Sunday, September 24, 2017

What Is a Title Company?

A title company oversees the interests of, and is responsible to, all people involved in a real estate settlement - the buyer, seller, lender and the real estate agent. Prior to the settlement, the title company examines the history of the property to make sure that the title is free of any liens or claims. The title company organizes the transfer of money and property at the time of closing. At the settlement table, the title company collects and distributes funds from the transaction, transfers ownership of the property, and issues title insurance.

Title Insurance protects the property owner and the lending institution that holds your mortgage from unanticipated claims that may come up against your property. Title insurance rates are set by state insurance commissions and are based on the purchase price of your property and the loan amount.

Most lenders will require that you purchase a lender's title insurance policy. This protects their investment in your property. You are not required to purchase an owner's policy; however, your one-time payment will protect your property for as long as you own it.