What Is a Title Company?
A title company verifies that someone who's proclaiming to be an owner of land has the right to sell that land to a buyer through the process of a title review. Once the review is completed, verification is secured by issuing title insurance which protects both the mortgage company and the owner in case a claim is brought against either.
Steps Before Closing
Before closing on a property, there a number a steps a title company must first take in order to ensure the protection of the client.
Title Search
The title company will first perform a title search. This provides an opportunity to look at and clear up any outstanding mortgages or loans that may be in place, any existing liens on the property, or any issues with judgments or taxes on the property.
Abstract
An abstract outlines one’s ownership history. Not only will it show the dates properties were bought and sold, but it also provides information on inheritances, litigation, tax sales, etc. All of these factors assist with making a determination about whether there is good title on the property.
Title Opinion
Once the title company looks at all those factors, they then prepare what is called a title opinion. This document is used to decide if the owner has a valid title and whether the title company recommends title insurance being provided as verification of this ownership in an effort to protect both the mortgager and buyer of the property.
Closing Process
After determining a free and clear title, the title company then start the process of closing. This process consists of preparing documents and in some cases, the company acting as a notary when the clients sign documents on closing day. They also may act as an escrow officer which includes taking responsibility of the distribution of funds to the appropriate parties in a closing transaction. In some instances, the mortgage officer or the realtor may recommend a title company for the client, however, it should be noted that by law you have the right to specify who you want to act as your title company.
There are a lot more details that could go into the process, and every situation is unique. But if you are wondering what title companies are really doing and how they benefit you, they protect your assets and they protect you when making a huge purchase or investment in property. Look at it as a type of insurance that is highly encouraged and in most cases, required if you're doing any type of mortgage on the property that you're purchasing.
Why Guice Law Co.?
What makes us different is that we pride ourselves on offering a luxury experience and mutual benefit to all parties involved. We ensure that our clients receive an awesome experience and peace of mind from start to finish by operating with integrity, utilizing due diligence, and striving to provide the best protection as you are entering into this new investment. We also believe that ultimately, closing on a new property is a big deal! No matter the size of your property, amount paid, or location, we want to celebrate you by offering a customized experience that exudes the love and excitement you should feel about your day.
Guice Law Co. believes in a customer-first, customer-focused approach. This means that we put your needs first while efficiently performing our duties. We understand the importance of acting with a sense of urgency, so you can trust us to get the deal done in a timely manner.
Stay Connected!
We will be offering a ton of educational information about the whole process of real estate titles and closings so that you are fully informed as you enter into buying your next property. If you have any questions, if you are a buyer or real estate agent hoping to partner with us, do not hesitate to send us an email to schedule a time to chat at hello@guicelaw.co.
Please share this information with others who may be interested in learning more about the title process. Also stay connected by following us on our social platforms @guicelawco. When it's time for you to make that big leap, we hope you keep us in mind as your title company and closing attorney!