What A Title Company Does Before Issuing Title Insurance

What A Title Company Does Before Issuing Title Insurance

Jul 28, 2021, 8:03:24 AM Business

When you buy a piece of land, one of the players you’ll deal with in the process is the boca real estate title insurance agency. The role of a title company is to affirm that the title to the real estate is legitimately given to the buyer. Fundamentally, they make sure that a seller has the rights to sell the place to a buyer. Once a title insurance company performs this verification, it will back that assurance with title insurance, which assists the lender or owner in the event that someone comes along and makes a claim to the property in near future.

 

The title insurance agency also may be accountable for conducting the closing. It will keep up escrow accounts where your closing costs are kept until the day you close your mortgage loan. In some cases, this institution that handles closing and the company dealing with title and title insurance will be entirely different.


Let us go through what a boca real estate title insurance agency does and take you through the process. The first thing a title company will do is perform a  real estate title search, which entails looking for possible obstacles to the clean transferal of ownership. The thing that most often immediately comes to mind is whether other people have possession in or rights to the piece of land or property, but a title search also looks for the mentioned issues:


1. Outstanding Mortgages: Unless the previous piece of land owned is free and clear, the current homeowner will have a mortgage tied to the real estate property. This will need to be paid off during  closing so that the title can be transferred to you.


2.  Existing Liens: You could have a lien on the real estate property for other things such as home equity line of credit or a loan to pay of. These will need to be paid off or otherwise removed before you can settle down the transaction.


3. Judgments Or Unpaid Tax Liens: If the former land owner has some unfulfilled responsibility, they can be taken to court and the complaining party can win over the judgment that stays with the property until the person is paid off clearly. One scenario where this could come up in homeowner ship is if a contractor wasn’t paid for work that was finished. If the taxing authority places a lien on the property for outstanding taxes, they can collect proceeds in the occurrence of a sale. Both issues must be taken good care of.


The bottom line is that when you shop for title insurance policy, you should know what you are getting out of the process.  For these reasons, always consult a title company while making the purchase.

Published by Tim Scott

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