A Title Company’s Role in a Real Estate Transaction

Buying a home or property involves a lot of players. One of the most important and often understated players in the process is the title company. The primary role of a title company in a real estate transaction is to verify that the title of the property is legitimately given to the buyer. In other words, the title company makes sure that the seller has full rights to sell the property. Read on to learn more.

The Difference Between a Title and a Deed

If you’re new to the home buying process, you may not realize that there is a difference between a title and a deed. There is indeed a difference, and it’s essential to understand what that is. A deed is a legal document that changes hands when a property is transferred from one owner to the next. When you close on a property, the deed is signed and witnessed before it gets to you. The deed will include a written description of the property. On the other hand, a title is a piece of documentation that says you own the property described in the deed. The title is a crucial piece of the overall real estate transaction.

The Verification Process

The main job of a title company is to verify the title. To do this, they perform a title search. This process searches the history of the title and makes sure there are no liens, outstanding mortgages, judgments, or other issues that may jeopardize the sale of the property. The goal is to make sure you will be able to own the property free and clear. Once the verification process is complete, the title company will insure the verification. Title insurance protects both the lender and the owner if someone eventually makes a claim to the property.

For all your title needs, contact Innovation Title Inc!