Title Companies play a quiet role in a Real Estate transaction. However, we handle one of the most delicate parts of the process. We make sure that the sellers listed on the contract owns the property being sold and we research if there are any liens or judgments against the sellers that are attached to the property being purchased. We coordinate with all parties involved in the settlement and we look for any potential problems in the transactions. We then clear any “title defects” in a timely manner. At the settlement table we collect funds from parties involved, transfer ownership, and issue title insurance for both the purchaser and lender. The title company prepares and records the Deed, Deed of Trust and all necessary documents that must be recorded.
The title company does not represent the buyer, seller or the lender in the manner that an attorney would represent a client. The title company is, in effect, legally neutral. The title company’s task is to transfer the property in compliance with the terms of the contract and the requirements of law and to close the loan in conformity with the instruction of the lender.
There are two type of title insurance. The Lender’s policy is a separate policy which protects the lender’s interest in the property, up to the outstanding balance of the buyer’s mortgage. The loan policy protects the lenders against loss due to unknown title defects. This policy protects only the lender’s interest; it does not protect the buyer. The Owner’s policy protects the owners against loss due to any “hidden hazard” that can result in a claim against your ownership. Owner’s coverage provides for legal defense of any liability or loss that may arise.
For as long as you or your heirs retain an interest in the property, and in some cases, even beyond.
By law the consumer has the right to choose the title company of choice to conduct your settlement.
The title examination performed by the title company is thorough, but limited to public records. Suppose a previous owner recorded his or her marital status incorrectly, resulting in a possible claim by a legal spouse. Or a prior owner of your property recorded a forged deed. There would be no way for the title company to know that this document was a fake. At some point, the rightful owner could come forward to claim ownership of the property. Without title insurance, your investment is at risk.
