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Let’s unravel the mystery behind what title companies do throughout the home buying or selling process. I recently got this question from some first-time buyers, and it’s a gem worth exploring. Check out my video on title insurance, and let’s dive into the lesser-known but crucial roles of title companies.
Cash Handling and Earnest Money
Title companies, in many cases, act as impartial money custodians. They collect and safeguard your earnest money, serving as an unbiased third party. This ensures fairness if any disputes arise during the process. It’s all about transparency and ensuring funds go where they should.
Recorded Documents and Title Commitment
One of the critical tasks is pulling recorded documents to create a title commitment. This involves scouring public records for anything related to the property, from existing loans and mechanics liens to potential clouds on title or gaps in ownership. This comprehensive research sets the stage for a clear title commitment.
Plat Maps and Property Information
Ever wondered about the intricacies of your property’s legal description? Title companies provide essential information from plat maps, detailing neighborhood divisions and your specific property’s location. This includes street frontages, survey records, easements, and covenants that could impact your property.
Closing Numbers and Package
Handling the financial nitty-gritty, title companies compile and distribute the final closing numbers. This includes dissecting the contract to determine who pays what, ensuring a fair distribution of costs between buyers and sellers. They present a detailed settlement statement for both parties, bringing clarity to the financial aspects of the transaction.
Closing Process and Deed Recording
Title companies orchestrate the closing process. From going through loan documents with the buyer to presenting the closing package and ensuring the deed gets recorded in public records – they manage the crucial final steps of the transaction. This ensures the legal transfer of property ownership.
Title Insurance
Last but not least, title companies provide you with title insurance. This policy is sent to you after the dust has settled and you officially become the property owner. It protects you from potential future issues related to the property’s title.
If you’re considering selling your home in the South Denver Metro area, book a Home Seller Consultation with me at Calendly/RealtorStacie or call 720-295-9089.
