When buying a home, one of the key players you’re going to deal with in the process is the Title Company. Below are 5 things your Title Company should do for you and 5 that they should not do:
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5 THINGS YOUR TITLE COMPANY SHOULD DO FOR YOU:
1: PROVIDE A PRELIMINARY TITLE REPORT
Your Title company should provide you and your agent with a Preliminary Title report. This report shows the ownership of the property, and any liens, encumbrances and/or issues that may hinder the closing of the transaction.
2: HOLD YOUR EARNEST MONEY
A title company will often hold your Earnest Money deposit. If the sale does not go through, the seller may be entitled to keep the earnest money. Your Title Company will make sure this money ends up in the right hands.
3: OVERSEE YOUR SETTLEMENT AND CLOSING
As part of the process of your property transaction, title companies oversee the closing on a home. The Title Company is responsible for drafting documents or obtaining documents from your lender, obtaining signatures, making sure all the documents are properly notarized and sent to the right people and distributing funds to all parties.
4: FILE AND RECORD YOUR CLOSING DOCUMENTS
At the time of Closing, you will sign either a Warranty Deed transferring title to the buyer or a Deed of Trust, which is a recorded agreement between you and your lender. These types of documents will need to be recorded with the county. Your Title company will do this for you as part of the closing transaction.
5: OFFER TITLE INSURANCE
Title Companies are designed to offer you title insurance to protect you against any type of legal claims made on against the ownership of the property. That’s what Title Companies are for!
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5 THINGS YOUR TITLE COMPANY SHOULD NOT DO FOR YOU:
1: NEGOTIATE PRICES FOR YOUR PROPERTY
Your Title Company should not negotiate the price for which you sell or purchase a property. That’s what your Real Estate Agent is for! Your Title Company legally can’t help with that part of the process.
2: PULL YOUR CREDIT
Your Title company will not have access to credit reports and will not and cannot pull your credit at any time in the transaction. You and your lender will work together on your credit report and find a loan that will be within your budget.
3: SCHEDULE YOUR HOME INSPECTIONS AND APPRAISALS
Your Title Company can’t help you get your home inspected or appraised. That is something that your lender and/or real estate professional will have to help you with.
4: PROVIDE TAX INFORMATION
Legally, Title Companies cannot provide tax advice or tax information to anyone. Any tax advice or information must come from a Tax Professional and not from your Title Company.
5: OFFER LOANS
Your Title company is not a lending facility. They will never and cannot offer you a loan to purchase your home. Or a loan to furnish your new home. Title companies are just the middle man in real Estate transactions and therefore will not have the funds to issue a loan.
There are a lot of choices to make when you’re buying or selling a property. Make the right choice with Metro Experience Title. We have 22 locations across the State of Utah and are ready and waiting to help you with any Real Estate transaction.