Title agents play an essential role in all real estate transactions. They oversee various minute details that ensure smooth and legitimate handover of a property from one party to another from beginning to end.
If you’re looking to make a real estate transaction, it can help you understand the roles of different parties involved in the transaction. Most real estate agents recommend different title agencies to their customers. Once a customer chooses a title agency, it comes on board and begins its share of work to fulfill its responsibility.
The responsibilities of a title agency include:
Verification of Property Title
The main job of a title agency is to ensure that the title of the property is legitimate and the seller has the right to sell it. While most title transfers are smooth, sometimes unforeseen circumstances may arise. For example, court judgments, undiscovered inheritance claims, construction liens, and right of survivorship claims may affect the process.
A title agency Boca Raton will perform complete research to find any of the above-mentioned or other issues and resolve them. Hence preventing any issues that may arise before the transfer of property title is scheduled.
Guaranteeing Title Insurance
Once the title agency verifies the legitimacy of a real estate property title, it further protects the property title with title insurance. Title insurance ensures that nobody other than the seller can claim the property owner.
Title insurance can be either for the lender or the buyer. Title insurance on any property is dependent on the law required by the state. Some states require buyer’s insurance while some require lender’s insurance. However, lender and buyer both are always eligible to get title insurance. Title insurance covers losses due to unforeseen issues for the buyer or the lender, depending on the policy.
However, unforeseen issues are rare and unlikely in most real estate transactions. But as a buyer, you should always opt for buyer’s title insurance to secure your purchase.
Acting as Escrow Management
This responsibility highlights the importance of title agencies for the real estate industry. Title agencies usually have their escrow accounts utilized during real estate transactions. By acting as escrow, title agencies hold all the funds and become responsible for distributing these funds according to the settlement statement.
The presence of title agents at closing is as essential as that of buyers and sellers. Even in scenarios where a buyer or seller cannot be present, their respective title agents will always be present. The title agencies may even carry out the closing depending on the state.
Other parties may or may not be present at a real estate closing, including the realtor, lawyer, or anyone else that the buyer or seller may request to join. Title agency representatives explain the paperwork as a formality and ensure all parties have signed all the necessary papers. Once everyone signs all the necessary paperwork, the title agencies ensure the property handover to the buyer and transfer the property payment to the seller.
Another essential task that title agencies perform is managing real estate transaction paperwork. They begin this task by verifying title and filing for title insurance and soon take over the entire documentation process. Even when title agencies deal with other third parties such as banks, they manage all the important paperwork and keep all records organized and in check.
Title agencies are also responsible for recording the deed. A deed is a document of transfer of the property. It shows that you legally obtained the property from its previous owner by paying a certain amount. The amount is also noted in the deed. Most deeds also accompany a bill of sale. The bill of sale entails all personal items that are part of the property and are sold with it. The title agency also records mortgage, when applied, and tax declarations. Your title agency will also ensure recording and managing any other paperwork required by the County Land Records Office of your state.
Hence, you should always pick a well-known title agency to represent you and manage your paperwork as a real estate buyer. Professional and skilled title agents equipped with industry knowledge can make purchasing a real estate property an efficient, easier, and safer process for you. If you’re looking for a title agency Boca Raton, click here.