What a Title Company Does

Ever wonder exactly what the job of a title company is? Or how it affects you? Here’s a quick look at what the title company’s role is.

REQUESTS A TITLE REPORT AND POLICY

• Title Report:  A report showing the condition of title before a sale orloan transaction.  After completion of the transaction, a title insurance policy is issued.
• Title Policy:  Title insurance is insurance against loss resulting from defects of title to a specifically described parcel of real property.  Defects may run to the fee (chain of title) or to encumbrances on the property.

(You will want to ask your title officer for an explanation of any exceptions listed on the pre-liminary title report)
DRAFTS A DEED OF TRUST

• Deed of Trust:  A document filed with the county showing a property is transferred to a trustor by the borrower (trustee) in favor of the lender (beneficiary) and reconveying upon payment in full.

PAYS OFF EXISTING LOAN

• The title company pays off any existing loans and lienholders.

TAXESAND INSURANCE

• The title company prorates the taxes and insurance upon instructions from the Buyer and the Seller.

CONFIRMS HAZARD INSURANCE
COORDINATES SIGNING OF DOCUMENTS

• Oversees the Buyer and Seller in signing all necessary documents to close the escrow.

RECORDING DOCUMENTS

• The title company records the appropriate documents such as the deed and lender’s re- quired documents, with the county recorder’s office, giving public notice.

DISBURSEMENT

• The title company disburses the documents & money to each party