What Does A Title Agency Do?
A title agency makes sure that the title to a piece of real estate are legitimate and without defect. After a thorough examination of public records a licensed agent issues title insurance for that property. The insurance protects the policyholder (lenders and owners) against disputes or lawsuits related to clear title.
These are the five steps a title agent will complete in your home closing process.
1. Title Search
Once we receive a signed contract, we begin the closing process by ordering payoff information, obtaining copies of surveys (if necessary) and inspections, and various other legal papers.
Our team also searches public records to find anything that may affect title of the property like deeds, wills, and divorce settlements.
2. Title Exam
We then examine the documents collected during the title search.
Occasionally there are mistakes in public records or debts owed against the property. The results of the title exam are delivered in a report (title commitment) to all interested parties. If there are issues, they must be resolved before settlement can occur.
Next, we prepare closing statements and then schedule your closing.
Every deal is unique so we carefully review the new lender’s instructions and requirements along with legal and loan documents to calculate the charges for closing.
Then we make sure everyone gets paid.
Once the seller signs the deed and closing affidavit, the buyer signs the new note and mortgage. As the escrow agent, we handle payoff of the property and ensure that real estate agents, attorneys, and other "interested parties."
5. Post ClosING
Our final step is to prepare title insurance policies and send them to the lender or buyer.
The transaction is reported to the IRS. We also digitally archive the transaction documents and submit them to public records in the county where the property is located.
HOW MUCH DOES TITLE INSURANCE COST?
Closing costs vary based on the type of transaction (purchase or refinance) and the terms of the deal.