Real Estate Closings - What Role Does My Title Company Play?
A real estate transaction can be a complex exchange involving many parties and multiple legal issues. That is why the closing itself is handled by an experienced neutral party. At Arrowhead Title we have been in business since 1984 handling all aspects of real estate closings at the Lake of the Ozarks. To us, the process is familiar, but to most of our clients, it can be intimidating. We are big believers in educating our clients, so in this week’s blog, we wanted to talk about the role a title company will play in your real estate closing.
Research
The process will start with your title company doing a deep
dive into public records to determine the history of the property in the form
of a title search. This is very
important and thorough research to determine things like:
-Easements or restrictions on the property
-Unpaid assessments or real estate taxes
-Outstanding mortgages or liens
-Outstanding judgements
-And ultimately, the seller’s legal rights to the property
If any clouds are discovered in a title search, the title company will correct things like errors in public record and resolve any issues that are correctable. Other issues may require negotiating with the parties involved or affected to arrive at some mutually agreeable solution. Doing so will allow you to proceed with your closing free and clear of any known problems. It is essential to find these issues early in the closing process because it can take time to resolve issues once they are found. Getting started early will help you avoid closing delays and post-closing issues that could leave you in the lurch.
Title Insurance
Once the title history has been analyzed and documented, and
corrections are made and issues are resolved, your title company will typically
be ready to issue a title commitment.
This is just what it sounds like, a commitment by the title company to
issue title insurance upon the closing of the real estate transaction. Lenders will require this be in place before
committing to funding the purchase. The
purpose of the title insurance policy is to protect your property ownership
rights in the event that any issues or discrepancies arise after closing. The thorough and accurate research conducted
by your title company will help clarify any ownership disputes and resolve them
quickly, completely and effectively. The
types of disputes that may arise including things like errors in public
records, missing or forged signatures on documents, unknown heirs or ex-spouses
claiming ownership rights, etc.
The title insurance policy is good for as long as you (and your heirs) own the property or until you refinance. Your lender will require you to have a lender’s policy in place in order to close. The lender’s policy protects the ownership rights of your lender, not you. To protect YOUR interest, you will want to purchase an owner’s policy as well. Even though an owner’s policy is optional (i.e. not required), it is not something you should neglect getting as you are making one of the biggest investments in your life.
Settlement & Escrow
This is where all the complicated elements, and various
interested parties, all come together and make the transaction happen. As you can imagine it is critical that every
single detail coming up to that point is accurate, and that all paperwork is
100% correct and in order. The value of
a neutral, non-biased third party who is experienced with real estate closings
and the local market cannot be underestimated.
Arrowhead Title is that experienced party and we act as the
gatekeeper receiving all monies that will be exchanged, guaranteeing that
everyone gets paid what they should, nothing more and nothing less. This is all
meticulously documented so there is no doubt that all obligations have been met
and ownership rights are properly transferred.
Closing day is an exciting day, but also one that can cause
information overload. At Arrowhead Title we try to make that day easier for our clients not only with
professionalism and experience, but also by educating our them along the way. We understand how important the transaction is
to you and we are dedicated to providing the most prompt and accurate title and settlement service at the Lake of the Ozarks. If you are looking to buy a home at the Lake of the Ozarks, remember Arrowhead Title, where accuracy really
does matter!
The Lake of the Ozarks' Most Trusted Title Company
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