Role of An Escrow Company in Easton and Nazareth, PA

Posted by TraditionalAbstractPA on January 10th, 2023

It is the dream of every American to own a home that can secure the family and the following generations in time. Simply checking the listings in the properties for sale list or hiring a realtor is not enough. The market has opened up with many banks and financial institutions willing to provide home loans at present. Most people have to get adequate financing to afford a home. There is a long list of terms & conditions to comply with to ensure a mortgage on the chosen property. One of the conditions is related to a title search in Bethlehem and Allentown, PA.

Unfortunately, many first-time property buyers fail to understand the significance of having the search done and buying suitable title insurance. Therefore, a prospective homebuyer must be aware of the following well in advance so that the related rules & regulations do not come as a shock.

Conducting a Title Search

Any liens on the said property will be apparent once a thorough search of the property title is conducted by going through the records. There is much more information revealed at the end of such a search. The outcome of the search will reveal the status of the seller by establishing the right to sell the home. The restrictions on the existing property are revealed as well. One would thus be aware of the existing easements, public access agreements, covenants, and homeowner’s association regulations when applicable. Any unpaid taxes or mortgage amounts would have to be paid by the seller before the property can be sold. The buyer would be satisfied to gain a clear and marketable title once the title does not reveal any issues that cannot be corrected.

Accuracy

There is no hard and fast rule for hiring a professional to conduct a title search. A layperson can do it, as most records are available in public domains. Unfortunately, very old records cannot accede as they would not be computerized. It thus makes sense to engage a title company that is sure to have the required resources to unearth the details related to the concerned property.

Correction of Defects

· Not every title is clear! The buyer should not be concerned about it. The title company can assist in this process, as will a third party, known as the due diligence partner. The following will be ensured to make the property marketable.

· Repayment of the mortgage by the seller

· Clearing all unpaid liens against the property before it changes hands

· Release of judgments, liens, and pending equity loans that are recorded in the title

Title Insurance

The title company will also provide the title insurance that is a must-buy for the buyer as the lender requires. The information that is not revealed by the title search may surface in the future and cause trouble for the new owner. The insurance protects the risks of the lender. The buyer may get a homeowner’s policy to protect the owner’s interests too.

The same company may also double up as the escrow company in Easton and Nazareth, PA, and hold the funds until the closing.