A title company formally handles real estate transactions. This is where you will work with title agents who will facilitate a smooth transition from one owner to another.
What exactly is a title agent — and what do they do? Let’s explore.
What is a Title Agent?
A title agent wears many hats throughout the closing process. What they are most well-known for is making sure that there are no issues with the rights to the property before they are transferred to the new owner.
But that isn’t all they do.
Title agents have a hand in escrow, document preparation, title insurance, and more. They are with you at every stage of the closing process, guiding you through it. Should you have any questions about the real estate transfer, they will have the answer.
Once the initial sales contract is signed, a title agent’s job begins.
What Does a Title Agent Do?
Here is a closer look at what title agents do.
Completing a Title Search
One of the main roles of a title agent is performing a title search. This involves a deep dive into public records. They are trying to confirm that the person who is selling the property actually has the authority to do so. And, they also want to make sure there aren’t any issues with the title, such as liens, judgments, unknown heirs, forged documents, outstanding taxes, divorce settlements, and so forth.
Once the search is complete, title agents examine all the records listed in a document referred to as a title commitment. Any issues are addressed so that the property is free and clear for closing.
Issue Title Insurance
Title agents issue title insurance policies on behalf of the insurance company and underwriter. This is an essential part of the home buying process— giving you protection in case something was not uncovered during the title search. Erroneously recorded documents, unknown heirs, missing wills, and fraudulent documents are all examples of defects that can put the new owner’s rights in jeopardy.
A title insurance policy protects your financial interest in the property should something go awry.
Facilitate the Closing
Another major role of a title agent is to facilitate the closing. They process all the closing statements and schedule the signing. Legal and loan documents are prepared so that they are ready for you. And all closing costs are calculated.
The title agent also acts as an escrow agent. Once the documents are signed, they make sure that money is delivered to the right party to complete the settlement.
Post-Closing
While you may be done after your closing, title agents still have work to do. They prepare title insurance policies, as well as report the transaction to the IRS, and submit original documents to local county recorders so that they can be recorded in public records.
Choosing the Right Title Agent
Your title agent will play a significant role in your real estate transaction. This is why it is so important to choose the right agent and title company.
You may receive recommendations from your real estate agent or other professionals in the industry. However, it is always a good idea to do your due diligence. Choose a title agent with extensive experience who will communicate openly through each step and take security seriously.
In other words, the right title agent is one that you can count on.
Buchanan Settlement Services is a title company in Pennsylvania that offers title and settlement services for residential and commercial real estate transactions.
