 The Role of the Title Company
Now
that you have decided to buy
a home, what happens between now and the
time
you legally own it? The next
step
is to obtain title for the property
from
the title company. A title gives
the Seller the right to possess and
use
the property. But before receiving
title, the title company will need to
complete
the following:
Earnest
money
To show the Seller and his
agent that you are a serious Buyer,
you will be asked to give the title
company Seller or Realtor a deposit
called earnest money. If the sale
goes through, the earnest money is
applied toward the down payment. If
the sale falls through, the earnest
money will not be given back unless
it is stated in the offer to purchase
that it is refundable.
Title search
A title search is a thorough
check of the records concerning the
property. It is performed to verify
the Seller’s right to change
ownership. A title search will uncover
any demands, faults, liens and other
privileges or restrictions on the
property.
Document
preparation
Appropriate forms are prepared
for settlement.
Settlement
Many events happen during
settlement. The Seller signs the deed,
the Buyer signs the new mortgage,
the old loan is paid off and the new
loan is established. The Seller, real
estate professionals, attorneys, surveyors
and others performing services for
the parties are paid. Title insurance
policies are then delivered to the
Buyer and their Lender.
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