Title companies as we know are indispensible when it comes to real estate transactions. The fact that they work on behalf of more than one party has made them even more important. They usually play a crucial role in the real estate market and what you can expect while dealing with them should be known. It may also be mentioned here that regardless of the state in which you are residing, a Rockville Maryland Real Estate Title Company will perform the same task as one based in another state.
A Step-wise Approach to their Role
Once when the contract between the buyer, the seller, the real estate agent (if any), and any other third party has been signed, the contract papers along with the transaction money is handed over to the title company. Thereafter, the title company will issue a money receipt to every party involved in the transaction. The same also holds true for the documents (the contract papers that have been signed).
An important aspect that you must remember is that the GF or the Guaranty file has to be used whenever you intend to close the deal. This information (GF) is usually provided on the cover letter provided by the title company that will also provide the name of the closing agent and also his contact details.
The closer is responsible for communicating with the seller, the buyer, and the other parties involved in the real estate transaction for the tax statements. Closing is usually carried out once the closer receives all the relevant documents and after he has prepared the settlement statement. By closing, it is meant that a meeting will be held between the parties when loan as well as the transfer documents is signed by all the parties.
Then is the title search, which is crucial. This is usually carried out to check the prevailing status of the property for which the transaction is taking place. The search will allow the buyer to know whether or not the property has been mortgaged or is in foreclosure and information of similar kind.
Title insurance is important for any property owner. Here too, the title company will work for the insurance company. In reality the Rockville Maryland Real Estate Title Company will only represent the insurance company as it is doing for the other parties. In fact, it works more as a mediator for all parties. On getting clearance, it will issue an insurance policy as instructed by the insurance company and will receive a commission for having worked on behalf of the insurance carrier. The payment that the party makes for the insurance policy will be taken by the insurance company.
Aside from the above, the title company plays an important role when it comes to issuing settlement statement, closing documents, and above all disbursement. If you are on the lookout for a good company that will streamline your real estate transactions and procedures, you can check with the BBB to find out their present working status, if you have zeroed-in on a title company