Do Title Fees Justify The Protection Title Companies Offer?


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The average person doesn’t buy more than 1 or 2 houses in their lifetime so the transaction is viewed as pretty substantial. Most homes cost ten of thousands of dollars and some are upwards of that, so you can see why banks and homeowners alike take steps to preserve the value and ensure the transfer of the property.

Title companies are charged with the task of ensuring that the title is easily and cleanly transfered from one party to the next. This is necessary to avoid litigation and preserve property integrity.

The title company makes sure any and all liens, including mechanics liens and tax liens, are taken care of before the transfer. They also confirm legal boundaries just in case there may be a discrepancy.

Realtors involve the title company as soon as they have an accepted contract by sending the file to them as soon it is signed by all parties. The title company immediately confirms all compliance with pertinent laws and regulations and then oversees the transfer of title and the following responsibilities as well

Confirming the identity of the sellers

This step essentially confirms that the supposed seller actually owns the property and can legally convey it, their identity and marital state. The title company also submits all legally required documents.

Property has Clear Title

The other important objective of the title company would be to ascertain the title of the property being purchased by the buyer is absolutely clear. This would mean that the property does not encumbrance or is not under lien. There is no property or any other fiscal tax or costs due by the seller to the state.

Title insurance

In many instances, the title company also organizes for title insurance to the buyer against any legal risks that might surface in the future. This would insure the buyer against any ownership issue emerging in future and costs involved in litigation and other matters related to settling any dispute regarding the sale being made by the actual owner of the property. Though the buyer has the right to choose his title insurer, the buyer usually prefers the same company with whom the lender takes tile insurance cover.

The “Commitment of Title Insurance” is issued once the title company has certified the title of the property. All parties and participants in the transaction receive a copy.

You have to gather all the information regarding the property your are purchasing a you spread out the liability for this step by hiring the appropriate entities to do so.

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