A title company has a multitude of roles to fulfill in a Florida real estate transaction, acting as the shared agent of the buyer, seller, mortgage lender, and any other party involved in the transaction. The closing process is the responsibility of the title company from start to finish, and during that process there are an incredible number of details that must be overseen to ensure a smooth sale and/or purchase of real estate.
Here’s a breakdown of the duties of a title company for a typical Fort Myers real estate transaction.
Researches the Property’s Title History
Defects on a title could potentially have a negative effect on your property ownership rights in the future—that’s why the title insurance company will carry out the crucial task of making sure your title is clear. This is accomplished by conducting a thorough title search to reveal any hidden title issues (also referred to as ‘clouds’), such as property liens or unpaid taxes.
The title company reviews public records and digs into the history of the property to reveal any type of legal action involving the property, such as a foreclosure. All of the information is compiled into a preliminary title report, which serves as a commitment for title insurance, informing all interested parties of the status and condition of the property’s title.
Issues Title Insurance
While it might seem like a far-fetched threat, there have been instances of someone (such as an unknown heir of a previous owner) filing an ownership claim years after a closing, and the current resident losing their home. In order to prevent this, it’s important to protect the title of your home with a title insurance policy issued by a reliable title company. The title company facilitates the paperwork for issuing the policy and the insurance premium goes to an underwriting company, which bears the risk of any loss under the policy.
Facilitates the Closing Process
It’s the title agent’s job to make the process leading up to the signing of the final closing documents as smooth as possible. Once clients reach closing, the title company will collect signatures on all the closing documents and transfer any payments necessary from one party to the other to complete the transaction.
Acts as Escrow Officer
The duty of an escrow officer during a real estate transaction is to hold any funds or documents, such as a signed deed to the property, until they are released according to the written instructions of the buyer and seller. Essentially, the title company acts as an intermediary between the parties to make sure all agreements are upheld.
Files and Records Paperwork
Once all parties have signed the necessary documents to complete the closing, the title company finalizes the closing process by recording the deed and mortgage, as well as any additional documents required by the Lee County Clerk Recording Office. To finish off the process, the title company will mail the deed and final title insurance policy to the new owner of the property.
At Title Junction, we care about helping you stay informed throughout your real estate transaction. The experts at our title company have extensive knowledge about real estate not only in Cape Coral and Fort Myers, but all of Florida as well.
Have questions? Give us a call at 239.415.6574.
In case you missed it, check out our last Title Junction post: Understanding Your Loan: Cash And Transaction Summaries