As buyers and sellers enter the final stretch of their real estate transaction, they must have peace of mind. It includes knowing that the seller is the property’s valid owner and that no outstanding issues will damage the title when transferred to them.
When researching a property’s ownership history, a reputable title service provider will leave no stone unturned. They will also communicate well throughout the process.
Title Insurance
A title company in Vero Beach, ensures buyers have the legal right to buy and possess real estate property. They also verify that there are no conflicts (like liens) that could affect the ownership of the property. They then issue a policy that protects the buyer from any issues that may arise in the future.
For example, the title company will help a buyer negotiate and settle any outstanding liens on the property. They will also help sellers clear up any paperwork errors in public records that could lead to future complications.
While title insurance is not legally required, it is famous for real estate transactions. Some lenders even require it for mortgages they underwrite. There are two types of title insurance policies: a lender’s policy and an owner’s policy. Lender’s policies benefit the lenders and are typically paid for by the seller, while owners’ policies benefit the buyers. A lender policy can be bundled with an owner’s policy for a discounted rate.
Encumbrances
In real estate, encumbrances are claims that limit property ownership. They usually take the form of mortgages, liens, and leases. A thorough title search can uncover any encumbrances on a piece of land before a sale.
The goal of a good title company is to uncover any rights or claims to the property that may hinder a sale. It can be done through a chain of title searches, which includes a complete investigation into financial encumbrances.
For example, if someone has not paid their creditor, the debt could be attached to the property. It would prevent a new owner from exercising complete control of the property until the debt is settled. There are also non-financial encumbrances that restrict uses, such as zoning laws.
Closings
In a real estate closing, the title company prepares and oversees final paperwork, ensuring all necessary signatures are acquired. They also act as a neutral third party that holds funds and documents until all parties fulfill their obligations.
During the closing process, the title company will work with both parties to compromise if a problem is discovered, like an outstanding lien on the property. They may even negotiate and settle with the lienholder on behalf of the seller.
When choosing a title company, asking for recommendations from experienced real estate professionals is best. They will point you toward a company with an efficient escrow transfer process, offer customer service over the phone or through online portals, and can provide legal expertise on staff. Real estate professionals need to have a solid understanding of local regulations and be familiar with other professionals involved in the transaction.
Representation
When you work with a trusted real estate title company, the closing process for your Florida home sale, purchase, or refinance will go more smoothly. They will hold your down payment or earnest money in an escrow account and only release it when you and your mortgage lender agree in writing.
They will also verify the legal description of your property’s boundaries and easements the rights to use part of another person’s land. If they discover any claims, disputes, or liens on your property, they will take steps to clear them so you can proceed with the home sale.
The most experienced real estate and lending professionals often refer clients to a particular title company, but you can select any agency that serves your area. Make sure your chosen company is reputable and offers title insurance, which protects your investment should a legal dispute arise.
