Title Company
A mortgage title company plays a crucial role in the process of transferring property ownership during a real estate transaction involving a mortgage.
Their primary responsibilities include:
Title Search
The title company conducts a thorough investigation of public records to ensure that the property being sold has a clear title, free from any liens, encumbrances, or legal issues that could affect the ownership rights.
Title Insurance
They issue title insurance policies to protect both the lender and the buyer against any potential defects in the title that were not discovered during the title search. This insurance provides financial coverage for any losses incurred due to title defects.
Escrow Services
The title company often acts as an impartial third party to hold funds, documents, and other important items related to the real estate transaction in escrow until all conditions of the sale are met.
Closing Services
They facilitate the closing process by coordinating with all parties involved, including the buyer, seller, lender, and real estate agents. The title company ensures that all necessary documents are properly signed, recorded, and funds disbursed according to the terms of the sale.
Record Keeping
After the closing, the title company ensures that all relevant documents, such as deeds, mortgages, and title insurance policies, are properly recorded with the appropriate government authorities to finalize the transfer of ownership.
Overall, the mortgage title company plays a critical role in ensuring a smooth and legally sound real estate transaction by conducting thorough research, providing insurance protection, facilitating the closing process, and maintaining accurate records of the transaction.