortgages
Like the HOA fees, the house must be free and clear so the previous owner can sell the property. That, or the outstanding mortgage must be paid off first so the tile can be transferred to the buyer.
• Outstanding Leases
The seller cannot sell the property if an existing contract states that someone is currently renting the house.
• Unpaid Taxes
Some homeowners will try to sell a property despite them having unfulfilled obligations. Another scenario is when a contractor wasn’t paid for the work on the property.
• Easements
An easement is the right you provide someone to use the land where your property is located. An example of this is when you’re allowing someone to use your parking space.
2. Do Property Surveys
A title company can perform a property survey for you. Lending companies also require this procedure so they can decide whether or not the property is worth the money they will provide in the mortgage. While it's not always legally required, it’s a helpful process, for the peace of mind of those involved. In addition, some mortgage companies will only want title insurance.
During a property survey, a surveyor will look into the property, and its history. They will do this with a title search. The research focuses on the legalities of the land. They will do sketches of the piece of land, including landmarks, boundaries, and other features. The fieldwork will produce a written report or description of the real estate, the structures and the nearby properties, the street address, and the kinds of improvements the owner can make.
3. Assist In The Closing Process
The title company facilitates the closing deal of the property. Among their responsibilities are preparing the documentation required for the closing, creating a Closing Disclosure, and researching fees that must be paid off. As a selling tip, in some cases, the closing is as soon as seven days. During those times, parties must make sure the transactions and paperwork are done in time.
Along the Closure Disclosure, with or without the ALTA (American Land Title Association) Settlement Statement, the company may include financial transactions of all manner related to the deal closing. These can be title fees, insurance for flood and hazard., real estate fees, escrows, taxes, and other types of payments.
The title company also handles financial disbursements in relation to the closing. Among these transactions are the sending of payments to merchants for their services at the closing.
4. Issue Title Insurance
Title companies will issue two insurance policies to the involved parties: copies for the buyer and the seller and one for the mortgage lender.
The buyer and the lender need title insurance because they have the same rights, protection, and financial interest in the property. That protection activates in case the seller doesn’t have clear ownership of the property and someone unexpectedly made a claim to it. Sometimes it won’t show up during the title search.
The home seller is responsible for paying the title insurance policy, while the buyer must pay for the lender’s policy. The title insurance is only paid once to keep the coverage active, unlike most insurance policies that require recurring monthly or annual payments. The coverage remains active for as long as you keep the home.
In Conclusion
The title company is essential to the closing transactions of properties to protect the buyer and the lender. They create the search to ensure the property has no attachments that will stop the seller from putting the estate on the market. It makes the process faster because they use their expertise to navigate the process.