What Does a Title Company Do

What Does a Title Company Do?

Fundamentally, what a Title Company does is make sure that the title to a property you intend to buy is valid, and then issue a title insurance policy for that property. A title insurance policy protects the owner and/or lender in the event that claims or lawsuits against the property arise after it has been purchased. Having title insurance is not only a good idea; often, it is a requirement you need to meet in order to be issued a mortgage.

Read on to learn what every potential homebuyer needs to know about title insurance and why choosing the right Title Company is crucial.

How Does a Title Company Confirm the Validity of a Title?

When you work with a Title Company to handle your residential real estate closing, the company makes sure the title to the property is legitimate in order for you to be confident that once you buy the property, you will become the rightful owner.

To ensure that the title to the property you intend to purchase is valid, your Title Company will conduct a title search, which is a thorough examination of the property records, to make sure that the seller is, in fact, the legal owner of the property and that no other individual could claim full or partial ownership.

During the title search, your Title Company will also look for any outstanding mortgages, judgments, liens, or unpaid taxes associated with the property you are buying, as well as any restrictions, leases, easements, or other issues that might affect your ownership rights.

What is Title Insurance?

Once the validity of the title to the property you are buying is confirmed, your Title Company will issue a title insurance policy on the property, which will protect you and your lender (in case you are issued a mortgage) against claims or lawsuits that may arise from disputes over the ownership of the property involving individuals who think they are the rightful owners of the property you have purchased. Without title insurance, you may find yourself having to pay debts of previous owners out of your pocket or worse, losing your property.

How Do You Choose a Title Company?

Firstly, look for a Title Company that has years of experience; always make sure to find out how many transactions they have handled. In addition, you must choose a Title Company that has great customer reviews online and does not have any complaints. To do this, you can contact the Better Business Bureau and they will provide information on whether the Title Company you are considering has had any complaints filed against it.

Although deciding which Title Company to go with can be highly overwhelming, a good way to narrow down your options is to focus on companies that have a legal background, like our Florida Title Company, Marina Title.

How Much Does a Title Company Charge for Their Services?

When it comes to issuing title insurance, the cost depends on the purchase price of the home, the size of the loan, and the location of the property, and it can vary greatly. However, the good news is Title Companies generally charge a one-time fee at closing instead of monthly payments.

How Often Does the Client Meet with the Title Company?

Generally, clients will meet with or talk to agents from their Title Company on multiple occasions. If your Title Company maintains an escrow account for your real estate transaction, your title agent may reach out to you on a regular basis to provide details on the activity of that account, and you will typically be able to contact your agent with questions.

If your Title Company handles your closing, a settlement agent will meet with you in person at that time and explain all the documents related to the settlement before you sign anything. Additionally, if something goes wrong in regards to the title to the property you are buying, you will likely meet with one of the agents of your Title Company to address the issue and plan a strategy to resolve it.

Reach out to Marina Title for more information about title searches, title insurance, and all the other services we provide. Call us today at (305) 901-5628 or send us an email to [email protected] to schedule an initial consultation with one of our title experts.