Title Insurance, Closings & Settlements
What Other Real Estate Services Does Easler Law Provide to buyers, sellers, and investors?
- Purchase and Sale Contracts
- Financing and Loan Documents
- Quiet Title Actions
- Residential and Commercial Leases
- Landlord/Tenant and Evictions
- Zoning Regulation
- Title Insurance Services
- Closing Services
- Escrow Services
Title insurance makes sure the title to real estate properties is free and clear, which makes title insurance vital for anyone who wants to buy a real estate property because title companies make sure that the title to a property isn’t clouded by title defects, and protects against title defects, title claims, title fraud, and title liens.
Real estate title insurance can be purchased by anyone who wants to have a real estate title protected, is often required by lenders and buyers of residential and commercial real estate, and others who need a marketable title.
The title of a home refers to ownership of real estate; title companies guarantee that whoever is buying the title on a real estate property actually has the right to sell it. Sometimes, there are disputes over titles due to unpaid taxes or mortgages, so title insurance is essential for protecting owners from the cost of title disputes.
Title services also ensure that real estate records are correct and up-to-date, which is important for anyone who wants to buy or sell real estate properties because title companies can perform title searches on the property to determine if there are any problems with the title, such as title defects, title claims, title liens or title encumbrances.
Title companies and insurance may protect real estate owners from financial loss due to title disputes and ensure the property’s title is marketable when it’s time to sell because title insurance protects them from title defects, title claims, title liens, and title encumbrances.
Title Insurance Underwriting Process
The title insurance process ensures that the title is good so that buyers don’t have to worry about anything wrong with the title when buying a real estate property. Title companies will ensure the title is marketable and cleansed of title defects, liens, or encumbrances.
The real estate title insurance process begins with title searches and title exams to determine the title’s marketability, which involves reviewing legal records of the property to make sure there are no title defects.
Title companies then issue title commitments that provide information on the title’s condition, title’s value, title insurance premiums, or title fees.
Title companies may also issue title binders, which are preliminary title insurance policies that protect the buyer’s interest in the property before closing because title binders protect buyers from title defects. At the same time, they wait for their permanent title policy to be issued.
The real estate title insurance process ends when all title conditions, title exceptions, and title exclusions are found in the title commitment or binder. The title policy is issued to protect the buyer from future claims on the property.
The real estate title insurance process ensures that buyers don’t have to worry about anything wrong with the title when they want to buy real estate properties because title companies make sure the title is free and clear of any title defects, title claims, title liens, or title encumbrances.
Real Estate Settlement Process for Sellers
The real estate settlement process for sellers involves closing on a home, which is when sellers receive payment for their properties.
At the end of the settlement process, sellers will get paid by wire or check for payment for their properties. Sellers also receive title insurance policies that protect them from financial loss due to future title disputes or defects because sellers are responsible for the real estate they own.
Like sellers, buyers have to sign closing documents on or before the settlement date to receive payment in exchange for their property.
The real estate settlement process for sellers is complete when sellers receive a title commitment, all of the cash or checks for their properties, and they execute the closing documents such as deeds, closing statements, affidavits, and so on.
Real Estate Settlement Process for Buyers
The buyers are protected from financial loss due to future title disputes or defects because buyers receive title insurance policies that protect them from any problems with the real estate they’re buying.
The real estate settlement process is complete when buyers receive a title commitment, fund the purchase, and sign the closing documents.
Why Use an Attorney for Title Insurance and Closing Services
The real estate settlement process can be long and complicated for both buyers and sellers of properties. There are many reasons why buyers, sellers, and refinancing should use an attorney over a title company.
First, non-attorney title companies are not able to provide legal advice to their clients, where real estate attorneys who offer title insurance and closing services can provide legal advice and resolution services for any title defects, title claims, or title liens where title companies cannot do so because they are not attorneys.
Second, Attorneys are held to a higher standard when underwriting title insurance and performing closing services because title companies have standards to follow.
Lastly, real estate attorneys are essential for closing services because they have more education and knowledge in real estate law, title work, court record research, and review of title reports. In this sense, using a title company is not the same as using an attorney because title companies will not provide legal advice to buyers, sellers, and those to refinance their properties and choose to use an independent third party.
That’s why title attorneys should only provide title insurance and closing services as opposed to title companies.
Learn more about Title Insurance, Closings, Real Estate
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