Behind the Scenes: Title Work
What happens between the time you write an offer and the time you legally own the home? Siena Title will handle the following items to ensure that you receive clear title to the property: :
Tax Check
What taxes are owed on the property? The title company contacts the various assessor-collectors.
Title Search
Copies of documents are gathered from various public records: deeds, deeds of trust, various assessments and matters of probate, heirship, divorce, and bankruptcy are addressed.
Title Examination
Verification of the legal owner and debts owed.
Document Preparation
Appropriate forms are prepared for conveyance and settlement.
Settlement
The title closer oversees the closing of the transaction:
- The seller signs the deed
- The buyer signs a new mortgage
- The old loan is paid off and the new loan is established
- The appraiser, lender, title company, and other service providers for the parties are paid
- Title insurance policies will then be issued to the buyer and the lender
Title Insurance
There are two types of title insurance:
Coverage that protects the lender for the amount of the mortgage,
Coverage that protects the buyer’s equity in the property.
Both you and your lender will want the security offered by title insurance. Why?
The title company will search public records to determine who has owned any piece of property, but these records may not reflect irregularities that are almost impossible to find. Here are some examples: an unauthorized seller forges the deed to the property; an unknown, but rightful heir to the property shows up after the sale to claim ownership; conflicts arise over a will from a deceased owner; or a land survey showing the boundaries of your property is incorrect.
For a one-time insurance premium paid at closing, title insurance will safeguard you against problems including those event an exhaustive search may not reveal.
