A big chunk of closing costs in a real estate transaction go to the Title Company. Many Buyers and Sellers that do not have much experience in real estate transactions often do not understand the Title company's role. In my next 4 blogs - I will detail the 4 major roles of a Title Company, and how essential they are to making sure everyone is protected and the transaction goes smoothly.
The first essential role they play is for conducting the Title Search (The Detective Work). Once a purchase contract is signed, the title company digs through decades of public records— deeds, land registries, tax records, court filings, and divorce decrees. They are searching for title defects (often called "clouds on the title"), which can include:
a) Unpaid Liens: Outstanding debts left by previous owners, such as unpaid property taxes, contractor bills, or child support obligations attached to the house.
b) Ownership Disputes: Unknown heirs or long-lost relatives claiming rights to the property.
c) Errors in Public Records: Incorrect names, illegal deeds, or recording mistakes made years ago.
If any issues pop up, the title company works with the seller to clear them before closing so you don't inherit someone else's debt.
It is important that the Title company that is used is thorough in their Title Search. Using the wrong Title company could lead to headaches down the road. At EZ Team, we help our clients sift through different choices and help them make informed decisions services provided. Call us today - 410-271-9499.
