The Essential Services Of The Real Estate Title Insurance Company

Oct 4 07:51 2011 Chris Harmen Print This Article

Real estate title companies play an important role in real estate transactions. From performing title exams and handling escrow funds to providing title insurance and notary services, title companies are crucial to a successful closing.

Veteran homebuyers are familiar with real estate title companies and the role they play in every real estate transaction,Guest Posting but inexperienced homebuyers may wonder what, exactly, is the role of the title company.

The Real Estate Title Company: Facilitator and Investigator

Real estate title companies fill the important role of facilitating a successful closing on real estate property. Sometimes referred to as title insurance agencies, these companies oversee the transfer of interests, ownership and funds during a real estate closing. They may also serve as the escrow agent, holding the buyer's escrow payment until the closing is complete. It is not unusual for the actual closing to take place at the title agency office since it represents neutral ground for all parties involved in the transaction.

Besides facilitating, one of the most important functions of a title agency is to conduct a detailed search of the public record before the property is closed on. This is referred to as a title search or title examination and it is done to verify that the property is legally available for sale with no liens, encumbrances, easements or judgments against it.

In addition to conducting the title exam, real estate title companies can provide buyers with title insurance. Title insurance is an indemnity insurance policy that protects the new homeowner and the mortgage lender from unforeseen claims against the property due to activities that occurred prior to their taking ownership of the property. Two policies are typically issued: a Lender's Policy to protect the mortgage lender and an Owner's Policy to protect the buyer. The insurance protects the new owner and the lender from financial loss and provides for payment of legal costs due to claims that arise as a result of title problems. Title insurance policies are a one-time only purchase that is paid for at the closing.

Safeguarding Everyone's Interests

Real estate title companies are impartial service providers to everyone involved in the transaction. From realtors and buyers to sellers and mortgage lenders, the title company does not have a personal interest in the property. This impartiality ensures that a legitimate title search is conducted and that each party involved in the transaction receives the same treatment.

A title agent's job is to ensure that all paperwork is in order, that the people involved are who they say they are and that no money changes hands until all of the necessary documents and paperwork have been signed. This safeguards everyone's interest in the property. The buyer and lender have the assurance that they are purchasing a clean title and that the escrow funds do not get paid out until the property is closed on and the seller has the guarantee that the buyer is committed to the property purchase.

It's not unusual for title insurance agencies to employ notary publics and offer notarization services. By providing notary services, title agencies can serve as an all-in-one resource for real estate transactions. By offering notary and escrow services, which require by law impartiality by the service provider, the title agency is further defining itself as a trustworthy place to do business.

Real estate title companies play an important role in real estate transactions. From performing title exams and handling escrow funds to providing title insurance and notary services.

Source: Free Guest Posting Articles from

About Article Author

Chris Harmen
Chris Harmen

Property buyers in Florida rely on Title Junction, a Cape Coral title insurance agency for prompt, courteous and professional service. Title Junction also offers Cape Coral notary and Fort Myers escrow services.

View More Articles