filmov
tv
Jason's Video-Blog EP2 - What does a title company do?
Показать описание
What does a title company do?
One of the things I have noticed over the years, especially with first time homebuyers, is that most people don’t know what a title company does, or why they need a title policy.
First, let me just say that a title company is an insurance company at the end of the day. They insure that a buyer will get a clean and clear title to the property free of any liens or encumbrances.
To put this in perspective for you, let’s say someone buys a home. They obtain a title policy, close on the home, and move in. One day, they get a knock on the door. There stands in the doorway someone who says they have a claim to the property. If their claim is legit, there is a problem. The title policy will then kick in take care of this issue one way or the other. Either they pay the other party what is owed, or they pay you depending on the terms of the policy. Either way, you are covered.
Amanda Tidmore (featured in the video) tells a story of an investor who closed on a home without getting a title policy. They purchased the property and paid cash. No loan. He then went on to renovate the property and put in approx. $50,000 in repairs and upgrades. There was a $100,000 lien on the property that the seller was not aware of. They foreclosed on the property and took possession. The buyer was out the purchase price of the property, and the $50,000 in upgrades. I guarantee he will never buy a home without title insurance again!
If you have a title policy in place, you wont have to worry about any mortgage liens, mechanic liens (contractors owed money for work they did on the property) or any back taxes that were no paid. You can rest easy knowing that you have not inherited a huge financial problem. Worth every penny!
Some of the other services that a title company provides is escrow, closing, and notary services.
Once you have a property under contract, the title company will receipt the contract. This basically means they will acknowledge the contract and any earnest monies that were negotiated as a good faith deposit will be placed in an escrow account. They will acknowledge the contract and the receipt of the monies in writing, usually on the contract itself. This is then sent to the mortgage company so they can start on your loan.
In the background, the title company is running a title search. They are looking to see if the seller has any judgments against them. They are looking for back taxes, liens or any other issues with the title itself. They want to be sure there are no long lost cousins that have an interest in the property that my complicate your life. If it comes back clear, they issue a title commitment which your lender will require to do the loan. If they find any issues, they will work with the seller to get them resolved. At any rate, as the buyer, you have nothing to worry about here unless there is something that cannot be cured. And if there is, then you dodged a bullet. Let’s go shopping for another home!
Once a title commitment is issued the lender will do their thing. Once the lender has processed the loan, they will send closing documents to title. The title company will then contact you to set up a closing. They will go over all of the documents with you, show you where to sign and initial, and they will notarize the documents. They then send the package back to the lender for funding. Once the lender releases funds, your transaction is now “Funded.” The title company will then disburse funds to all the parties that need to be paid. The seller will get their money, the realtors are paid their commissions, and any other parties that are owed a fee will be paid.
Finally, the title company will file your note and deed of trust at the courthouse and pay those fees as well. They issue you a title policy and let everyone know that is it time to give you your keys!
First American Title- The Plaza1846 N. Loop 1604 W., Suite 101San Antonio, TX 78248
Jason C Campbell, Broker
Author of the upcoming book "How to Buy or Sell A Home Without getting SCREWED!"
Platinum Top 50 Realtor®, 2014 / 2015 / 2016
Option One Real Estate
210-389-5266
One of the things I have noticed over the years, especially with first time homebuyers, is that most people don’t know what a title company does, or why they need a title policy.
First, let me just say that a title company is an insurance company at the end of the day. They insure that a buyer will get a clean and clear title to the property free of any liens or encumbrances.
To put this in perspective for you, let’s say someone buys a home. They obtain a title policy, close on the home, and move in. One day, they get a knock on the door. There stands in the doorway someone who says they have a claim to the property. If their claim is legit, there is a problem. The title policy will then kick in take care of this issue one way or the other. Either they pay the other party what is owed, or they pay you depending on the terms of the policy. Either way, you are covered.
Amanda Tidmore (featured in the video) tells a story of an investor who closed on a home without getting a title policy. They purchased the property and paid cash. No loan. He then went on to renovate the property and put in approx. $50,000 in repairs and upgrades. There was a $100,000 lien on the property that the seller was not aware of. They foreclosed on the property and took possession. The buyer was out the purchase price of the property, and the $50,000 in upgrades. I guarantee he will never buy a home without title insurance again!
If you have a title policy in place, you wont have to worry about any mortgage liens, mechanic liens (contractors owed money for work they did on the property) or any back taxes that were no paid. You can rest easy knowing that you have not inherited a huge financial problem. Worth every penny!
Some of the other services that a title company provides is escrow, closing, and notary services.
Once you have a property under contract, the title company will receipt the contract. This basically means they will acknowledge the contract and any earnest monies that were negotiated as a good faith deposit will be placed in an escrow account. They will acknowledge the contract and the receipt of the monies in writing, usually on the contract itself. This is then sent to the mortgage company so they can start on your loan.
In the background, the title company is running a title search. They are looking to see if the seller has any judgments against them. They are looking for back taxes, liens or any other issues with the title itself. They want to be sure there are no long lost cousins that have an interest in the property that my complicate your life. If it comes back clear, they issue a title commitment which your lender will require to do the loan. If they find any issues, they will work with the seller to get them resolved. At any rate, as the buyer, you have nothing to worry about here unless there is something that cannot be cured. And if there is, then you dodged a bullet. Let’s go shopping for another home!
Once a title commitment is issued the lender will do their thing. Once the lender has processed the loan, they will send closing documents to title. The title company will then contact you to set up a closing. They will go over all of the documents with you, show you where to sign and initial, and they will notarize the documents. They then send the package back to the lender for funding. Once the lender releases funds, your transaction is now “Funded.” The title company will then disburse funds to all the parties that need to be paid. The seller will get their money, the realtors are paid their commissions, and any other parties that are owed a fee will be paid.
Finally, the title company will file your note and deed of trust at the courthouse and pay those fees as well. They issue you a title policy and let everyone know that is it time to give you your keys!
First American Title- The Plaza1846 N. Loop 1604 W., Suite 101San Antonio, TX 78248
Jason C Campbell, Broker
Author of the upcoming book "How to Buy or Sell A Home Without getting SCREWED!"
Platinum Top 50 Realtor®, 2014 / 2015 / 2016
Option One Real Estate
210-389-5266
0:09:27
0:12:44
0:13:09
0:01:08
0:00:11
0:16:18
0:05:13
0:00:13
0:10:21
1:00:45
0:00:09
0:13:04
0:00:44
0:10:36
0:10:21
0:11:13
0:21:43
0:11:28
0:12:49
0:04:20
0:08:37
0:09:39
0:16:44
0:10:03