Finding the perfect home whether it is a home for sale in Locust Grove, Culpeper, or elsewhere and getting it under contract is just the beginning of the home buying process. A title company’s role in the home buying and selling process is an important one. Most of the time, first time home buyers and sellers see the title company as the place where they go to sign their closing documents. However, title companies do so much more work behind the scenes.
Title Company Basics
When you ratify a contract, your Realtor® will share the contract with a title company. The title company will contact you asking for some basic information. They can also hold your earnest money deposit in an escrow account. The title company’s main responsibility is to make sure that the ownership of the property can be legitimately given from the seller to the buyer.
Before You Close
Since the title company wants to make sure that the seller actually has the right to sell the property they will perform a title search. A title search looks for any roadblocks that could prevent a clean transfer of title. Sometimes there could be additional owners on a title (like a relative that also inherited a property long ago) that are not involved in the current transaction and need to be, a lien on the property could appear that would need to be resolved before closing, or unpaid HOA dues. Finding these roadblocks before closing gives the sellers time to resolve the issues.
After You Close
If the title company finds that there are no issues with ownership or the issues have been resolved, then title insurance will be issued. Lenders require buyers to have it. Title insurance protects the buyer from any other individual making a claim to the property after they have purchased it. If any such claim arises, the insurance protects the buyers.
The title company will also hand the paperwork on closing day. They will make sure that the buyers or sellers properly sign the documents and explain any questions that could arise.
