The Vital Role of the Title Company in Real Estate Transactions

Published by julia | Filed under Buyer / Seller Tips, Listings, Real Estate, Shout Outs

If this is your first real estate transaction, you may be a bit confused, and even overwhelmed, by all the paperwork and people you have to deal with. No one is ever prepared for how complicated buying a house can be their first time around. However, each and every aspect of the process is vital to you getting possession of your new home. One of the final pieces in the puzzle, yet one of the most important, is the title company. The title company performs a few different functions in getting you to closing, but one thing is clear—without them, your home would remain just a dream in your mind and not a reality.

Some states require you to use a real estate attorney for the closing, while others are title company states. If you live in a title company state, you should know that the company you select is basically doing the job the attorney would be doing in another state. The company employees will be carefully examining the title to the home, verifying ownership (to make sure the person selling it has a legal right to), and looking to see if there are any encumbrances on the title that could hold up the closing. You definitely want this work to be performed, as there’s few things worse than buying a home, moving in and getting settled, only to find the house isn’t really yours because of an encumbrance or because the person selling it wasn’t the legal owner.

The title company is there to give you peace of mind. When you hire one, you’ll know without a doubt that the house you’re buying will really be yours, completely, and that no one can take it from you later. You’ll also be assured that the closing will go off without a hitch. If anything suspicious comes up during the process leading up to closing, the title company will jump in and handle it for you, so you don’t have to worry. It’s like having your own personal real estate advocate.

The title company also takes care of any legal aspects of the sale to make sure everything is iron-clad. They’ll provide the exact paperwork for you to sign at the precise moment you need to sign it, and they’ll explain anything about the legal process of buying a home that you want to know. While your state may require you to use a title company (and closings usually take place there), you’d want to use one anyway. They’re there to protect you in a real estate transaction, and that’s an invaluable service.