When you buy a piece of property, whether it’s your first home or it’s your 10th investment property in Nashville, there are a lot of moving pieces. It can be overwhelming, not to mention financially irresponsible, not to work with a reputable title company for your property closing services.
Your title company plays an important role in the closing process and adds a layer of protection and peace of mind to an already complex real estate transaction. When you work with a title company to perform title services, you can rest assured that your property is, indeed, yours.
So what, exactly, does a title company do? At the point where a buyer makes an offer and the seller accepts, the title company steps up and does the heavy lifting. Think of your title company as the port through which information flows. The title company serves as the intermediary between all parties to record legal documents and finalize the purchase or sale of real estate.
Who Do Title Companies Work With?
Many title companies, like Rochford Law & Real Estate Title, are attorney-driven companies that work for both commercial and residential buyers and sellers. Typically, title professionals interact with real estate agents, lenders, banking institutions, homeowners insurance companies, surveying companies, homeowners associations, property management companies, and here in Davidson County, the Register of Deeds.
What Does a Title Company Do?
Offers Title Services
Quite simply, a title company ensures that the title to the piece of property you’re thinking about purchasing (or selling) is legitimate. They’ll look for any potential issues with the title by making sure that the person claiming to own the property in question actually owns the property, that there are no outstanding mortgages, liens, judgments, or unpaid taxes, and they’ll also make sure that the survey is clear, informative, and covers everything that’s being sold. Once they’ve determined that the title to the piece of real estate is legitimate, they issue title insurance for that property. The insurance protects the lender and/or property owner against any potential lawsuits or claims against the property.
Provides Title Insurance
Title insurance protects you from anything going haywire with your deed. Many lenders require it but make sure that you invest in a policy that covers your interests as well as those of the lender. Owner’s title insurance protects the property owner while lender’s title insurance protects only the interests of the mortgage company. Title insurance protects against fraud, forgery, capacity, legal authority, spousal claims, and erroneous property descriptions. To learn more about the importance of title insurance, check out our post, “Your Crash Course On Title Insurance.”
Often title companies also offer closing services. Closing, of course, is the exciting final step to any exchange of property. To prevent closing delays a title company makes sure that title research is performed well in advance of the closing date, they’ll order payoffs of existing mortgages and liens, collect taxes and assessments, and find and secure releases of any prior liens on the property.
A title company can also maintain escrow accounts, serving as the closing agent and fiduciary agent. This ensures that the funds are used only for settlement and related closing costs. After closing the title company makes sure that the new deed and other documentation is recorded appropriately.
How Do Title Companies Help With Closing?
For many investors, closing is a big deal and a big day. Working with a title company helps buyers and sellers know what to expect at every turn. Here’s what it looks like:
You’ll Arrive at Your Closing Appointment
Expect your real estate agent and your title professional to be there. The seller and/or the seller’s real estate agent may also be present.
You’ll Autograph Lots of Documents
You’ll sign documentation that may include your Closing Disclosure, Promissory Note, Mortgage, Deed of Trust, Deed, and in the case of refinancing, a Right to Cancel.
They’ll Provide Notary Services As Needed
Any documentation that needs to be verified and notarized will be handled at this time.
Warm Handshakes and Congratulations All Around
Your title company will celebrate with you and will make sure that you’re leaving with everything you need in hand.
How Do You Pick a Great Title Company?
Aks for recommendations from friends and family. You can also ask your real estate agent or lender for recommendations. Once you have a few solid recommendations, do your homework and make sure that the companies are well-respected and have a good online rating . Knowing what to look for in a title company is an important part of the process! Ideally, you’ll find a title company with years of experience in title research, facilitating closings, and real estate law.
For more information about our legal services, give us a call 615.269.7676.