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 the title abstract
Order a house location survey (if requested)
Review the title search to determine marketability and insurability of title
Review the survey for encroachments or other boundary line issues (if applicable)
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 for settlement 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.