What Does a Title Company Do?

What Does a Title Company Do?
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Not to be confused with a deed, which is a legally binding document used to transfer property from one owner to the next, a title is documentation that explicitly states that you own the property. In the homebuying process, title companies verify that the real estate title gets properly passed to the homebuyer to guarantee title insurance. If someone makes a claim to a property, title insurance will protect the lender and potentially the owner as well as maintain your escrow accounts at closing. While the title company insurance process is thorough, here is what you need to know about the role that title companies play in the homebuying process.

What Happens Before Title Companies Issue Title Insurance?

Before insurance is granted, title companies perform title searches. The goal of the search is to review potential obstacles and ensure a seamless transfer of ownership. These obstacles can include:

After title companies do their search, they will survey the property to ensure no infringements or damages exist for a smoother transition. From there, two documents are prepared:

What Is Title Insurance?

After proper preparations, title insurance steps are next. Two types of title insurance exist:

How Do I Find a Title Insurance Company?

Mortgage companies work with area title companies and can help recommend a good one to you. Fortunately, most of the title companies in the Central Florida area are excellent. If you are a homebuyer looking to close on the home of your dreams, Butler Mortgage can help. With 25 years of experience, we understand how extensive the homebuying and title insurance process can be and want to help you be successful every step of the way. Call us at 407-931-3800 or fill out our free consultation form online.

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