#20 What Does Your Title Company Do?


The very simple answer is that your Title Company searches and reviews the property history, addresses the “discoveries” and tackles the “problems” that the search and review process may reveal.

Any “simple” answer and description is just that – simple!   Actually, the Title company process is thorough, consequential and complex!    Every home that you viewed and considered has a history.  The Title Company’s responsibility is to track the history of the specific home you have chosen and make sure that the title to that home is clear.

Many residential properties have had multiple owners, so it is not surprising that in the process of transferring property from seller to new owner, oversights in the documentation may show up.   Perhaps somewhere in the history of the residential property that you want to own there is a missing signature, unclear documentation of a dispute or other matters.  Your Title Company is charged with the responsibility of searching the property’s history for accuracy, identifying anything that is not in order, investigating the facts and determining the remedies.

Before the property can be legally transferred to its new owner, any problems in its history must be handled.  There may have been minor disputes concerning a property line, a private driveway serving more than one property or a common-use easement.   There might be an unresolved mechanics lien or tax lien on record. The Health Department comes into the picture concerning water quality standards.  You may be buying a property that is owned by multiple family members who are involved in disputes; or, the owners may be in the process of divorce.  Whatever turns up in the “title search,” is going to be good news.   That’s right!  What you want is for your title company to discover and rectify any mistakes, oversights or even illegalities – before you assume ownership! 

It’s one of those situations when bad news is also the good news!  What you don’t want is to buy your new home, then down the way discover a serious old issue that is now your responsibility to address, because it was somehow missed in a past title search.   That’s why there is Title insurance!  If the title to the house you want to buy is clean as a whistle, that’s great!  But be thankful that, if and when there are discrepancies, they are discovered and will be handled --allowing you to go forward with an unencumbered property.

The time it takes for the Title Company to search a residential property’s history is time well spent for the obvious reasons mentioned here.  The more times the property has changed hands, the more complex the search; it’s still time well spent! It may require a lot of patience on your part.

In addition to handling problems and irregularities, your Title Company (always in cooperation with the leadership of your Lender) oversees all legal signatures and the transfer of all pertinent documents. All monies are held and distributed by the Title Company per the commitments agreed upon by Seller and Buyer.   That also includes management of any financial obligations revealed in the Title Company’s search.  The Title Company provides both the Buyer and the Lender with “Title Insurance,” the cost of which is calculated based on the property cost and category.

Don’t forget that you are working with a professional team made up of specialists who know their way around and through the typical issues in the entire process of acquiring your home.   When the Title Company is satisfied that all is well they’ll record the Deed for your new home! Then your Realtor will hand you the keys!  Now you will be ready to make the important transition you have been working so hard to accomplish!


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