Whether you are buying or selling a house, you will likely be
working with one or more title companies during the process. This is
because such businesses are involved in a variety of tasks when it comes
to real estate. Find out what they tend to do, so you know what to
expect when you meet with representatives.
As the name suggests, these businesses are in charge of checking the titles on homes to be sold to make sure they are clear. This means they cannot have liens on them or claims by anyone other than the current seller. This way, the buyer can rest assured he or she will not be challenged for homeownership by a lienholder that no one was aware of during the real estate transaction. This step requires some research and is just part of the preliminary process of selling or buying property.
Even if there are not currently any lienholders, it is possible that the seller owes money to someone who may try to come after the new owner. For this reason, most title companies check to make sure there are no debts associated with this house. For instance, representatives will work to find out if the property taxes are all paid and up to date. They might also check with local utility providers to make sure there are no outstanding bills that the company may try to pass off on the new homeowner.
Another part of the process involves obtaining title insurance to protect the lender. You will be required to have this on your house, so the lender is protected. However, you can also buy your own insurance that will protect you as the homeowner in case someone tries to put a claim on the home or commit fraud against it. This way, you will not lose the house under these circumstances.
You can also expect title companies to help the lender prepare the many closing documents that need to be read and signed. There are hundreds of pages involved with this process, so this is why more than one agency is involved with preparing for closing. They need to be reviewed by a number of people to ensure accuracy. Otherwise, you may have to sign them all over again if it turns out there was a mistake the first time.
Now you have an idea of the role that title companies play when it comes to buying or selling a house. You can expect to be in contact with such a company at least once during the process. Of course, some businesses of this kind do even more, so these responsibilities are often just the beginning.
As the name suggests, these businesses are in charge of checking the titles on homes to be sold to make sure they are clear. This means they cannot have liens on them or claims by anyone other than the current seller. This way, the buyer can rest assured he or she will not be challenged for homeownership by a lienholder that no one was aware of during the real estate transaction. This step requires some research and is just part of the preliminary process of selling or buying property.
Even if there are not currently any lienholders, it is possible that the seller owes money to someone who may try to come after the new owner. For this reason, most title companies check to make sure there are no debts associated with this house. For instance, representatives will work to find out if the property taxes are all paid and up to date. They might also check with local utility providers to make sure there are no outstanding bills that the company may try to pass off on the new homeowner.
Another part of the process involves obtaining title insurance to protect the lender. You will be required to have this on your house, so the lender is protected. However, you can also buy your own insurance that will protect you as the homeowner in case someone tries to put a claim on the home or commit fraud against it. This way, you will not lose the house under these circumstances.
You can also expect title companies to help the lender prepare the many closing documents that need to be read and signed. There are hundreds of pages involved with this process, so this is why more than one agency is involved with preparing for closing. They need to be reviewed by a number of people to ensure accuracy. Otherwise, you may have to sign them all over again if it turns out there was a mistake the first time.
Now you have an idea of the role that title companies play when it comes to buying or selling a house. You can expect to be in contact with such a company at least once during the process. Of course, some businesses of this kind do even more, so these responsibilities are often just the beginning.
There are several Title Companies in Michigan that can help you buy or sell your home. Go here to find a provider: http://www.libertytitle.com.
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