What Does The Title Company Do?

Introduction to the Title Company's Role00:00:00

The video begins by introducing the title company and its function as an independent intermediary between the buyer and seller to facilitate real estate transactions and ensure their legitimacy.

Title Company's Role for Buyers00:00:34

For buyers, the title company verifies property ownership, ensuring the seller has the legal right to sell, especially crucial for inherited properties. They also check for any outstanding liens (mortgages, city liens, tax liens) and judgments against the property or seller. Upon verification, they issue a title policy, which is essentially title insurance protecting the buyer if any issues were missed.

Title Company's Role for Sellers00:02:11

For sellers, the title company ensures that existing mortgages and other debts associated with the property are paid off from the sale proceeds. They act as an escrow agent, receiving funds from the buyer, distributing payments to relevant parties, and then releasing the remaining proceeds to the seller. They also manage and record all necessary legal documents, ensuring the seller receives payment before the title is officially transferred to the buyer.

Summary of Key Functions00:03:42

In summary, the title company ensures clear title for the buyer by verifying ownership and checking for liens/judgments. For the seller, they guarantee payment before the property's title is officially recorded, acting as a crucial third party to protect both sides throughout the transaction.