In short real estate title companies research properties for title searches, liens, handle the closing documents, provide insurance, and acts as a third party guarantor for the home buyer. Of course they do much more, but you 'll have to read all about that in our blogs.
What is a real estate title company and what do they do?
Real Estate Title Companies are a third party guarantor that works on behalf of the lender, and the buyer. Why is it important to hire a reputable firm such as Western Nevada Title Company? Let's say you don't use a real estate title company and you purchase a home and years later find out that the seller only owned half the home, or another person was on the deed?! The other owner has the legal right to request or even file civil action for their 50% of the home, or even demand the house be returned. Title companies such as WNTCO and the title insurance policy you purchase from them will protect you from any liability ,and is an important part of the your guarantee from fraudulent activity and the closing process. So what else do they do and where does your money go?
1. Chain Of Title
Western Nevada Title Company will research the 'chain of title', or the full history of the home’s ownership dating back to the original build. Remember the scenario above? A search from WNTCO would have revealed the second owner, and stopped the sale of the home before you were blind sided. They also search for existing liens on the property from contractors or even unpaid taxes. This alone is a great value and asset for your money.
2. Title Search
WNTCO will also conduct a property tile search. A title search tells you the name of the legal owner of a property and if there are any outstanding claims or liens against the property. Liens may be filed by lenders and other financial institutions, contractors, tax collectors, and any other entity that has a financial and legal claim against the property. This protects you as the new owner of the home from being responsible for past liens or financial obligations of the previous owner.
3. Title Insurance
WNTCO provides two kinds of title insurance policies: one for you, and for your lender. This protects both you and the lender in the event an individual or even entity files a claim or civil action against the ownership of the home you purchased. It's common for the seller to pay for the buyers title insurance policy, and the buyer for the lender’s policy. However this is a negotiable item when purchasing or selling a home. Additionally, this is not like an annual or monthly insurance policy, you only have to pay title insurance once when you close on the property. You’re then covered for as long as you own the home. Learn more about buying a home through our educational blogs and resource pages.
4. Title Determination
It’s important that your title accurately describes who has the right to
transfer ownership upon sale or inheritance. Your title phrasing will also affect how you pay property taxes and fees when selling your home. If you are single, things are pretty straight forward, but if you are married or living in a community property, things need to be very clear as to who can transfer the ownership. Western Nevada Title Company has been in business since 1983 and is well versed in making sure our buyers are protected.
5. Closing Documents
WNTCO will manage the purchase of your home, so you can rest assured everything is done correctly, legally, and risk free. This service is called 'document preparation'. We will appoint an underwriter to review all closing documents for risk, error, and finalize the deed and title transfer.
Western Nevada Title Company also holds and manages money in an escrow account. An escrow account is a financial account managed by a third party – which distributes payouts under certain conditions. Escrow accounts are common in real estate purchasing to ensure the lender, you as the buyer has the proper funds for expenses required during the closing process.