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Mid Atlantic Regional Abstract
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What Is The Role Of A Title Company:
When a property seller and a buyer enter into a formal purchase agreement, a title company usually plays a large role in the formal sale closing. Title companies help sellers transfer their titles, and they help buyers take possession of titles. Title companies also conduct title searches for any existing claims on properties, prepare title insurance for sellers, and maintain necessary accounts for sellers and buyers. Title companies play several key roles in common real estate transactions. Title companies generally act as the combined agent of the insurance company, the buyer, the seller, and other parties related to a real estate transaction, such as mortgage lenders. The title company reviews title issues insurance policies, facilitates closings, and files and records paperwork. A real estate title company conducts a title search. This makes sure that the seller has the legal right to sell the property. This search also shows there are unpaid taxes, real estate liens, or other issues that the buyer must be aware of. A clear title is a requirement for a real estate transaction to go properly.
Title Vs Deed
A deed is a legally binding document used to transfer to property from one owner to another. When you close on your home, this is a signed and witnessed before given to you as the new homeowner. It contains a description of the property so that everyone knows what is being transferred. A title is the actual piece of documentation that says you are the owner of the house. The person who has his name on the title will also sign documents related to the mortgage, shows if you are on loan as these documents are important.
When you begin looking for a new home, it's reasonable to assume that if someone is selling a property, they have the right to do so. A title company carries out an extensive search of property related to the home that you wish to buy. The company does this to ensure the seller has the legal right to sell the property and that there are no full, or partial claims which could affect your ownership.
The first thing that a title company will do is to perform a Title Search, which comes up with obstacles to the clean transfer of ownership. A title search looks for the following issues-
Once the initial search is complete, the real estate title company may ask for a Survey of the property to be carried out. This will be done to ensure that the boundaries of the property are where you believe them to be and that the structures of the land are entirely within those boundaries. As a part of the process, the company will also check if any neighboring land is clashing with your new property.
Once all of the research information has been obtained, and the real estate title company is satisfied they have discovered everything that they wanted to know, the company will go ahead and issue what is known as an Abstract Of The Title. The abstract is the summary of everything they have found during their title search. It contains the basic history of ownership and any issues that might have been discovered. The abstract is the first draft of the official title information and is issued so that the sale of the home can move forward.
Once the real estate title company has issued the abstract of the title, they will do some final cross-checking and come up with final documents, and then issue A Title Opinion Letter. This letter is a legally binding document and confirms, for all parties the information found in the title search is accurate. It usually contains the same information as the abstract.
Once the title opinion letter is issued, the real estate title company will also issue Title Insurance. This policy protects the buyer and the lender against any legal proceedings that may arise around the ownership of the property in the future if something is missed by the title company. All the lenders require the buyer to pay for their lender title insurance, and this cost is added to fees paid at the closing.
While the decision to purchase an owner's title insurance is up to you, there are many reasons why you should consider spending money on this-
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