The last stop on your home purchase journey is to sign the paperwork that transfers ownership of the property from the seller to you. This will most likely take place at a title company. This company plays an important role, not just in preparing the paperwork, but also in many other ways that ultimately mean the transaction runs smoothly.
Reconciles the transaction.
The title company takes all the figures from both sides of the transaction and ensures this information is correct. It prepares and distributes documents prior to closing so that all parties have a very good idea of what will happen at the closing. And, most importantly, it also ensures that funds arrive from your lender so that all other parties in the transaction, including the seller, get paid upon closing.
Provides title insurance.
Title insurance is a policy issued by the title company. This is a very important document, because it says that if any liens (claims) show up against the property after closing, the title company will address these claims using their own resources.
There are actually two policies issued during this process; one protects you, and the other protects your lender. In many states, you pay for the coverage protecting your lender, and the seller pays for the policy that protects you.
Once your transaction closes, documents need to be delivered to the recorder’s office, and the title company is responsible for delivering these documents. At this point, the transaction becomes a matter of public record.