What Does a Title Company Do Anyway?

Handshake after at title transaction

What does a title company do? A lot, actually. Title companies do the behind-the-scenes work on real estate deals, making sure that the property is in good legal and financial standing before you purchase it. Title Companies do a lot of technical work that protects you, whether you’re selling or buying.

Title Companies Do Important Research

When buying or selling a home, there are lots of issues that could expose you to financial risk.  Inaccuracies (intentional or otherwise) in wills, mortgages, or title documents can put your ownership of the property in jeopardy. Sometimes there can be allegations that a past co-owner did not consent to the sale due to an undisclosed divorce, fraud, or simple error. Past liens on the property could even be a liability for you. That’s where title companies come in.

Title Companies Protect Both Parties in a Transaction

They make sure the seller has the right to sell. Title companies protect both the buyer and the seller by researching and investigating these issues so that both parties are protected financially. Title companies serve as an intermediary between buyer and seller, making sure both parties are getting what they expect. If the seller is hiding problems, the title company will find them.

Title Companies Do Other Important Services Too

Title companies can insure against these problems, so that you’re covered in case something comes up. They also do escrow closings, where they make sure the deal is made according to regulatory standards, so that when you sign a contract, you’re in top shape. They can even help close on a refinance for your home. The terms of a loan can be confusing, so a title company will help explain the terms in a simple and easy to understand way. Another area that a title company can assist you with is construction disbursement, which is handling the funds for construction jobs, so that only work that has been completed is paid for, giving peace of mind to both lender and borrower.

You Can Choose Your Title Company

Not all title companies are created equal, and for such a lengthy, technical process, it’s important for you to find an experienced and local company that can professionally address your needs. Monarch Title is happy to assist in you in making this process hassle-free so that you can delight in your new property!