If you’ve ever purchased a home, chances are you’ve done it with a little help from a title company. Let’s explore what title companies do and why they are essential when purchasing a new home!
What is a title company’s purpose?
A title company’s main objectives are to confirm that the title to the piece of real estate you are purchasing is legitimate and to issue title insurance for the property. When you purchase a new home, you want to be the sole and rightful owner of it. Title companies will perform a title search prior to your settlement and thoroughly examine records to ensure that no one else can claim ownership of the property. These records include liens, unpaid taxes, and outstanding mortgages related to the property. Once it is confirmed that the title is valid, the homebuyer can move onto settlement.
What is title insurance?
Title insurance protects lenders and owners against legal fees and claims that arise from property ownership disputes. Owner’s title insurance protects you as the property owner from issues with the title, while lender’s title insurance protects the mortgage company involved in your home purchase.
What other services do title companies provide?
Title companies can also be involved with maintaining escrow accounts. These accounts contain funds necessary to close on a home. “Maintaining” in this case means ensuring that the money in the escrow account is used only for closing costs and settlement, as it is intended. Title companies can also be utilized when refinancing or retitling your home.
When does a title company get involved?
This all depends on how involved you want them! You may meet with a few different title companies before you purchase a home to decide which one to work with. If you would like them to maintain the escrow account for you, they will contact you with account information throughout the home-buying process. If the title company is simply there to handle your closing, you will meet with an agent at settlement. As long as there are no issues in regards to the title, the title company’s involvement ends there.
Thinking about purchasing a new home? Finding a professional and reliable title company is essential to the home-buying process. Armour Settlement Services, LLC is a title and escrow company servicing realtors, lenders, and homeowners in Maryland and throughout the country. Contact us today to see how we can help!