A title company plays a crucial part in buying and selling of properties. They make sure that the title of a piece of real estate is legitimate and on the basis of that issue title insurance of the same. It protects both the lender and/or owner against lawsuits in case of claims against the alleged property due to a dispute over the title.
Further, title companies are responsible for maintaining escrow accounts which contain funds required to close on the home. A real-estate agent from the title company is in charge of the settlement between parties and ensures new titles, deeds, and other relevant documents are filed properly with appropriate entities.
Today, many real estate transactions are completed with the help of a title company. It works as a third-party in the real estate that handles documentation involved in buying or selling properties.
This post further explains some top reasons to hire a title company. Read on!
To Provide Title Insurance
One of the main reason to hire a title company is they provide title insurance. A title company ensures buyers that the property they are purchasing is risk-free and no one later will come later to claim the same. For this, what a title company do, they do a thorough check of a property’s records to ensure purchaser about no claims pending or anything outstanding that may later create an obstacle in the process or later haunt the buyer and/or seller.
To Ensure Smooth Transactions
A title company plays a proactive role throughout the course of buying or selling a property to ensure all transactions during the process go smooth and correct. They are responsible for checking whether there are any outstanding taxes, liens, or claims against the property or its owner so that every transaction happens flawlessly, with no nasty surprises.
To Provide Escrow Services
One of the prime functions of a title company is they provide escrow services. It is critical from seller’s point of view. It ensures the mortgage is entirely paid off and all exchanges are accomplished before buyer take ownership and possess the property. In this scenario, it is Title Company that handles all money.
To Handle the Entire Documentation Process
One of the chief reasons to hire a title company is to let them manage the entire documentation process. This process includes all financial aspects of the sale. Further, they also make sure that everything is recorded and executed correctly in a legal manner.
No doubt the reasons above explain that hiring a title company is worth the cost if you are contemplating to buy or sell a property.