What Does A Title Company Do?

You can benefit from the services of a title company, which can safeguard you in case of problems with your home title. For example, a forged deed or undiscovered heir could affect your home’s title. These issues may leave the person who purchased the home with a financial burden. Using a title company can avoid such problems by ensuring the title is clear and free of liens and encumbrances.

Verification of Easements

Verification of easements by a Title Company in Jacksonville FL can be important in real estate transactions, especially when there is a conflict between the property owner and the developer. Easements may be prescriptive, implied, or expressed. A written agreement between two landowners creates an express easement. Usually, these are recorded with the deeds to each property. A buyer or developer purchasing a property should check the title records to ensure an easement is recorded.

An easement is a legal document signed by the landowner. It permits another property owner to use part of their property for their own benefit. It could be a public highway, a utility pole, or the main road. A property owner may grant an easement to a neighbor or a third party. Regardless of the legal status of the easement, it is important to check the title for any existing liens before the closing.

Verification of Past Ownership

When buying or selling a property, title verification often includes checking the property’s history. The title company will perform extensive research to ensure that the seller is who they say they are and that they have the legal right to sell. They will also look for past liens, unpaid taxes, and court judgments. This information is vital to the successful closing of a transaction. 

The first step in property ownership verification is checking the public records for the property. Public records list all previous and current owners of the property. While public records are generally a reliable source of information, they aren’t 100% accurate. A title company can prepare a title abstract to verify the past owners of a property. If the public records do not reveal any information about the property, the company can prepare a title abstract for you.

Protection Against Liens

Whether you are purchasing real estate or selling a home, there are many reasons you should protect yourself from liens. An owner’s title insurance policy provides you with the peace of mind that you are fully protected against any liens that may appear on your property. In addition, you should consider purchasing this type of coverage if you intend to do any construction on your property. This policy protects you against liens of all types and protects your lender from claims of encumbrances on your property.

A lien can occur if the owner fails to pay a contractor or subcontractor. A lien can also arise if a city or county fails to pay the utilities associated with a property. A title company can search public records for lien interests to ensure that the property is free of these claims. The insurance company can use this information to protect its clients against these risks. By protecting the title company, a buyer has a stronger claim against the lender.

Escrow Account

When a title company sets up an escrow account, it places money into a special bank account for the specific debts that the buyer and seller will hold in that transaction. These funds are identified by the beneficiary’s name, federal tax identification number, and social security number. This way, the title company can account for interest income on the funds held in the account. However, not all escrow accounts are set up this way.

While the amount in an escrow account is not a set amount, it’s usually a certain amount. For example, the lender can limit the amount a buyer or seller can deposit into the account monthly. In addition, the lender may require the buyer to contribute at least a sixth of the total amount that will be held in the escrow account. These fees are paid to third-party service providers involved in the closing process. Escrow fees are not regulated, but a title company’s price may be based on what the insurance industry charges.

Owner’s Title Insurance

While owner’s title insurance is not required by law, most lenders do. It is a relatively inexpensive way to protect yourself against any potential damage arising from property ownership errors. Regardless of what you want to do with your new home, you should know that mistakes in property ownership records are more common than you may think. Purchasing owner’s title insurance is a great way to protect your investment and avoid any potential hassles down the road.

When purchasing an owner’s title insurance policy, a title company will perform a title search on the property you’re considering. They will look for property title issues, including outstanding mortgages. If the search finds any issues, the title company will inform you and, if possible, provide a quote for a title insurance policy. If you’re not comfortable purchasing the policy, it can be declined by the title company.