When buying or selling real estate, you may come across the term “title company”. But, what exactly is a title company? And why is it so important in a real estate transaction? A title company plays an important role in helping to protect all parties involved in the sale of real estate. Let’s take a closer look at what a title company does and why they are such an important part of the real estate process.
What Does a Title Company Do?
A title company serves as an intermediary between buyers, sellers and lenders during the closing process. Their primary job is to review public records and ensure that there are no liens or any other legal issues against the property you are either buying or selling. They also make sure that the deed has been properly transferred from one party to another and that all documents related to the purchase agreement have been executed properly. The title company will also handle all of the paperwork necessary for transferring title from one owner to another, including recording deeds, mortgages, liens, restrictions, etc.
The Importance of Title Insurance
Title companies also provide title insurance which helps protect both buyers and sellers from many potential problems that could arise after closing on a home or other piece of real estate. For example, if someone else claims ownership on your property due to an issue with how the deed was transferred (such as forged signatures), then title insurance can help protect you from having to pay for any costs associated with resolving such disputes. It can also cover losses due to inaccurate survey data or unknown easements that may have been granted prior to your purchase.
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