Title companies serve as a vital link in the chain of the process of buying a house. Once you have an accepted offer on the home you want to purchase, then the title company will deposit your good faith deposit into a special escrow account, conduct a title search, issue a title insurance policy and then help get your purchase documents signed. Since it is important you understand the vital role a title company plays in the purchase of your home, here is more information on each of their responsibilities:
Creation and Management of the Escrow Bank Account
Both your good faith deposit on the house you are purchasing and the funds to pay the seller are held in a bank escrow account. This account is setup and managed by the title company. The title company controls all of the money going into the account and out of it.
Search the Title of the Home and the Seller's Recorded Documents
The title company's staff will conduct a title search on the property to determine if there are any attached liens or other problems with the chain of ownership of the property. The search is conducted at the local courthouse by a professional title investigator who is specially trained.
Issuance of a Title Insurance Policy
Once the title search has been completed and if no issues are found with the property's title, then the title company will issue a title insurance policy. The title insurance is meant to protect your interest as the buyer. For example, suppose the property you want to buy has a large tax lien on it that no one knows about. If the lien is not discovered during the title search, then the title insurance policy issued to you covers your investment. Without the title insurance, the local tax collector could foreclose on your property for the tax lien and you would lose all of your money.
An Important Note About Working with a Title Company
Finally, it is important you understand the title company is working for you to protect your interests. When your home's escrow closes and you go sign all of the papers at the title company, you will pay a large fee to them for the work they have done on your behalf. Since you are paying for the title company's services, you should feel comfortable contacting them with any questions you may have about the status of the escrow, closing, or anything else you are curious about. In fact, it is advisable to contact the title company at least a week before escrow is scheduled to close just to verify there is no other documents or information that the title company needs from you.
Contact a company like Whitford Land Transfer for more information and assistance.