A title company is a neutral party in a real estate transaction and has two primary responsibilities. The first is to examine the title chain up to current owner and determine what obstacles, if any, may affect closing. The second is to act as an escrow agent to coordinate with all parties on the collection of information and documents related to the transaction for a successful closing.
They arrange all documents necessary to close and disburse the transaction funds accordingly, record legal documents with the County Clerk, and ultimately, issue the title policy.
- The cost of title insurance is fixed by the state of Texas, their closing fee is pretty much the same at every title company.
- The title company works for the buyer and the seller simultaneously. They are mainly focused on performing a title search on the property. They’ll check for hidden ownership claims or liens.
- The title company issues the title insurance policies to the buyer and to any lender.
- This policy will protect and ultimately indemnify the buyer in the event a claim is made from someone purporting to have a lien, ownership interests, or fraudulent transactions.
- The title process begins once your contract is fully executed:
- Contract Receipted. Title order opened. Title Plant. Abstract Department. Title Examination. Title Information. Closing Title Office. Inspections & Repairs. Closing Date &Time. Lender. Title Company. Closing Day at the Title Company. Funding Authorization. Title company submits policy package. Coordinate preparation of the closing statement.