Escrow & Closing Services
Real Estate Litigation
Mentoring & Education
A title company will perform an extensive search of public records to determine whether any person, other than the seller, has any rights, liens, claims, or encumbrances on the property. Once all rights and claims are clearly determined, a title policy may be issued.
Once the title is found to be valid, the title company will issue a title insurance policy, which protects lenders or owners against claims or legal fees that may arise from disputes over the ownership of the property.
There are two main types of title insurance: owner's title insurance, which protects the property owner from title issues, and lender's title insurance, which protects the mortgage company.
What is a title?
A title is the legal right a person has to the ownership and possession of land. Being that it is possible that someone other than the owner has a prior legal claim to the property, if that prior claim can be established, that person can claim an interest in the property outright or make demands on the owner as to its use.
Closing & Escrow
Title companies often maintain escrow accounts (which hold the funds needed to close on the home) to ensure that this money is used for settlement and closing costs only, and may also conduct the closing on the home or property.
At closing, a settlement agent from the title company will bring all necessary documentation, explain it to the parties, collect closing costs and distribute funds. Finally, the title company will ensure that the new titles, deeds and other documents are filed with the appropriate entities.