You’ve found the home of your dreams. Congratulations!
Now, it’s time to complete the transaction and get the keys. To do so, you’ll need to work with and communicate with a few different parties throughout the home buying process, including the title company.
What Is a Real Estate Title?
A real estate title identifies who has ownership of a specific property. During the real estate transaction, you’ll receive and be required to sign a title to take ownership of your new home. The process of titling will be the responsibility of the title company. The company is chosen by you, the seller or the lender financing the home.
Title vs. Deed
Often, titles and deeds are confused with one another during the process. Although a title states you’re now the owner of the property, the deed is the legally binding document used to transfer the property between the seller and you. You’ll need to sign it with witnesses to take ownership of your new home.
The Responsibilities of a Title Company in Residential Real Estate
You won’t have to complete the titling process on your own. And, in fact, you likely shouldn’t. A title company can step in to ensure the title is correct and that you take all necessary steps to ensure everything is in order for the transfer of ownership. In fact, the main responsibility of the title company is to verify that the title is properly given to you.
To start, an agent from the title company will ensure that the seller can indeed sell the property in the first place. This process, called verification, helps the title company find and remediate common title issues such as unknown liens, unknown easements, boundary disputes, forgeries and more.
Once the title company finds the title to be valid, they prepare an abstract of title or a summary of the history of the property. They’ll also issue title insurance, protecting you and the seller against any dispute that may arise due to ownership. In some cases, your title company may also be responsible for the closing process.
Ready to Purchase a New Home? Call a Professional Title Company.
The title company you choose should have the experience needed to protect your interests. At Lonergan Law, we serve clients by providing a full suite of real estate services to save you time. To learn more about our title services, send us a message.