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What is the role of the title company in the process of buying / selling a property?

After you purchase a property, the end of the transaction he ownership of the property is transferred to the buyer through a legal term referred to as a title. A title-closing company has the responsibility for making sure that all the documents related to the ownership and transfer of a property are legitimate and in order before the real estate transactions is executed. During this process, the title company also provides an agent to oversee the closing process. Title companies perform functions related to the sale of a property and act as the combined agent of those involved in the process of purchasing a property such as the insurance company, the buyer, the seller, and any other parties related to the real estate transaction, such as mortgage lenders. The title company has a responsibility to thoroughly reviews title (search), issues insurance policies (title insurance), and facilitates closings, and files and records paperwork.

For both the seller and buyer the title company makes a title search to ensure the seller has the legal right to sell the property in order to transfer ownership, and that there are no other burdens (such as liens, mortgages etc.) or property line issues that could arise and prevent the buyer from taking full possession/ownership. For the buyer, a title company can offer title insurance, which protects their investment (the mortgage) and protects them against loss, ensuring coverage should a title problem arise.

Title companies also act as escrow officers in connection with real estate transactions and an officer holds documents or money as a part of the transaction on behalf of the buyer and seller according to the instructions of the parties in the sale. As the settlement agents, at the property closing, title agents produce all necessary funding documents, tax certificates, title insurance policies and the like. At a real estate closing, title company agents also collect buyer and seller closing costs and distribute commission checks. In summary the title company steps in as the intermediary between all parties to record the necessary legal documents, and ultimately finalize the purchase or sale of a real estate property.

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