Most homebuyers are unaware of what goes into the closing process and the role of a title company when buying a home. When buying or selling property, your realtor or broker will typically recommend a title company to handle the escrow. That said – you do have a choice. In fact, thanks to The Real Estate Settlement Procedures Act (RESPA), homebuyers are entitled to choose their own title company. In this blog, we will share insight and tips to consider when choosing a title company.
What is the role of a title company when buying a home?
By definition, a title company is a third party that is brought in to work on behalf of both the buyer and seller in a real estate transaction. They are hired to investigate the title of the home you are purchasing to verify that the title to the property is legitimately transferred to you as the new owner.
What questions should I ask before choosing a title company?
Is my investment protected?
Homebuyers and real estate agents should check the financial stability ratings for the underwriter of their title insurance policy and contact their title company with any questions they might have. After all, buying a home is one of if not the most expensive transaction a person makes in their lifetime.
Is my money safe?
Wire fraud is one of the worst fears for a homebuyer during the closing process. While there is a valid reason for this fear, at Landmark Title we have security in place to guard against wire fraud and protect our clients and their funds. Your escrow funds must be handled with the utmost safety and care. Any reputable title company is more than happy to discuss the process they have in place to protect clients’ funds. Landmark Title has top notch security software in place to protect your money.
Is this title company a neutral third party?
You should always ask this question because sometimes a title and closing company can be owned by a lender, real estate firm, or a builder which can be a conflict of interest in some cases.
In addition to the quoted premium, what other fees and charges can expect?
You’re making a significant purchase. Make sure to read the fine print and do your homework. Shopping for the lowest premiums isn’t always the best route, as a company may make up the difference charging additional fees such as electronic delivery fees, overnight courier fees, wire fees, etc. These can add up and are likely comparable to a reputable company that charges market rate premiums.
Does your company follow the title industry’s best practices?
This question might seem uncomfortable to ask but it shouldn’t be overlooked. The American Land Title Association(ALTA) has a guide of best practices to ensure that title companies are properly conducting procedures and to provide a positive and compliant real estate transaction experience for the buyer.
Why should I choose Landmark Title?
Landmark Title’s history in the industry dates back more than 45 years. The company employs a strong team of highly experienced professionals in title and escrow services. With offices in Arizona and Nevada, Landmark Title works with customers throughout the U.S. investing in real estate in the Southwest to ensure a smooth closing process. If you have any questions about our company and services, contact us to speak to a team member today.