A reputable and qualified real estate title agency can make your for sale by owner property transaction flow smoothly with minimal delays. Many people who are involved in a for sale by owner transaction question the role of the title agency and how the agent and agency can assist them with their purchase, but title agencies provide important services and safeguards throughout the sale process.
Your For Sale By Owner Property Purchase And Title Services
A real estate title agency performs many important functions during any property transfer, including for sale by owner transactions. One of the most basic services provided by the agency is to conduct a title search on the property being sold. This search will uncover any liens against the for sale by owner property, and ensures the property is legally eligible for sale. A title company has extensive experience doing this type of records research. They know where to look, what different terms and findings mean and how to comply with all applicable local, state and federal laws. The title agency can be selected by either the buyer or seller and is a negotiable part of most real estate transactions. In either case, the title agency serves as an impartial party that works to ensure a smooth closing for both buyer and seller.
Another primary function of the title agency is to provide the for sale by owner property purchaser and the mortgage lender with title insurance. This indemnity insurance policy protects the buyer and lender from unseen claims that may arise against the property in the future, such as unpaid taxes or property liens, as a result of past owners’ actions. Although the title search is supposed to find these liens, it’s always possible for a lien to be missed or a claim to arise against the property from an unknown source. That’s where title insurance comes in. The policy will help protect you from losses if such a claim does come up.
While conducting the title search, a title agency will also order a survey of the property, which will uncover any encroachments onto the land that the buyer may be unaware of. Both title insurance and property surveys are examples of safeguards provided by title agencies.
Additional Services Of The Title Agency
Many title agencies also act as escrow agents which means they can hold the earnest money, pay off the seller’s mortgage and pay any necessary taxes after closing. Title agencies also file the transaction records with the appropriate governmental entities so that the transfer of the for sale by owner property is properly recorded.
You will also find a notary public on staff at most title agencies. Notaries assist during property closings and property transactions by verifying the identities of those involved. This helps prevent fraud.
Last but not least, title agencies also often host the actual closing and facilitate the closing process. From the moment the earnest money check is signed to the moment the last signature is written on sale documents, the title agency is involved. The agency handles correspondence and forms from the buyer, the seller, any real estate agents involved, banks, mortgage lenders and more. The agency will keep track of all of this correspondence and make sure everything is in order for the closing to take place.
It is important for buyers and sellers of for sale by owner properties to work with an experienced, full-service title agency. These agencies will guide you through the closing process, ensuring all of the necessary transaction paperwork is in order and that the property is eligible for sale.