5 things to know about real estate title services
Real estate title services are an essential component of any real estate transaction, ensuring that the property’s title is clear and transferable. Traditional Abstract provides real estate title services in Bethlehem, PA, Lehigh Valley, Nazareth, PA, Allentown, Easton, PA and surrounding regions.
These are five key things to know about real estate title services:
- Title Search and Examination:
Title services typically begin with a thorough title search. This involves examining public records to trace the history of ownership and identify any potential issues associated with the property’s title.
A title search aims to uncover any outstanding liens, mortgages, unpaid taxes, judgments, or other encumbrances that could affect the property’s ownership.
- Title Insurance:
Title insurance is a common component of real estate title services. It provides protection against financial loss resulting from defects in the title that were not uncovered during the initial title search.
There are two types of title insurance: owner’s title insurance, which protects the property buyer, and lender’s title insurance, which protects the mortgage lender. Both are often recommended to ensure comprehensive coverage.
- Escrow Services:
Escrow services are often provided by title companies. In a real estate transaction, the title company acts as a neutral third party that holds funds and documents until all conditions of the sale are met.
The escrow process helps ensure a smooth and secure transfer of ownership. Once all requirements are satisfied, the title company releases the funds and necessary documents to complete the transaction.
- Closing Services:
Title companies are typically involved in the closing process. During the closing, various documents are signed, including the deed, mortgage documents, and other paperwork required to transfer ownership.
The title company ensures that all necessary documents are properly executed, collects and distributes funds, and records the new deed with the appropriate government office.
- Clearing Title Issues:
If title issues are discovered during the title search, the title company works to resolve them before the closing. Common issues may include unresolved liens, undisclosed heirs, or boundary disputes.
Clearing title issues is crucial to ensure that the buyer receives a clean and marketable title, free from legal encumbrances.
Understanding these aspects of real estate title services is essential for both buyers and sellers to navigate the complexities of property transactions and ensure a secure and legally sound transfer of ownership. Consulting with a knowledgeable real estate professional can provide further guidance and assistance throughout the process. Please call us without hesitation.
