![]() ![]() Without title insurance, the liability of resolving the issue in court would fall squarely on the new owner. Those heirs with a claim to the property may come forward later to assert their right to ownership. If the seller is the assumed heir to the property, he or she may sell the property without realizing other heirs are named in the will. One example of how title insurance protects owners includes when a property of a decedent (deceased person) is sold before the will is read. ![]() You may find a title agent who performs all three roles depending on the size of the company and state requirements. In other states, a license is required to be a title agent, escrow officer, or closing agent. The attorney may be required to manage all of these aspects of the real estate transaction or only certain functions. There are a handful of states, like North Carolina and Georgia, that require an attorney to be involved with a transaction if title insurance is required. Often, a closing agent will coordinate the time and place of the closing, prepare the final closing packages for sellers and buyers, manage the signing and notarization of closing documents, and collect payments due at closing.Īt the request of a lender, underwriter, or another party, a notary signing agent or loan signing agent may be used in lieu of a closing agent during a mobile or electronic closing. A closing agent, also known as a settlement agent, is the professional who supervises this step in the transaction. In addition to holding and keeping funds safe, other escrows tasks include preparing transaction documents like the closing disclosure, settlement statement, or HUD-1, ensuring the buyer and seller meet financial obligations, preparing payoff demands for existing liens, verifying wiring instruction, and reconciling financial statements.Ĭlosing is the process of finalizing the real estate transaction. In most cases, an escrow professional is likely to handle anything related to the financing of the real estate transaction. Escrow is the holding of funds on behalf of the party to the transaction. In some states, only attorneys may review title. These professionals may encompass title processors, title examiners, title officers, abstractors, or title clerks. Title professionals map legal descriptions of properties, use databases to search property records to find documentation related to property and use rights, follow underwriting guidelines to produce title commitments, and work with attorneys to evaluate and resolve legal issues encumbering the title. Title specifically refers to the examination of property title to find defects before issuing an insurance policy. The exact division of labor may vary slightly depending on the state you complete a transaction, but here is a quick breakdown of each. While a title agent in one state may perform the duties of what would be considered the function of an escrow officer in another state, each of these terms conveys specific functions of these professionals. Title, closing, and escrow are often used as interchangeable terms, but there are important distinctions between them. Issue title policies to the appropriate parties.Ensure the recording instruments listed in the title commitment are properly recorded after closing.Prepare settlement statements and other documents before closing.Conduct a property survey, when needed, to discover and resolve any potential encroachments or problems with the legal description.Produce and follow the title commitment to resolve defects and set forth exceptions to the policy.Search for judgments, bankruptcies, restrictive covenants, easements, or leases that encumber the property, require payment from the proceeds of the sale, or prevent the transaction from taking place.Look for other outstanding bills that could become a lien, like unpaid HOA dues.Find any outstanding unpaid liens like mortgages, tax liens, or mechanic’s liens.Prepare or obtain a preliminary title report or abstract of title. ![]()
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