A title company is a professional entity that handles the paperwork and transactions involved in selling real estate. The title company represents the interests of the buyer, the seller and any other party involved in the sale, such as the mortgage lender. The title company makes sure that all necessary paperwork is properly completed and filed, and that all funds are properly transferred. Additionally, the title company insures the property against any legal claims that may arise from the sale. That’s why title companies play an essential role in ensuring real estate transactions run smoothly and efficiently.
The responsibilities of a title company are many, the most important being:
Analysis of property title to issue a title insurance commitment:
With this step, an investigation of the history of the tenancy is carried out and during this investigation, situations that require fixing before the purchase can be discovered. If there is no solution, it is decided whether to issue title insurance.
Carry out the closing of the transaction:
Preparing all legal documents; receive the necessary funds from the buyer or banking institution to make the necessary payments, acting as a fiduciary agent. This gives transparency to the transaction.
Finally, issue a property title insurance to the buyer and the financial institution, guaranteeing a clean title of any title defect.
By taking these steps, the buyer is given peace of mind that his investment is secured against any possible problems related to the ownership of his property.
