Title Escrow Services Are An Important Part Of A Home Sale

| Tuesday, June 11, 2013
By Liliana Mills


Buying a home involves numerous steps that commence with the transfer of money and the buyer's subsequent ownership of the new property. Companies that offer title escrow services play a vital role during this process. They provide the necessary authorizations required for realtors, lenders, sellers, and buyers to complete a home sale transaction. The following are some essential facts about such companies:

Paperwork is a very important part of the process of purchasing a home. For instance, in situations where a lending institution or bank is being used to finance the buyer's purchase, such companies streamline the paperwork necessary to complete the transaction. They must also secure whatever funds and documents are necessary to the process. The agreement terms are usually the deciding factor with regard to the escrow company's role.

An escrow account is essentially a temporary account that acts as a vault for any documents or money that must change hands when a dwelling is sold. Along with the precise cost of the property, sellers and buyers also pay the escrow and title company, as well as extra fees to the bank or lending institution from where they received their home loan. The escrow account protects the interests of all parties involved.

Property sales that involve banks usually require specific steps to ensure that the purchaser will have total ownership of the home when the transaction has commenced. When a consumer has applied for a mortgage with a lending institution, the latter submits facts about the dwelling and its seller to the company handling the documents and money. The company then researches the deed to the property to discover whether or not mortgages, lawsuits, or liens have been placed against it in the past.

It is the responsibility of the title company to assure the buyer, seller, and lending institution that a clear deed is attached to the home and a subsequent sale will pose no problems. This is the primary reason services of this type are sought: it is not helpful to place a property on the market if the deed is not clear and future issues will arise between the seller and the new owner.

The type of company listed above also typically oversees the closing of the property. This procedure represents the final phase of the sale. The agency handling this process must coordinate all facets of the paperwork, from obtaining any required documents from the bank, to the preparation of the paperwork for the final transaction.

Something referred to as a settlement statement must also be prepared by an officer of the company. This document outlines all the costs involved in the transaction. The latter include title recording fees, closing costs, the real estate agent's fee, and transfer fees.

When the aforementioned facts are considered, it is not difficult to understand why title escrow services are important to a satisfactory outcome between a prospective homeowner and seller. This is why it is never wise to select such an agency in haste. Rather, one should only use an established company with a good reputation in the neighborhood. Property ownership is a serious responsibility, and therefore consumers should carefully consider the information above when planning to acquire a home.




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