Title insurance can be the most important part of the real estate transaction. Title insurance protects the buyer and lender from issues arising after closing related to the title of the subject property. If a party experiencing such an issue, the title company will defend the buyer and lender against the claim or reimburse the party for their expenses.

 

The title company does not represent either party in a transaction, but instead, acts as an intermediary and escrow company for the closing. In short, they make sure the property has clear title, all applicable expenses and fees are paid at closing, and all of the documents are completed and signed correctly. In normal real estate transactions, the seller has the obligation to purchase title insurance for the buyer as stated in the contract, and the buyer purchases title insurance for their lender if they are getting a mortgage.

 

Title Process:

 

1. Title is ordered once a contract is executed between the parties.

2. A title search is performed, and the resulting search packet is sent to the title agent to review and determine the    insurability of title.

3. If the buyer is getting a mortgage, the title company works with the lender to gather their information for the lender’s title policy.

4. A title commitment is prepared based on the search packet and distributed to the parties or their attorneys upon completion.

5. The closing department works on pre-closing issues and obtains required documentation in order to prepare for the closing.

6. The closing is scheduled and closing confirmation is sent to all parties and attorneys.  

7. The title company receives closing figures from the seller’s attorney and the closing instructions from the lender, if applicable.

8. Closing – All of the closing documents are signed, and the funds are received and distributed by the title agency.

9. The deed and mortgage are recorded, and the final title policies are issued by the title company.