Purchasing a property, especially in real estate is a big financial leap for anyone. This is why you would need to get all the help that you can get so you can land a good deal and avoid unnecessary hassles in the future.
A title company is one of the best choices in aides when it comes to buying a home. Why? Because they’ll do most of the dirty legal work that you might find hard to do on your own. They will look at every nook and cranny of the property that might turn out as a complication for you once you’ve already purchased the home and clean it, so you can have a good title.
Title company duties and how they can make your life easier
Tons of title companies have already made their mark in the real estate business, having helped both the sellers make a better sale and the buyers get the best worth of their money. How they do it is based on their duties.
Again, as said earlier, these companies will make your life and home buying process a lot easier by handling the important things that you will find difficult to do on your own. One of these duties is drafting an “abstract of title” of the property you’re about to purchase. In order to complete this ‘abstract’, they would need to do a little investigation and digging into legal and public documents, which might be tiring for a regular homebuyer to do.
This little investigation will look into the background of the property. As it has already been owned at least once or twice before, surely, there’ll be a good number of paper trails on it, and some might not be too desirable for any home buyer. The title company will look for those and have them fixed for your benefit.
The things a title company will look into will include possible financial and legal hassles the property can pose to the new owner. For example, the company will look at open mortgages on the deed, as well as judgments and other kinds of lien that will be troublesome for an uninformed new homeowner. It will also look at the property’s tax records and bring to attention any unpaid taxes. Then, it will also look at the legality of the sale, like whether the selling party is fully entitled to put the property on the market and whether the posing homeowners are the real deal. It will also dig in possible disputes and claims that can prohibit or limit your use of the property or even grant the said use to other people who are not the property’s owners.
After drafting the abstract, the title company will then see to it that the arrangement of the legal papers and documents for the closing of the transaction will move forward. It will issue the “title opinion letter” or the “Commitment of Title Insurance”, depending on whether title insurance is needed or asked for the property, and then wait for the papers to be furnished, set down all of the fees you’d need to settle, and make sure that all of the documents are completed and filed.