What does a title company do? A break down of the the closing process.
Everything regarding a real estate transaction comes together in one place at the closing table. Your title company is who coordinates and oversees that coming together and makes sure every i has been dotted and every t has been crossed. They also make sure everyone is paid and all documents are properly recorded. That is why choosing a title company at Lake of the Ozarks is an especially important part of the home buying process.
Title Search and Title Report.
The whole process starts when a buyer and seller have a signed contract brought to the title company. Right away, the title company will start issuing orders for obtaining specific information regarding taxes, loans, surveys, HOA fees, inspections, etc. and will order a title search.
A title search is conducted to discover any issues that could affect the buyers right to ownership. This is when legal ownership is verified and any debts against the property are examined. The documents that are involved could include divorce liens, leases, unpaid taxes, and easements in public record which may or may not be accurate, as well as divorce settlements, wills and other paperwork related to ownership.
If anything is revealed that could challenge the buyer’s future property rights, your title company will get to work correcting those issues. They will make sure everything in record is accurate, and that anything that is owed is paid in the course of the transaction and not left for the new buyer to discover and take care of after the sale. Once these issues have been thoroughly vetted, a title report will be prepared.
Title insurance will be issued once all encumbrances to the property being purchased have been resolved. The mortgage lender will require a title insurance policy to protect their investment just in case something unknown pops up later. The buyer also has the option to purchase a buyer’s title policy to protect their investment as well. While the buyer’s policy is not required, it is a one-time payment that should not be omitted. Why? Imagine the house you bought was inherited by the seller from a parent. But the seller has a sibling that is not on the title that later claims to have the right to own half of the house that was sold to you by their sibling. Without title insurance, that is a nightmare the buyer has to face alone which may end up being very costly and devastating.
Escrow and Closing.
Another extremely important task that your title agency takes care of is the drawing up and coordination of all contracts and legal documents. They are in charge of making sure everything is signed and notarized by all relevant parties to the transaction. They will be responsible for holding any funds in escrow and dispersing them to the right parties at the right time to ensure everyone involved receives exactly what has been agreed upon. Then they will record all the documents in the county where the purchased property is located and issue the title insurance policy to the lender and the buyer.
As you can see, most of the details of closing a real estate transaction at the Lake of the Ozarks are taken care of without the buyers and sellers even being aware of it. But that doesn’t mean those details are insignificant or routine. In fact, finding a title company with the right experience could be as important as finding the right house. When it is time to buy that perfect home, choose a title company at Lake of the Ozarks you can trust to ensure your property rights and bring you peace of mind for you and your heirs as long as you own your home. At Arrowhead title, we would be honored to take care of your real estate transaction, because we know for a fact that accuracy really does matter!