The average person does not buy more than 1 or 2 houses in their lifetime so the transaction is viewed as pretty substantial. Most homes cost tens of thousands of dollars and some are upwards of that, so you can see why banks and homeowners alike take steps to preserve the value and ensure the transfer of the property.
The title company performs the necessary role of checking all aspects relating to the title of a property right from the legal ownership to title insurance. The buyer and title company have a common goal of avoiding any legal disputes which might emerge later in case the title of the property is not clear.
It would be title company's prime responsibility to provide the necessary comfort and assurance to the buyer that the property he intends to buy is free from any legal trouble and would not lead to any ownership dispute once the buyer closes the transaction.
Realtors involve the title company as soon as they have an accepted contract by sending the file to them as soon it is signed by all parties. The title company immediately confirms all compliance with pertinent laws and regulations and then oversees the transfer of title and the following responsibilities as well.
Making sure the sellers are who they are supposed to be
The confirmation of the seller's identity and their legal ability to transfer the property is verified at this point by the title company. Then they submit all necessary legal paperwork as well at the appropriate time.
Property has Clear Title
The title company also confirms that the buyer can take title in a clear manner. This confirms that all liens and encumbrances have been cleared out and there are not any other remaining issues with the title.
Insuring the title of the subject property
The buyer is protected by a form of insurance called "title insurance" which is purchased through the title company and covers any legal or administrative costs that may arise from the transfer of the title. Buyer and lender alike buy their own policies to guard each of their interests.
The final stamp of approval is called the "Commitment of Title Insurance" and is issued only after the title company has signed off on the authenticity of the property title. All parties including Realtors, lenders and seller and buyer get copies of the document for their own records.
Your responsibility to investigate the property you are interested in does not stop at trusting the professionals you hire to take of things. You must also act to disseminate the liability of the transaction through as many responsible entities as necessary for your own protection.
Author Resource:
Gavin King is the Designated Broker of Realty In Idaho and enjoys writing articles on boise idaho homes for sale and homes for sale in meridian idaho
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