subject: Title Company - What It Is And What It Does [print this page] If you're in the position to buy or sell a home, you're undertaking a financial transaction that involves thousands of dollars, if not hundreds of thousands. For many people, it is the largest transaction they will ever be involved with and for that reason, it requires great care and understanding. As part of this cautious approach, many people will turn to a title company to make sure the transaction goes as smoothly as possible. What are these businesses and what do they do?
Abstract
One of the first tasks on the plate of a title company is an abstract, which involves conducting a search of local real estate records. Performing this search accomplishes a few things. One, it will determine who the legal owner of a piece of property is. This is a matter of dispute in some instances and it is better to set the record straight sooner than later. Two, the search will turn up any liens against the property that need to be addressed before a sale can take place. It will also show any easements or additional restrictions on the property that could prevent a sale from going through.
Opinion
After the title company has run their abstract, they will usually draft an opinion letter. Within this letter will be detailed any and all things that need to be done before a proper sale can go through without legal restriction. Nothing in this letter is legally binding in and of itself; this is merely a service the business provides on behalf of the owner (or buyer). What you do with the information you receive is up to you, though ignoring outstanding liens and matters of murky ownership status can get you in a sticky situation down the road.
Closing
A title company can also help with the legal details of the transaction itself. This is, in fact, what most people turn to these businesses for in the first place. Handling all the matters of a closing without any legal assistance can be troublesome under the best of circumstances. These experts bring their experience to the table, handling issues such as the closing statement, collecting the money from each party, and paying the expenses that come along with the transaction. They will then make sure all the records of the sale are properly filed with the county. This releases the parties involved in the sale from a tremendous burden of paperwork and legal entanglements and allows them to focus only on the sale itself.
