If you are selling or buying a home, a reliable title company will be your best friend during the process. These specialized business offer services that make real estate transactions quicker, easier, and safer for all parties involved. Here are three reasons why title companies are important.
Make Sure Titles are Valid
Title companies ensure titles to particular pieces of real estate are valid. These businesses carefully search property records using specialized procedures to verify ownership and financial status of a piece of property. If you want to buy a home in Jacksonville Beach, FL, an experienced title company jacksonville beach facilitates the process.
When you hire a title company, it usually produces an abstract of title, which is a detailed history of ownership, liens, unpaid taxes, judgments, and mortgages on the real estate in which you are interested. After this careful examination, title companies generally produce a report, often called a title opinion letter, describing any problems and explaining what should be done for a valid title to be issued.
Issue Title Insurance
Title companies are also responsible for issuing title insurance for real estate. This is protection against legal claims and lawsuits stemming from title disputes over a particular property. There are two general types of title insurance.
- Owner’s title insurance—Defends property owners against title disputes
- Lender’s title insurance—Guards the interests of mortgage companies
As a home buyer, it is safest to carry both types of title insurance. You, as the buyer, may be responsible for purchasing the policies, or, depending on the area, the seller may be required to buy them.
Maintain Escrow Accounts
Title companies usually maintain escrow accounts for the parties involved in real estate transactions. These specialized accounts hold money specifically designated for closing costs on a home. Settlement agents from title companies may also handle the formal procedure for closing on the home.
Title companies play an important role in real estate transactions. Hiring an experienced, reputable title company makes the complicated process of buying a house quicker, easier, and financially safer.