You’ve decided to buy or sell your property and are faced with trying to find a Title Company. Fortunately, you know that Metro Title & Escrow is there to help you! Below are 5 things your Title Company should do for you and 5 that they should not do during your real estate transaction:
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5 THINGS YOUR TITLE COMPANY SHOULD DO FOR YOU:
1: PROVIDE A PRELIMINARY TITLE REPORT
Your Title company should provide you and your agent with a Preliminary Title report. This report shows the ownership of the property, and any issues that may delay the closing of the transaction.
2: HOLD YOUR EARNEST MONEY
A title company will often hold your Earnest Money deposit. If the sale does not go through, the seller may be allowed to keep the earnest money. Your Title Company will make sure this money ends up in the right hands.
3: OVERSEE YOUR SETTLEMENT AND CLOSING
As part of the process, title companies oversee the closing on a home. The Title Company is responsible for procurement of documents from your lender, obtaining signatures, making sure all the documents are properly notarized and sent to the right people, and dispensing funds to all parties.
4: FILE AND RECORD YOUR CLOSING DOCUMENTS
At the time of Closing, you will sign either a Warranty Deed shifting title to the buyer or you will sign a Deed of Trust, which is a recorded agreement between you and your lender. These types of documents will need to be recorded with the county. Your Title company will do this for you as part of the closing transaction.
5: OFFER TITLE INSURANCE
Title Companies are designed to offer you title insurance to protect you against any type of legal claims made on or against the ownership of the property. That’s what Title Companies are for!
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5 THINGS YOUR TITLE COMPANY SHOULD NOT DO FOR YOU:
1: NEGOTIATE PRICES FOR YOUR PROPERTY
Your Title Company should not negotiate the price for which you sell or purchase a property. That’s what your Real Estate Agent is for! Your Title Company legally can’t help with that part of the process.
2: PULL YOUR CREDIT
Your Title company will not have access to credit reports and will not and cannot pull your credit at any time in the transaction. You and your lender will work together on your credit report and find a loan that will be within your budget.
3: SCHEDULE YOUR HOME INSPECTIONS AND APPRAISALS
Your Title Company can’t help you get your home inspected or appraised. That is something that your lender and/or real estate professional will have to help you with.
4: PROVIDE TAX INFORMATION
Legally, Title Companies cannot provide tax advice or tax information to anyone. Any tax advice or information must come from a Tax Professional and not from your Title Company.
5: OFFER LOANS
Your Title company is not a lending company. They will never offer you a loan to purchase your home. Or a loan to furnish your new home with shiny new furniture, as much as we’d like to! Title companies are just the middle man in real Estate transactions and therefore will not have the funds to issue a loan.
Choosing the right Title Company is an essential part of your Real Estate transaction. Title companies are there to protect both buyers and sellers to insure the title of the property. Metro Title & Escrow is the right choice, in any situation. Feel free to contact us at any of our 22 locations across the State of Utah.
