20 Aug Roles Played By A Real Estate Title Company
Are you aware about the role of an estate title company in real estate transactions? Title companies are indispensable part of any real estate transaction. It might not be easy to handle real estate transactions without them. Whether it is buying or selling any property, refinancing against properties with the purpose of lowering mortgage repayments or lowering interest rates or providing escrow services – the title company can do it all. The process of real estate transaction that comprises of a number of commercial and legal activities is quite complex and requires the expertise of real estate title companies to navigate clients smoothly through the process so as to complete the deal successfully. The title company plays the role of a facilitator engaged in serving the interests of the seller, the buyer, the lenders, insurance companies and other stakeholders of any real estate transaction.
The role of the real estate title Company in Rockville Maryland includes title reviews, issuance of insurance policies, facilitating closings and all relevant paperwork and records.
The title of the property that is being dealt with has to be scrutinized to check its correctness with respect to the present holder and ascertain the history of previous title holders. The condition of the property and its present status is revealed through search of public records that is undertaken by the title company and the information is shared with all stakeholders of the property. The information is collated in the form of a preliminary report also known as commitment for title insurance and circulated to all parties. Title information research that is required for foreclosures and associated legal action related to the property also comes under the purview of the title company.
The role of an escrow officer can be played by the title company in real estate transactions. An escrow officer is an arbitrator who is empowered by all concerned parties – buyers, sellers and lenders in a real estate transaction, to deal in and hold documents and money that is involved in the transaction and act according to the instructions of all parties. An escrow officer has to remain completely neutral to all stakeholders and act with professional ethics to discharge his responsibilities without any bias.
Issuer of Insurance
Title companies represent insurance companies and issue insurance policies pertaining to the title (title insurance) on behalf of insurance companies. Acting like an agent, the title company earns a commission for issuing title insurance policies. The risk related to the property rests on the insurance company and not on the title company. This service is aimed at speeding up transaction.
The role of a closing agent in real estate transaction is to facilitate closing of transaction. The title company acts as an agent for all stakeholders in the transaction and co-ordinates all activities that are necessary to drive the transaction to a successful closure that culminates in issuance of the title in favor of the buyer. The documents that are created and signed by all parties to form a part of the title deed are recorded in the land records office.