The Essential Services of the Real Estate Title Insurance Company
The real estate market can be a baffling world. If you are new in the world of real estate, among the first words you hear of is the title company. The term title insurance company means the same thing. The title company is basically a buffer among the different parties involved in a real estate deal. It is a company that does not have a stake in the transaction but gets a fee for facilitating the smooth transfer of the property between the buyer and the seller. It has the elementary functions to process the payment receipts, ensuring the rights of both the parties involved and managing insurance cover.
A title company is expected to be neutral to both the parties involved. Besides acting as a facilitator, one of the primary functions of such a company is to undertake a thorough background check of the property. There are instances when an estate may have conflicting ownership issues and default of property tax. It is the title company that ensures that a piece of property does not have any legal issues.
Very often these companies act as insurance agents that provide a safeguard in case the property is affected by unforeseen events. In case there is a problem with the legal status of the property, the company is liable to pay damage compensation to the buyer.
Sometimes, the company can serve as an escrow as well. However, the escrow account is not set up in the name of the title company. There can be another company, a subsidiary or otherwise, arranged through the title company
It is the job of the title company to check all the requisite paperwork is in order. If it has not been done, the company takes steps to complete it. Both the parties rely on them for a successful conduction of the deal.