Role of Title Company

Role of Title Company

 

What role does a title company play in a real estate transaction? The title company acts as a “neutral third party” to ensure that all of the terms and conditions of a transaction have been met. What does that involve? When Metropolitan Title receives a sales contract, we do the following: Order title abstract

Order a house location survey (if requested)

Review title search to determine marketability and insurability of title

Review survey for encroachments or other boundary line issues (if survey is ordered)

Work to resolve any title issues that appear in the title search

Contact the seller’s mortgage lender to obtain the amount needed to pay off the seller’s existing loan(s)

Prepare title insurance commitment for the purchaser’s loan pursuant to the lender requirements (if applicable)

Contact all parties to schedule settlement date and time

Contact the local taxing authority to verify the amount of property taxes and determine proration between buyer and seller

Contact Condominium or Homeowner’s Association to verify the amount of dues and determine proration between buyer and seller

Coordinate deed preparation with local attorney

Obtain the lender’s loan documents and loan funds

Prepare the Closing Disclosure (if applicable) and any other required documents

An attorney or licensed settlement agent will conduct the closing at a location convenient for the parties. At that time, we will go through the settlement documents as you sign them, explaining the general purpose of each document.