You may be surprised to learn that a title insurance company is an extremely important part of any real estate transaction. To give you a better understanding, we have compiled a quick breakdown of what a title insurance company does before, during, and after a real estate closing.
At Willow Bend Title Company it is our job to do a Title Search. This verifies that the Seller has the legal right to sell a property to a Buyer and reveals any problems encumbering the title that must be resolved before closing
Some of the information we search for are:
Mortgages: A satisfaction of mortgage, release of mortgage, deed of re-conveyance will be needed to show the original mortgage was paid in full.
Loans: A second mortgage, home equity loan, a home equity line of credit, or other types of home improvement loans must be paid off and a corresponding release recorded.
Judgements/Other Liens: Taxes, utility bills, or other debts that creditors have led to a lien being placed against the property for nonpayment.
Community Association Assessments: If the previous owner is up to date with dues, there are no pending violations, and no HOA liens.
Restrictions: Based on location and type of property, there may be restrictions on who can own and how they can use the property.
Easements: Agreements to allow certain individuals access to parts of the land for a specific purpose. Such as Utility easements or access easements.
Leases: Rental properties with tenants may have certain rights based on prior agreements that the new owner may be required to honor it.
In addition to doing a Title Search, we have a land survey conducted to establish official boundaries and discover any possible encroachments on the property. This can include a building, fence, or other structure built on the property. If there’s an encroachment or easement that may cause a problem we take this information into consideration when issuing the title insurance policy.
Title Report & Opinion
A title report or abstract is a historical timeline of when the property was sold, inherited, or involved in any court litigations like foreclosure or bankruptcy and tax auctions. Based on this report, we write the Title Opinion that states if we believe the Seller has a right to sell and if we can provide title insurance. Keep in mind that any issues discovered during the inspection period may need to be resolved before the final policy is issued.
We issue title insurance policies to protect homeowners and lenders from conflicts that may arise from the property's previous owners. You only have to pay title insurance once. This is done when you close on the property and then you are covered for as long as you own the home.
Disbursement of Funds
In addition to the above, we also ensure that the proper funds are disbursed to the Seller, Lender, and any other parties who are financially involved. These funds are held in an escrow account where our Escrow Officers come in to manage this process and ensure all post-closing packages are delivered to each party.
At Willow Bend Title we are committed to researching, insuring the title and managing a seamless closing for your new Texas home. We are one of the most trusted names in the industry and here to help guide you. Contact us to learn more.