4 Roles of Title Companies in the Homebuying Process

Posted by Ajay Garg on November 21st, 2022

Many parties are involved in the home-buying process, and each has an important role. Title companies are one of those key players, and there are four specific roles they play. If you're in the market for a new home, consult with a title company to ensure everything goes smoothly. 

1. Complete a Title Search 

One of the main tasks of a title company in Coral Springs is to complete a title search. This involves researching the public records to ensure that the seller is the rightful owner of the property and that there are no outstanding liens or judgments against the property. 

The title agency in Coral Springs also evaluates the history regarding the transfers that have been done and owners to establish whether it is clean and available for transfer to a new owner. The title search also helps identify potential issues affecting the buyer's ownership rights. Once the title search is complete, the title company will prepare a title report, which the lenders can use to determine whether or not to issue a loan for the purchase. 

2. Issue Title Insurance

Another of the title company's primary roles in the home-buying process is to issue title insurance, which protects the lender and buyer from title defects that may arise during or after the sale of the property. The title company will issue a title insurance policy if the title is clear. The best title agency in Coral Springs will provide a lender’s title insurance and the owner’s title insurance to protect the mortgage’s value and the owner’s equity in case of any unexpected issues. The title company will provide financial protection for the lender and buyer if a problem arises.

3. Handle Escrow Funds

When you're ready to buy a home, any title agency in Coral Springs will help to make the process as smooth as possible. The best title agency in Coral Springs will also handle all of the paperwork and escrow funds on behalf of both buyers and sellers. This ensures that the funds are only released once all of the necessary paperwork has been signed and the title has been transferred. If you want to buy a home in Coral Springs, work with a reputable title agency. 

4. Manage Closing of the Transaction 

A title company's role in the home-buying process is also to manage the closing of the transaction. From start to finish, a title company in Coral Springs will work with buyers, sellers, lenders, and real estate agents to ensure that all necessary paperwork is completed and filed correctly. The company ensures that all documents are properly signed and notarized and that all funds are disbursed according to the contract. 

A title company helps to ensure that the home you buy is yours once the purchase is complete. It would be much harder to close on a home without a title company. If you need expert title services, contact Expert Title Company today. We would be happy to help you through every step of the home-buying process.