When purchasing real estate, it is imperative that you select the right title company. A title company performs many essential functions when purchasing a piece of property, and if you choose the wrong title company you could be in for a huge headache. So, what exactly does a title company do and how do you go about choosing the correct one? Those questions and more will be answered in this blog.
What exactly does a title company do?
A title company makes sure that the piece of property you are purchasing has a valid title. This means that the property has no other owners and once sold will not be claimed by anyone else. Title companies accomplish this by doing what is called a title search. A title search is the process by which a title company scours the records to see if anyone else might have a claim to the property. Typically, these documents are stored with the county where the home is located. A title company will also typically take a look at for any other mortgages, judgments, liens or other issues which might deny the buyer an ownership interest. They will produce a report which will include their findings, known as an abstract of title.
What exactly is title insurance?
If the title insurance company determines that the title to the property is valid, then they will issue a title insurance policy. This policy protects the buyer of the property in case someone comes up down the road claiming to have an ownership interest in the property you bought. If someone does make a claim of ownership, the fees associated with defending this claim will be covered by that title insurance policy.
What should you consider when selecting a title insurance company?
There are many title companies out there and selecting the right one is critical. You do not want to select one unless you know that they are qualified and have had success in the past. A real estate agent may be able to recommend a title agent, someone you know who has recently bought a home could recommend someone, but at the end of the day you want to make sure that whomever you choose, they know what they are doing. You want someone who has been working in title for years. It is helpful if someone has done extended title business over many years. You will also want to search around to see how much the premiums are going to be for the title insurance policies. You want to make sure that the insurance policy you select will cover the full purchase price of the piece of real estate you bought as well. Title insurance premium is a one-time fee and is usually less than $1,000.00.
Select the Lopez Law Group to handle your title needs!
The real estate attorneys at the Lopez Law Group is here to assist with your title needs. We offer title checks and can assist you when purchasing your new home. You want someone you can trust when it comes to title. The last thing you want to do is hire someone who has no experience doing title work and be left with a major problem years down the road. At the Lopez Law Group, we run a thorough check on the property to ensure that it is free and clear from any and all claims to ownership. You can rest assured that our title check will be accurate, and you will not have to worry about someone else coming along claiming to own the property. In addition to checking title, we also handle surveys for the property, and we handle the payoff. The payoff is the process by which the funds from the buyer are taken and the payment of the obligations of the seller are performed during a real estate transaction. We are a one stop shop and can handle all of this for you to make the process easy and efficient. We can be reached at 727-933-0015. We are standing by and are ready and willing to assist. A home purchase is one of the biggest purchases any of us will ever make, make sure that it is protected. Don’t leave your title needs to someone who is inexperienced, call us today and let us help!