Title companies focus on the examination of the quality of titles or deeds associated with property. Many times, the title company will also insure the property during the process of a sale. When investigating a given property, the title company researches the claim of ownership of the property. The Title company will review the current title or deed to ensure there are no defects or questionable factors present in the documentation. Once title is established, the title company ensures there are no current liens on the property other than those already communicated by the owner. If a title company fails to uncover this information, it can jeopardize a sale or title claim invalid.

Title companies will first do an “abstract of title”, or search county real estate records, to determine the legal owner of the property. This search will reveal any mortgages, liens, judgments, or unpaid taxes that have to be satisfied before the property is conveyed. Also, any existing easements, restrictions, or leases that affect the property must be detailed.

Then, the title company will issue an Opinion Letter or a Commitment of Title Insurance to the lender and prospective buyer. These documents will address any problems that must be corrected before the buyer can receive a “good title”. After this exchange of documents, the deal can be closed.

Closing Process and Final Link Signing Services

During the closing process, documents are signed and exchanged to convey title, secure the lender, and deal with issues such as leases and rights-of-way. This is when signing companies or notary agents get involved in the process. Final Link Signing, one of the nations leading notary signing firms, receives requests from title companies or lenders to ensure successful completion of documents. Once documents are signed and completed, Final Link Signing will communicate status of closing and return documents to their respective parties. The Closing Statement, or HUD 1, is then prepared. This includes the mortgage lender’s charges, document preparation charges, title company fees, recording costs, and any payoffs to release existing mortgages, taxes, commissions, surveys, and other costs.

As detailed in the HUD 1 settlement statement, the title company will then collect funds and settlement costs from the buyer and lender. These funds are used to pay off the transaction expenses and existing mortgages, and the net proceeds go to the seller.

After closing, the title company records the deed, mortgage, and assignments at the county courthouse. The original documents are returned to the parties, and the new owners receive a deed to the property. The lender will hold the original mortgage documents until the loan is paid in full. When the loan is paid off, the lender will release their lien against the property and forward the original mortgage documents to the home owner.