10144 W. Indiantown Rd
Jupiter, Florida 33478
Real Estate Closings
What does a title company do?
A title company makes sure that the title to a piece of real estate is legitimate and then issues title insurance for that property. Title insurance protects the lender and/or owner against lawsuits or claims against the property that result from disputes over the title. Title companies also often maintain escrow accounts these contain the funds needed to close on the home to ensure that this money is used only for settlement and closing costs, and may conduct the formal closing on the home. At the closing, a settlement agent from the title company will bring all the necessary documentation, explain it to the parties, collect closing costs and distribute monies. Finally, the title company will ensure that the new titles, deeds and other documents are filed with the appropriate entities.
How does a title company determine that a title is valid?
The title company makes sure a property title is legitimate, so that the buyer may be confident that once he buys a property, he is the rightful owner of the property. To ensure that the title is valid, the title company will do a title search, which is a thorough examination of property records to make sure that the person or company claiming to own the property does, in fact, legally own the property and that no one else could claim full or partial ownership of the property.
During the title search, the title company also looks for any outstanding mortgages, liens, judgments or unpaid taxes associated with the property, as well as any restrictions, easements, leases or other issues that might impact ownership. The title company may also require a property survey, which determines the boundaries of the plot of land that a home sits on, whether the home sits within those boundaries, whether there are any encroachments on the property by neighbors and any easements that may impact an ownership claim.
Before a title company issues title insurance, it will prepare an abstract of title, which is a short summary of what it found during the title search (basically, this is the history of the of the property). Then, it will issue a title opinion letter, which is a legal document that speaks to the validity of the title.
Title Insurance FAQ’S
A. Liens, judgements, open or unsatisfied mortgages, missing heirs, forgeries and unpaid taxes are some example of title defects that a proper search of the public records may uncover.
A. Rates are normally set by the Department of Insurance in individual states, based on the sales price or the mortgage amount. Please contact us for detailed information on a title quote.
A. Generally, local custom in the individual county determines whether the buyer or the seller will pay for the title insurance and other closing costs. However, who will pay is a negotiable issue and should be addressed in the contract for sale and purchase.